Effective 5/12/2020 31A-27a-501. Turnover of assets. (1) (a) If the receiver determines that funds or property in the possession of another person are rightfully the property of the estate, the receiver shall deliver to the person a written demand for immediate delivery of the funds or property: (i) referencing this section by number; (ii) referencing […]
31A-27a-502. Recovery from affiliates. (1) (a) If a receivership order is entered under this chapter, the receiver appointed under the receivership order may recover on behalf of the insurer from an affiliate as defined in Subsection 31A-1-301(5) the value received by the affiliate at any time during the five years preceding the filing date of […]
31A-27a-503. Unauthorized postpetition transfers. (1) Except as otherwise provided in this section, the receiver may avoid a transfer of an interest of the insurer in property, or an obligation incurred by the insurer, that is: (a) made or incurred after the day on which a petition for receivership is filed; and (b) not authorized by […]
31A-27a-504. Voidable preferences and liens. (1) (a) A preference may be avoided by the rehabilitator or liquidator, if: (i) the insurer is insolvent at the time of the transfer; (ii) the transfer is made within four months before the day on which the petition is filed; (iii) with reference to the transfer, one of the […]
31A-27a-505. Avoidance of property title transfers. (1) The rehabilitator or liquidator has the creditor’s rights described in this Subsection (1), without regard to any knowledge of the rehabilitator or liquidator or any creditor. (a) (i) The rehabilitator or liquidator is considered to: (A) have extended credit to the insurer on the day on which the […]
31A-27a-506. Fraudulent transfers and obligations. (1) For purposes of this section: (a) A “transfer”: (i) is made when the transfer is so perfected that a bona fide purchaser from the insurer against whom applicable law permits the transfer to be perfected cannot acquire an interest in the property transferred that is superior to the interest […]
Effective 5/9/2017 31A-27a-507. Receiver as lien creditor. (1) The receiver may avoid a transfer of or lien on the property of, or obligation incurred by, an insurer that the insurer or a policyholder, creditor, member, or stockholder of the insurer: (a) may have avoided without regard to any knowledge of: (i) the receiver; (ii) the […]
31A-27a-508. Liability of transferee. (1) Except as otherwise provided in this section, to the extent that the receiver obtains an order pursuant to Section 31A-27a-501, or avoids a transfer under Section 31A-27a-502, 31A-27a-503, 31A-27a-504, 31A-27a-506, or 31A-27a-507, the receiver may recover the property transferred, or the value of the property, from: (a) the initial transferee […]
31A-27a-509. Claims of holders of void or voidable rights. (1) (a) The receiver may disallow a claim of a creditor who receives or acquires a preference, lien, conveyance, transfer, assignment, or encumbrance voidable under this chapter, unless the creditor surrenders the preference, lien, conveyance, transfer, assignment, or encumbrance. (b) If an avoidance is effected by […]
31A-27a-510. Setoffs. (1) (a) A mutual debt or mutual credit shall be set off and the balance only allowed or paid: (i) whether arising out of one or more contracts between the insurer and another person in connection with an action or proceeding under this chapter; and (ii) except as provided in Subsection (2) and […]
31A-27a-511. Assessments. (1) As soon as practicable but not more than four years from the day on which an order of receivership of an insurer issuing assessable policies is entered, the receiver shall make a report to the receivership court setting forth: (a) the reasonable value of the assets of the insurer; (b) the insurer’s […]
31A-27a-512. Reinsurer’s liability. (1) (a) Except as otherwise provided in this chapter, the amount recoverable by the receiver from a reinsurer may not be reduced as a result of a delinquency proceeding with a finding of insolvency, regardless of any provision in the reinsurance contract or other agreement. (b) An agreement, written, oral, or otherwise, […]
Effective 5/14/2019 31A-27a-512.1. Indemnitor liability. (1) (a) Except as otherwise provided in this chapter, the amount recoverable by the receiver from an indemnitor may not be reduced as a result of a delinquency proceeding with a finding of insolvency, regardless of any provision in the indemnity contract or other agreement. (b) To the extent an […]
31A-27a-513. Reinsurance continuation and termination. (1) For purposes of this section: (a) “Coverage date” is the day on which an order of liquidation is entered. (b) “Election date” is the day on which an affected guaranty association elects to assume under this section the rights and obligations of a ceding insurer that relate to a […]
31A-27a-514. Recovery of premiums owed. (1) (a) An insured shall pay any unpaid earned premium or retrospectively rated premium due the insurer: (i) directly to the receiver; or (ii) to an agent that pays or is obligated to pay the receiver on behalf of the insured. (b) (i) Premium on surety business is considered earned […]
31A-27a-515. Commutation and release agreements. (1) For purposes of this section, “casualty claims” means the insurer’s aggregate claims arising out of insurance contracts in the following lines: (a) farm owner multiperil; (b) homeowner multiperil; (c) commercial multiperil; (d) medical malpractice; (e) workers’ compensation; (f) other liability; (g) products liability; (h) auto liability; (i) aircraft, all […]
31A-27a-516. Reinsurance recoverable trust provisions. (1) As used in this section: (a) “Beneficiary” means the domiciliary insurance commissioner, as liquidator of the insurer for whose sole benefit a reinsurance recoverable trust is established. (b) “Grantor” means the reinsurer who has established a reinsurance recoverable trust for the sole benefit of the beneficiary. (c) “Qualified United […]
