Kansas Statutes
Article 36 - Impaired Or Insolvent Insurers
40-3649 Same; liquidation of assets; order of court; grounds; notice; liquidator appointed in another state; petition to federal district court; payment of claims to residents.

40-3649. Same; liquidation of assets; order of court; grounds; notice; liquidator appointed in another state; petition to federal district court; payment of claims to residents. (a) If no domiciliary receiver has been appointed, the commissioner may apply to the district court of Shawnee county by verified petition for an order directing such receiver to liquidate the assets found in this state of a foreign insurer or an alien insurer not domiciled in this state, on any of the following grounds:
(1) Any of the grounds in K.S.A. 40-3616 or 40-3621; or
(2) any of the grounds specified in K.S.A. 40-3648(a)(2) through (4), inclusive.
(b) When an order is sought under subsection (a), the court shall cause the insurer to be given such notice and time to respond thereto as is reasonable under the circumstances.
(c) If it appears to the court that the best interests of creditors, policyholders and the public require, the court may issue an order to liquidate in whatever terms it shall deem appropriate. The filing or recording of the order with the clerk of the court or the register of deeds of the county in which the principal business of the company is located or the county in which its principal office or place of business is located, shall impart the same notice as a deed, bill of sale or other evidence of title duly filed or recorded with the register of deeds would have imparted.
(d) If a domiciliary liquidator is appointed in a reciprocal state while a liquidation is proceeding under this section, the liquidator under this section shall thereafter act as ancillary receiver under K.S.A. 40-3652. If a domiciliary liquidator is appointed in a nonreciprocal state while a liquidation is proceeding under this section, the liquidator under this section may petition the court for permission to act as ancillary receiver under K.S.A. 40-3651.
(e) On the same grounds as are specified in subsection (a), the commissioner may petition any appropriate federal district court to be appointed receiver to liquidate that portion of the insurer's assets and business over which the court will exercise jurisdiction, or any lesser part thereof the commissioner deems desirable for the protection of the policyholders and creditors in this state.
(f) The court may order the commissioner, when the assets of a foreign or alien insurer have been liquidated under this section, to pay claims of residents of this state against the insurer under such rules as to the liquidation of insurers under this act as are otherwise compatible with the provisions of this section.
History: L. 1991, ch. 125, ยง 45; July 1.

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Structure Kansas Statutes

Kansas Statutes

Chapter 40 - Insurance

Article 36 - Impaired Or Insolvent Insurers

40-3602 Insolvent insurers; offset of unearned premiums by agent; contract provisions with agent, application.

40-3605 Citation of act.

40-3606 Application of act.

40-3607 Definitions.

40-3608 Delinquency proceedings; commencement and jurisdiction to determine; authority of court; actions to be brought in district court of Shawnee county.

40-3609 Same; relief granted by court upon application of receiver; limitation.

40-3610 Same; persons required to cooperate with commissioner; definitions; civil and criminal penalties and supervision or revocation of licenses for failure to cooperate or obstruction or interference with commissioner.

40-3611 Same; proceeding commenced prior to effective date of act.

40-3612 Same; restrictions upon insurers subject to delinquency proceedings.

40-3613 Same; supervision of insurer by commissioner, grounds for, determination and order of commissioner; appointment of supervisor; conditions imposed upon insurer; service of notice of hearings and orders; civil penalties for violation of supervi...

40-3614 Same; seizure of insurer; petition of commissioner; order of court; vacation of order; petition for hearing and review of order; failure to give notice to affected person.

40-3615 Confidentiality of records and documents in proceedings under 40-3613 and 40-3614; exceptions.

40-3616 Rehabilitation of insurer; application by commissioner for order of court; grounds.

40-3617 Same; order of court, contents; effect of filing or recording order; accounting by rehabilitator; effect of entry of order.

40-3618 Same; appointment of special deputy, counsel, clerks and assistants; payment of costs and expenses; advisory committee; authority and responsibility of rehabilitator; illegal or improper conduct detrimental to insurer, remedies; plans for reo...

40-3619 Same; litigation pending at time of entry of rehabilitation order, stay of action or proceeding; duties of court and rehabilitator; statutes of limitation and defenses of laches; rights of guaranty associations; rights of federal home loan ba...

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.

40-3621 Liquidation of insurer; petition by commissioner; grounds.

40-3622 Same; contents of order; authority and responsibility of liquidator; effect of filing or recording of order; rights and liabilities of parties; insolvency of insurer, findings, petition and declaration by court; accounting by liquidator; appe...

40-3623 Same; continuation of insurance policies in effect at time of order of liquidation.

40-3624 Same; dissolution of corporate existence of insurer; permitting sale of the corporate existence; order of court.

40-3625 Same; authority and responsibility of liquidator; limitation.

40-3626 Same; notice of liquidation order; persons and associations to whom required; publication of notice; notice to specify date before which claims must be filed; change of address of claimants; distribution of assets conclusive if notice given i...

40-3627 Same; no actions brought, maintained or further presented against insurer or liquidator after order appointing liquidator; full faith and credit given to orders of other states; intervention in action pending in another state; actions or proc...

40-3628 Same; list of insurer's assets; time for preparation; amending and supplementing list; filing of list.

40-3629 Transfers of property and obligations incurred within one year prior to filing of petition for rehabilitation or liquidation; fraudulent transfers and obligations incurred; fraudulent transactions of insurers with reinsurers; liability of per...

40-3630 Transfer of property after petition for rehabilitation or liquidation filed; validity; judicial sales of property; liability of person receiving property fraudulently transferred; limitation.

40-3631 Transfer of property; preferences; rights of parties; jurisdiction of district court of Shawnee county; limitation on avoidance of preference.

40-3632 Claims of creditors; allowance; avoidance; filing.

40-3633 Mutual debts and mutual credits; setoff; accounting statements; debts currently due and payable.

40-3634 Payment of reinsurance upon insolvency of ceding insurer.

40-3635 Insurer determined insolvent; proposal to disburse assets; application by liquidator.

40-3636 Claims; proof of claims, form and filing; late filings.

40-3637 Same; proof of claim, form and information required; supplementary evidence and information may be required; judgments and orders; claims of guaranty associations.

40-3638 Same; claims which may be allowed; limitations.

40-3639 Same; denial of claims; objections to denial; claims secured by the undertaking of another, rights to prove and file.

40-3640 Same; value of security held by secured creditor.

40-3641 Claims; priority of distribution; classes established.

40-3642 Same; report and recommendations of liquidator for allowance of claims; contents of report; action by court; claims under insurance policy.

40-3643 Unclaimed fund; deposit in accordance with unclaimed property act.

40-3644 Discharge of liquidator; orders of court.

40-3645 Liquidation proceedings; reopening after termination; order of court.

40-3646 Same; disposition of records; direction by court.

40-3647 Receiverships; audits; filing and payment of costs.

40-3648 Foreign insurers; conservation of property; grounds; notice; terms and filing of court order; liquidation; termination of conservation.

40-3649 Same; liquidation of assets; order of court; grounds; notice; liquidator appointed in another state; petition to federal district court; payment of claims to residents.

40-3650 Same; authority of domiciliary liquidator; authority of commissioner if insurer not domiciled in reciprocal state; filing of claims.

40-3651 Same; appointment of ancillary receiver; order of court; authority of ancillary receiver.

40-3652 Same; supervision or seizure proceedings, authority of commissioner.

40-3653 Liquidation proceedings; begun in state against insurer domiciled in state; claimants residing outside state; filing, proving and allowance of claims.

40-3654 Same; begun in reciprocal state against insurer domiciled in that state; claimants residing in this state; filing, proving and allowance of claims.

40-3655 Same; no attachment, garnishment or levy of execution during pendency of liquidation proceedings.

40-3656 Same; proceeding in this state involving reciprocal states; order of distribution; equal priority of payment of claims from general assets; special deposit claims; secured claims.

40-3657 Same; ancillary receiver in another state or foreign country failing to transfer assets; priority of claims filed in such ancillary receivership; exceptions.

40-3658 Severability of act.

40-3659 Qualified financial contracts; procedures; duties of receiver.