375.1174. Director may petition for liquidation, grounds--termination of rehabilitation proceedings, when, effect. - Missouri Statutes

Director may petition for liquidation, grounds--termination ofrehabilitation proceedings, when, effect.

375.1174. 1. Whenever the director believes furtherattempts to rehabilitate an insurer would substantially increasethe risk of loss to creditors, policyholders or the public, orwould be futile, the director may petition the court for an orderof liquidation. A petition under this subsection shall have thesame effect as a petition under section 375.1175. The courtshall permit the directors of the insurer to take such actions asare reasonably necessary to defend against the petition and mayorder payment from the estate of the insurer of such reasonablecosts and other expenses of defense as justice may require.

2. If the payment of policy obligations is suspended insubstantial part for a period of six months at any time after theappointment of the rehabilitator and the rehabilitator has notfiled an application for approval of a plan under subsection 4 ofsection 375.1168, the rehabilitator shall petition the court foran order of liquidation on grounds of insolvency.

3. The rehabilitator may at any time petition the court foran order terminating rehabilitation of an insurer. The courtshall also permit the directors of the insurer to petition thecourt for an order terminating rehabilitation of the insurer andmay order payment from the estate of the insurer of such costsand other expenses of such petition as justice may require. Ifthe court finds that grounds for rehabilitation under section375.1165 no longer exist, it shall order that the insurer berestored to possession of its property and the control of thebusiness. The court may also make that finding and issue thatorder at any time upon its own motion.

(L. 1991 H.B. 385, et al. § 64)