HRS §431:15-302
Court order to take over an insurance company
When a court orders an insurance company to be rehabilitated, it appoints the state insurance commissioner to take control of the company's assets and manage them under court supervision. The order must be filed with the court or land records office, and it gives the commissioner legal ownership of the assets. The company must provide regular accountings to the court, and the order does not automatically break its contracts.
courts
The statute, as written — Rehabilitation orders
(a) An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this State, shall appoint the commissioner and the commissioner's successors in office the rehabilitator, and shall direct the rehabilitator forthwith to take possession of the assets of the insurer, and to administer them under the general supervision of the court. The filing or recording of the order with the clerk of the circuit court of the first judicial circuit or at the bureau of conveyances, shall impart the same notice as evidence of title. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator. (b) Any order issued under this section shall require accounting to the court by the rehabilitator. Accountings shall be at such intervals as the court specifies in its order. (c) Entry of an order of rehabilitation shall not constitute an anticipatory breach of any contracts of the insurer.
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