KANSAS STATUTES AND CODES

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

40-3617

Chapter 40.--INSURANCE Article 36.--IMPAIRED OR INSOLVENT INSURERS

40-3617. Same; order of court, contents; effect of filing or recordingorder; accounting by rehabilitator; effect of entry of order.(a) An order to rehabilitate the business of a domesticinsureror an alien insurer domiciled in this state shall appoint the commissioner andsuch commissioner's successors as the rehabilitator, and shall direct therehabilitator forthwith totake possession of the assets of the insurer, and to administer such assetsunder thegeneral supervision of the court. The filing or recording of the order withthe clerk of the district court of Shawnee county or register of deeds of thecounty in which the principal business of the company is conducted, or thecounty in which its principal office or place of business is located, shallimpart the same notice as a deed, bill of sale or other evidence of title dulyfiled or recorded with that recorder of deeds would have imparted. The orderto rehabilitate the insurer shall by operation of law vest title to all assetsof the insurer in the rehabilitator.

(b) Any order issued under this section shall require accounting to thecourt by the rehabilitator. Accountings shall be at such intervals as thecourt specifies in this order.

(c) Entry of an order of rehabilitation shall not constitute an anticipatorybreach of any contracts of the insurer nor shall it be grounds for retroactiverevocation or retroactive cancellation of any contracts of the insurer, unlesssuch revocation or cancellation is done by the rehabilitator pursuant toK.S.A. 40-3618.

History: L. 1991, ch. 125, § 13; July 1.