(a) The conservation, rehabilitation and liquidation of insurance companies and other persons subject to the provisions of sections 38a-903 to 38a-961, inclusive, are a matter of vital public interest and affect the relationships between insureds and their insurers.
(1) An application or petition under sections 38a-912, 38a-914, 38a-915, 38a-918, 38a-919 and 38a-920, shall operate as an automatic stay applicable to all persons, other than the receiver, which shall be permanent and survive the entry of an order of conservation, rehabilitation or liquidation, and which shall prohibit: (A) The transaction of further business; (B) the transfer of property; (C) interference with the receiver or with a proceeding under said sections; (D) waste of the insurer's assets; (E) dissipation and transfer of bank accounts; (F) the institution or further prosecution of any actions or proceedings in which the insurer is a party; (G) the obtaining of preferences, judgments, attachments, garnishments, or liens against the insurer, its assets or its policyholders; (H) the levying of execution against the insurer, its assets, or its policyholders; (I) the making of any sale or deed for nonpayment of taxes or assessments that would lessen the value of the assets of the insurer; (J) the withholding from the receiver of books, accounts, documents, or other records relating to the business of the insurer; or (K) any other threatened or contemplated action that might lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors, or shareholders, or the administration of any proceeding under said sections.
(2) Notwithstanding any other provision of law, no bond shall be required of the commissioner as a prerequisite for the issuance of any injunction or restraining order pursuant to this section.
(3) Upon motion of a person subject to the stay, the court, after notice to the receiver and a hearing, may modify or grant relief from the stay, provided said person shall have the burden of proof and shall establish by clear and convincing evidence that such relief should be granted.
(4) All matters that may be stayed, enjoined or barred under this section and all matters involving its interpretation or operation shall remain within the exclusive jurisdiction of the domiciliary receivership court.
(b) The receiver may apply to any court outside of the state for the relief described in subsection (a) of this section.
(P.A. 79-382, S. 5; P.A. 98-214, S. 4.)
History: Sec. 38-425 transferred to Sec. 38a-907 in 1991; P.A. 98-214 amended Subsec. (a) to replace introductory language authorizing restraining orders and injunctions with language re the vital public interest in the conservation, rehabilitation and liquidation of insurance companies, et al., inserted introductory language following Subdiv. (a)(1) designator concerning the operation of, and prohibitions under, applications or petitions, redesignated former Subdivs. as Subparas., limited newly designated Subsec. (a)(1)(F) to actions or proceedings in which the insurer is a party and added new Subdivs. (2) to (4), inclusive, re bonds, relief from stay and jurisdiction, respectively.
Structure Connecticut General Statutes
Section 38a-904. (Formerly Sec. 38-422). - Application of provisions.
Section 38a-905. (Formerly Sec. 38-423). - Definitions.
Section 38a-906. (Formerly Sec. 38-424). - Jurisdiction and venue.
Section 38a-907. (Formerly Sec. 38-425). - Injunctions, orders and stays.
Section 38a-908. (Formerly Sec. 38-426). - Cooperation of officers, owners and employees. Penalties.
Section 38a-910. (Formerly Sec. 38-428). - Continuation of delinquency proceedings.
Section 38a-911. (Formerly Sec. 38-429). - Delinquency proceeding: Limitations and conditions.
Section 38a-912. (Formerly Sec. 38-430). - Seizure order by court.
Section 38a-913. (Formerly Sec. 38-431). - Confidentiality of proceedings.
Section 38a-914. (Formerly Sec. 38-432). - Grounds for rehabilitation.
Section 38a-917. (Formerly Sec. 38-435). - Actions by and against rehabilitator.
Section 38a-918. (Formerly Sec. 38-436). - Order of liquidation. Termination of rehabilitation.
Section 38a-919. (Formerly Sec. 38-437). - Grounds for liquidation.
Section 38a-922. (Formerly Sec. 38-440). - Dissolution of insurer.
Section 38a-923. (Formerly Sec. 38-441). - Powers of liquidator.
Section 38a-924. (Formerly Sec. 38-442). - Notice to creditors and others. Requirements. Exceptions.
Section 38a-925. (Formerly Sec. 38-443). - Duties of agents. Penalty.
Section 38a-926. (Formerly Sec. 38-444). - Actions by and against liquidator.
Section 38a-927. (Formerly Sec. 38-445). - List of assets.
Section 38a-928. (Formerly Sec. 38-446). - Fraudulent transfers prior to petition.
Section 38a-929. (Formerly Sec. 38-447). - Fraudulent transfer after petition.
Section 38a-930. (Formerly Sec. 38-448). - Voidable preferences and liens. Exceptions.
Section 38a-931. (Formerly Sec. 38-449). - Claims of holders of void or voidable rights.
Section 38a-932. (Formerly Sec. 38-450). - Set-offs and counterclaims. Accounting statements.
Section 38a-933. (Formerly Sec. 38-451). - Assessments.
Section 38a-933a. - Amounts recoverable. Affiliate liability. Timing of proceedings.
Section 38a-934. (Formerly Sec. 38-452.) - Reinsurer's liability.
Section 38a-935. (Formerly Sec. 38-453). - Recovery of premiums owed. Penalty. Appeals.
Section 38a-936. (Formerly Sec. 38-454). - Liquidator's proposal to distribute assets.
Section 38a-937. (Formerly Sec. 38-455). - Filing of claims.
Section 38a-938. (Formerly Sec. 38-456). - Proof of claim.
Section 38a-939. (Formerly Sec. 38-457). - Special claims.
Section 38a-941. (Formerly Sec. 38-459). - Disputed claims. Hearings. Procedure.
Section 38a-942. (Formerly Sec. 38-460). - Claims of surety.
Section 38a-943. (Formerly Sec. 38-461). - Secured creditor's claims.
Section 38a-944. (Formerly Sec. 38-462). - Priority of distribution of claims.
Section 38a-945. (Formerly Sec. 38-463). - Liquidator's recommendations to the court.
Section 38a-946. (Formerly Sec. 38-464). - Distribution of assets.
Section 38a-947. (Formerly Sec. 38-465). - Unclaimed and withheld funds.
Section 38a-948. (Formerly Sec. 38-466). - Termination of proceedings.
Section 38a-949. (Formerly Sec. 38-467). - Reopening liquidation.
Section 38a-951. (Formerly Sec. 38-469). - External audit of the receiver's books.
Section 38a-954. (Formerly Sec. 38-472). - Domiciliary liquidators in other states.
Section 38a-955. (Formerly Sec. 38-473). - Ancillary formal proceedings.
Section 38a-956. (Formerly Sec. 38-474). - Ancillary summary proceedings.
Section 38a-960. (Formerly Sec. 38-478). - Interstate priorities.
Section 38a-961. (Formerly Sec. 38-479). - Subordination of claims for noncooperation.
Section 38a-962. - Definitions.
Section 38a-962a. - Applicability.
Section 38a-962b. - Administrative supervision by the commissioner.
Section 38a-962d. - Prohibited activities during supervision. Prior approval.
Section 38a-962e. - Contested action. Appeal.
Section 38a-962f. - Judicial or other delinquency proceedings.
Section 38a-962g. - Regulations.
Section 38a-962h. - Supervision proceeding: Contact with commissioner allowed.
Section 38a-962i. - Immunity from liability.