§ 31A-27a-301. Rehabilitation orders.

(1)

(a) An order to rehabilitate the business of an insurer shall:

(i) appoint the commissioner and the commissioner's successors in office as the rehabilitator;

(ii) direct the rehabilitator to:

(A) take possession and title of the assets of the insurer; and

(B) administer the assets of the insurer under the general supervision of the court; and

(iii) require accountings to the receivership court by the rehabilitator.

(b) Accountings shall be at the intervals the receivership court specifies in its order, but no less frequently than semiannually.

(c) Each accounting shall include a report concerning the rehabilitator's opinion as to:

(i) the likelihood that a plan under Section 31A-27a-303 will be prepared by the rehabilitator; and

(ii) the timetable for preparing the plan described in Subsection (1)(c)(i).

(2)

(a) In recognition of the need for a prompt and final resolution for all persons affected by a plan of rehabilitation, any appeal from an order of rehabilitation or an order approving a plan of rehabilitation shall be heard on an expedited basis.

(b) A stay of an order of rehabilitation or an order approving a plan of rehabilitation may not be granted unless the appellant demonstrates that extraordinary circumstances warrant delaying the recovery under the plan of rehabilitation of all other persons, including policyholders.

(c) If a plan of rehabilitation provides an appropriate mechanism for adjustment in the event of an adverse ruling from an appeal, a stay may not be granted.

Enacted by Chapter 309, 2007 General Session