40-3620. Same; petition for liquidation of insurer, when; defense against petition, payment of costs and expenses; termination of rehabilitation, petition and order; payment of costs and expenses.
40-3620
40-3620. Same; petition for liquidation of insurer, when; defense againstpetition, payment of costs and expenses; termination of rehabilitation,petition and order; payment of costs and expenses.(a) Whenever the commissioner believes further attempts torehabilitate an insurer would substantially increase the risk of loss tocreditors, policyholders or the public, or would be futile, the commissionermay petition the district court of Shawnee county for an order of liquidation. A petition under this subsection shall have the same effect as a petition underK.S.A. 40-3621. The court shall permit the directors of the insurerto take suchactions as are reasonably necessary to defend against the petition and mayorder payment from the estate of the insurer of such costs and other expensesof defense as justice may require.
(b) The rehabilitator may at any time petition the court for an orderterminating rehabilitation of an insurer. The court shall also permit thedirectors of the insurer to petition the court for an order terminatingrehabilitation of the insurer and may order payment from the estate of theinsurer of such costs and other expenses of such petition as justice mayrequire. If the court finds that rehabilitation has been accomplished and thatgrounds for rehabilitation under K.S.A. 40-3616 no longer exist, thecourt shallorderthat the insurer be restored to possession of such insurer's property and thecontrol ofthe business. The court may also make that finding and issue that order at anytime upon such court's own motion.
History: L. 1991, ch. 125, § 16; July 1.