507C.53 - ANCILLARY FORMAL PROCEEDINGS.

        507C.53  ANCILLARY FORMAL PROCEEDINGS.         1.  If a domiciliary liquidator has been appointed for an insurer      not domiciled in this state, the commissioner may file a petition      with the court requesting appointment as ancillary receiver in this      state if both of the following exist:         a.  If the domiciliary liquidator finds that there are      sufficient assets of the insurer located in this state to justify the      appointment of an ancillary receiver.         b.  If the protection of creditors or policyholders in this      state so requires.         2.  The court may issue an order appointing an ancillary receiver      in whatever terms it deems appropriate.  The filing or recording of      the order with the recorder of deeds in this state is the same notice      as a deed, bill of sale, or other evidence of title duly filed or      recorded with that recorder of deeds.         3.  When a domiciliary liquidator has been appointed in a      reciprocal state, then the ancillary receiver appointed in this state      may aid and assist the domiciliary liquidator in recovering assets of      the insurer located in this state.  As soon as practicable, the      ancillary receiver shall liquidate from their respective securities      those special deposit claims and secured claims which are proved and      allowed in the ancillary proceedings in this state.  The ancillary      receiver shall pay the necessary expenses of the proceedings and      shall promptly transfer all remaining assets, books, accounts and      records to the domiciliary liquidator.  Subject to this section, the      ancillary receiver and any deputies have the same powers and are      subject to the same duties with respect to the administration of      assets as a liquidator of an insurer domiciled in this state.         4.  As to assets and books, accounts, and other records in their      respective states, when a domiciliary liquidator has been appointed      in this state, ancillary receivers appointed in reciprocal states      shall have corresponding rights, duties and powers to those provided      in subsection 3 for ancillary receivers appointed in this state.  
         Section History: Recent Form
         84 Acts, ch 1175, § 53         Referred to in § 507C.2, 507C.50, 507C.51, 507C.52