17:30C-15 - Conduct of delinquency proceedings--domestic insurers - New Jersey Statutes

17:30C-15.  Conduct of delinquency proceedings--domestic insurers    a.  Whenever under the laws of this State a receiver is to be appointed in delinquency proceedings for a domestic insurer, the court shall appoint the commissioner as such receiver.  The court shall direct the commissioner forthwith to take possession of the assets of the insurer and to administer the  same under the orders of the court.

    b.  As domiciliary receiver, the commissioner shall be vested by operation of law, with the title to all property, contracts, and rights of action, and all of the books and records of the insurer wherever located, as of the date of  entry of the order directing him to rehabilitate or liquidate a domestic insurer and he shall have the right to recover the same and reduce the same to his possession.

    c.  The filing or recording of the order, directing possession to be taken,  or a certified copy thereof, in the office where instruments affecting title to  property are required to be filed or recorded, shall impart the same notice as  would be imparted by a deed, bill of sale, or other evidence of the title duly  filed or recorded.

    d.  The commissioner, as domiciliary receiver, shall be responsible on his official bond for the proper administration of all assets coming into his possession or control.  The court may at any time require an additional bond from him or his deputies, if deemed desirable for the protection of the assets.

    e.  Upon taking possession of the assets of an insurer, the domiciliary receiver shall, subject to the direction of the court, immediately proceed to conduct the business of the insurer or to take such steps as are authorized by the laws of this State for the purpose of liquidating, rehabilitating, reorganizing, or conserving the affairs of the insurer.

     L.1975, c. 113, s. 15, eff. June 3, 1975.