31A-27a-115 - Approval and payment of expenses.
31A-27a-115. Approval and payment of expenses.
(1) The receiver may pay an expense under a contract, lease, employment agreement, orother arrangement entered into by the insurer before receivership, as the receiver considersnecessary for the purposes of this chapter. The receiver:
(a) is not required to pay an expense described in this Subsection (1) that the receiverdetermines is not necessary; and
(b) may reject a contract pursuant to Section 31A-27a-113.
(2) Receivership expenses other than those described in Subsection (1) shall be paid asfollows:
(a) unless the court orders otherwise in the rehabilitation or liquidation order, thereceiver may submit a motion pursuant to Section 31A-27a-107 to the receivership court toapprove:
(i) the terms of compensation of each special deputy or contractor; or
(ii) any other expense in excess of an amount established by this chapter;
(b) the receiver may, as the receiver considers appropriate, submit a motion to approveany other compensation, anticipated expense, or incurred expense not described in Subsection(2)(a);
(c) the receiver may pay as incurred:
(i) an expense not requiring receivership court approval; and
(ii) an expense approved in the rehabilitation or liquidation order; and
(d) the approval of an expense by the receivership court may not prejudice the right ofthe receiver to seek recovery, recoupment, disgorgement, or reimbursement of a fee based oncontract or a cause of action recognized in law or in equity.
(3) On an annual or more frequent basis, the receiver shall submit to the receivershipcourt a report summarizing the expenses incurred in the prior period.
(4) Receivership court approval is not required to pay expenses incurred by the receiverin connection with the appeal of an order of the receivership court.
(5) All expenses of receivership shall be paid from the assets of the insurer, except asprovided in this Subsection (5).
(a) If the property of the insurer does not contain sufficient cash or liquid assets to defraythe expenses incurred, the commissioner may advance funds from the account established underSubsection 31A-27a-705(3).
(b) An amount advanced shall be repaid to the account out of the first available money ofthe insurer.
Enacted by Chapter 309, 2007 General Session