§ 58-30-275. Ancillary formal proceedings. - North Carolina Statutes

§58‑30‑275.  Ancillary formal proceedings.

(a)        If a domiciliaryliquidator has been appointed for an insurer not domiciled in this State, theCommissioner may file a petition with the Court requesting appointment asancillary receiver in this State:

(1)        If he finds thatthere are sufficient assets of the insurer located in this State to justify theappointment of an ancillary receiver;

(2)        If the protection ofcreditors or policyholders in this State so requires.

(b)        The Court may issuean order appointing an ancillary receiver in whatever terms it deems to beappropriate, including provisions for payment of the reasonable and necessaryexpenses of the proceedings. The filing or recording of the order with aregister of deeds in this State imparts the same notice as a deed, bill ofsale, or other evidence of title duly filed or recorded with that register ofdeeds.

(c)        When a domiciliaryliquidator has been appointed in a reciprocal state, then the ancillaryreceiver appointed in this State, may, whenever necessary, aid and assist thedomiciliary liquidator in recovering assets of the insurer located in thisState. The ancillary receiver shall, as soon as practicable, liquidate fromtheir respective securities those special deposit claims and secured claims whichare proved and allowed in the ancillary proceedings in this State, and shallpay the necessary expenses of the proceedings. He shall promptly transfer allremaining assets, books, accounts, and records to the domiciliary liquidator.Subject to this section, the ancillary receiver and his deputies shall have thesame powers and be subject to the same duties with respect to theadministration of assets as a liquidator of an insurer domiciled in this State.

(d)        When a domiciliaryliquidator has been appointed in this State, ancillary receivers appointed inreciprocal states shall have, as to assets and books, accounts, and otherrecords in their respective states, corresponding rights, duties and powers tothose provided in subsection (c) of this section for ancillary receiversappointed in this State. (1989, c. 452, s. 1; 1993 (Reg. Sess., 1994), c. 678,s. 17.)