§ 58-30-65. Court's seizure order. - North Carolina Statutes

§58‑30‑65.  Court's seizure order.

(a)        The Commissionermay file in the Court a petition alleging, with respect to a domestic insurer:

(1)        That there existgrounds that justify a judicial order for a formal delinquency proceedingagainst an insurer under this Article;

(2)        That the interestsof policyholders, creditors, or the public will be endangered by delay; and

(3)        The contents of anorder deemed by the Commissioner to be necessary.

(b)        Upon a filing undersubsection (a) of this section, the Court may issue forthwith, ex parte,the requested order, that directs the Commissioner to take possession andcontrol of all or a part of the property, books, accounts, documents, and otherrecords of an insurer, and of the premises occupied by it for transaction ofits business, and that, until further order of the Court, enjoins the insurerand its officers, managers, agents, and employees from disposing of itsproperty and from transacting its business except with the written consent ofthe Commissioner.

(c)        The Court shallspecify in the order what its duration shall be, which shall be such time asthe Court considers necessary for the Commissioner to ascertain the conditionof the insurer.  On motion of either party or on its own motion, the Court mayfrom time to time hold such hearings as it considers desirable after suchnotice as it considers appropriate; and may extend, shorten, or modify theterms of the seizure order.  The Court shall vacate the seizure order if theCommissioner fails to commence a formal proceeding under this Article afterhaving a reasonable opportunity to do so.  An order of the Court pursuant to aformal proceeding under this Article shall ipso facto vacate the seizureorder.

(d)        Entry of a seizureorder under this section does not constitute an anticipatory breach of anycontract of the insurer.

(e)        An insurer subjectto an ex parte order under this section may petition the Court at anytime after the issuance of such order for a hearing and review of the order. The Court shall hold such a hearing and review not more than 15 days after therequest.  A hearing under this subsection may be held privately in chambers,and it shall be so held if the insurer proceeded against so requests.

(f)         If, at any timeafter the issuance of such an order, it appears to the Court that any personwhose interest is or will be substantially affected by the order did not appearat the hearing and has not been served, the Court may order that notice begiven.  An order that notice be given does not stay the effect of any orderpreviously issued by the Court. (1989, c. 452, s. 1.)