§431:15-402  Liquidation of property of

foreign or alien insurers found in this State.  (a)  If no domiciliary

receiver has been appointed, the commissioner may apply to the circuit court of

the first judicial circuit by verified petition for an order directing the

commissioner to liquidate the assets found in this State of a foreign insurer,

or an alien insurer not domiciled in this State, on any of the following

grounds:

     (1)  Any of the grounds in section 431:15-301 or

section 431:15-306; or

     (2)  Any of the grounds specified in section

431:15-401(a)(2) through (a)(4).

     (b)  When an order is sought under subsection

(a), the court may require an appropriate notice to the insurer and hearing. 

If it appears to the court that the best interests of creditors, policyholders,

and the public so require, the court may issue an order to liquidate the

insurer in whatever terms it considers appropriate.  The filing or recording of

the order with the bureau of conveyances imparts the same notice as an evidence

of title.

     (c)  If a domiciliary liquidator is appointed

in a reciprocal state while a liquidation is proceeding under this section, the

liquidator under this section shall thereafter act as ancillary receiver under

section 431:15-404.  If a domiciliary liquidator is appointed in a

nonreciprocal state while a liquidation is proceeding under this section, the

liquidator under this section may petition the court for permission to act as

ancillary receiver under section 431:15-404.

     (d)  On the same grounds as specified in

subsection (a), the commissioner may petition any appropriate federal district

court to be appointed receiver to liquidate that portion of the insurer's

assets and business over which the court will exercise jurisdiction, or any

lesser part thereof that the commissioner deems desirable for the protection of

the policyholders and creditors in this State.

     (e)  The court may order the commissioner, when

the commissioner has liquidated assets of a foreign or alien insurer under this

section, to pay claims of residents of this State against the insurer under

such rules as to the liquidation of insurers under this article as are

otherwise compatible with the provisions of this section. [L 1987, c 347, pt of

§2]