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

40-3624

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

      40-3624.   Same; dissolution of corporate existence of insurer; permittingsale of the corporate existence; order ofcourt.The commissioner may petition for an order: (a) Dissolving thecorporate existence of a domestic insurer, or the United States branch of analien insurer domiciled in this state at the time the commissioner applies fora liquidation order. The court may order dissolution of thecorporation uponpetition by the commissioner upon or after the granting of a liquidation order.If the dissolution has not previously been ordered, it shall be effected byoperation of law upon the discharge of the liquidator if the insurer isinsolvent but may be ordered by the court upon the discharge of the liquidatorif the insurer is under a liquidation order for some other reason; or

      (b)   permitting the sale of the corporate existence of a domesticinsurer, together with any of its licenses to do business, despite the entry ofan order of liquidation. The court may permit the sale of such corporateexistence upon or after the granting of a liquidation order. The proceeds fromthe sale of the corporation shall become a part of the general assets of theestate in liquidation. The corporation and its licenses shall thereafter befree and clear from the claims or interests of all claimants, creditors,policyholders and stockholders of the corporation under liquidation. Ifpermission to sell the corporation is not granted, the court shall orderdissolution of the corporation as provided in subsection (a).

      History:   L. 1991, ch. 125, § 20;L. 1993, ch. 6, § 1; July 1.