58-29B-32. Order of rehabilitation--Contents--Effect of filing or recording--Vesting of title--Accounting required.
Except for good cause shown, an order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall be issued within ten days of the hearing on the order to show cause and shall contain an appointment of the director and his successors in office as the rehabilitator, and shall direct the rehabilitator forthwith to take possession of the assets of the insurer, and to administer them under the general supervision of the court. The filing or recording of the order with the clerk of the circuit court of Hughes County or register of deeds of the county in which the principal business of the company is conducted, or the county in which its principal office or place of business is located, shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that register of deeds would have imparted. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator. Any order issued under this section shall require an accounting to the court by the rehabilitator. Accountings shall be at such intervals as the court specifies in its order, but no less than semiannually. Entry of an order of rehabilitation does not constitute an anticipatory breach of any contracts of the insurer nor may it be grounds for retroactive revocation or cancellation of any contracts of the insurer, unless revocation or cancellation is done by the rehabilitator pursuant to §§58-29B-32.1 to 58-29B-35, inclusive. Each accounting shall include a report from the rehabilitator on whether a plan pursuant to §58-29B-35 is being prepared and, if so, the timetable for the preparation.
Source: SL 1989, ch 436, §32; SL 1992, ch 351, §2.