507C.20 - DISSOLUTION OR SALE OF INSURER.

        507C.20  DISSOLUTION OR SALE OF INSURER.         The commissioner may petition for an order dissolving the      corporate existence of a domestic insurer or the United States branch      of an alien insurer domiciled in this state at the time the      commissioner applies for a liquidation order.  The court shall order      dissolution of the corporation upon petition by the commissioner upon      or after the granting of a liquidation order.  If the dissolution has      not previously been ordered, it shall be effected by operation of law      upon the discharge of the liquidator if the insurer is insolvent.      However, dissolution may be ordered by the court upon the discharge      of the liquidator if the insurer is under a liquidation order for      some other reason.  Notwithstanding the above, upon application by      the commissioner and following notice as prescribed by the court and      a hearing, the court may sell the corporation as an entity, together      with any of its licenses to do business, despite the entry of an      order of liquidation.  The sale may be made on terms and conditions      the court deems appropriate.  However, the order approving the sale      shall provide that the proceeds of the sale shall become part of the      assets of the liquidation estate, to be distributed in the manner set      forth in section 507C.42, and that the corporate entity and its      licenses shall thereafter be free and clear from the claims or      interests of all claimants, creditors, policyholders, and      stockholders of the corporation under liquidation.  
         Section History: Recent Form
         84 Acts, ch 1175, § 20; 87 Acts, ch 168, §1; 88 Acts, ch 1112, §      502         Referred to in § 507C.21