Section 9-221 - Voidable transfers.
§ 9-221. Voidable transfers.
(a) In general.- A transfer of or lien on the property of an insurer is voidable if the transfer or lien is:
(1) made or created within 4 months before the issuance of a show cause order under this subtitle;
(2) made or created with the intent to give a creditor a preference or to enable the creditor to obtain a greater percentage of the debt than another creditor of the same class; and
(3) accepted by the creditor having reasonable cause to believe that the preference will occur.
(b) Personal liability.- Each director, officer, employee, stockholder, member, subscriber, and any other person acting on behalf of an insurer that is concerned in a voidable transfer under subsection (a) of this section and each person that, as a result of the voidable transfer, receives any property of the insurer or benefits from the voidable transfer:
(1) is personally liable; and
(2) shall account to the Commissioner.
(c) Other transfers.- The Commissioner as receiver in a delinquency proceeding may:
(1) avoid a transfer of or lien on the property of an insurer that a creditor, stockholder, subscriber, or member of the insurer might have avoided; and
(2) recover the transferred property or its value from the person that received it unless that person was a bona fide holder for value before the date of issuance of a show cause order under this subtitle.
[An. Code 1957, art. 48A, § 157; 1996, ch. 11.]