California Insurance Code ARTICLE 14 - Proceedings in Cases of Insolvency and Delinquency

  • Section 1010.
    (a) The provisions of this article shall apply to all persons, except the State Compensation Insurance Fund, subject to examination by the commissioner, or purporting to...
  • Section 1011.
    The superior court of the county in which the principal office of a person described in Section 1010 is located, upon the filing by the...
  • Section 1011.1.
    If a verified application is filed pursuant to Section 1011 that shows that the conditions set forth in subdivision (j) of Section 1011 exist and...
  • Section 1011.5.
    The consent described in subdivision (c) of Section 1011 shall be obtained by filing an application with the commissioner in a form to be prescribed...
  • Section 1012.
    Except in the case of an order issued based on a verified application showing the conditions in subdivision (j) of Section 1011 to exist, the...
  • Section 1013.
    Whenever it appears to the commissioner that any of the conditions set forth in section 1011 exist or that irreparable loss and injury to the...
  • Section 1014.
    Whenever the commissioner makes any seizure as provided in section 1013, it shall, on the demand of the commissioner, be the duty of the sheriff...
  • Section 1015.
    Immediately after such seizure, the commissioner shall institute a proceeding as provided for in section 1011 and thereafter shall proceed in accordance with the provisions...
  • Section 1016.
    (a) If at any time after the issuance of an order under Section 1011, or if at the time of instituting any proceeding under this article,...
  • Section 1017.
    (a) In the commissioner’s application for an order for the liquidation of a domestic corporation, or at any time thereafter, the commissioner may apply for, and...
  • Section 1018.
    The recording in the office of a county recorder of any county in the State of an order entered pursuant to section 1011, 1016 or...
  • Section 1019.
    Upon the issuance of an order of liquidation under section 1016, the rights and liabilities of any such person and of creditors, policyholders, shareholders and...
  • Section 1020.
    Upon the issuance of an order either under Section 1011 or 1016, or at any time thereafter, the court shall issue such other injunctions or...
  • Section 1021.
    (a) Upon the making of an order to liquidate the business of such person, the commissioner shall publish notice to its policyholders, creditors, shareholders, and all...
  • Section 1022.
    The notice shall be published in newspapers of general circulation in geographic areas pertinent to the liquidation. The notice shall reference a source, either the...
  • Section 1023.
    A claim must set forth, under oath, on the form prescribed by the commissioner:(a) The particulars thereof, and the consideration therefor.(b) Whether said claim is secured or...
  • Section 1024.
    Unless such claim is filed in the manner and within the time provided in section 1021, it shall not be entitled to filing or allowance,...
  • Section 1025.
    Claims founded upon unliquidated or undetermined demands must be filed within the time limit provided in this article for the filing of claims, but claims...
  • Section 1025.5.
    Notwithstanding the provisions of Sections 1021 to 1025, inclusive, the commissioner may, in lieu of requiring claimants to file separate claims:(a) File a claim himself or...
  • Section 1026.
    Whenever any person has a cause of action against an insured and such cause is covered by a liability policy, such person, if the insurer...
  • Section 1026.1.
    Where a claim arising out of a policy of insurance has been filed by a third party and approved by the liquidator and such claim...
  • Section 1027.
    A claim by a third party founded upon an insurance policy may be allowed by the liquidator without requiring such claim to be reduced to...
  • Section 1028.
    A judgment taken by default, or by collusion, against an insured shall not be considered as evidence, in the liquidation proceeding, either of the liability...
  • Section 1029.
    A claim of a secured claimant shall not be allowed in a sum greater than the excess over the value of the security of the...
  • Section 1030.
    The value of the security to be credited upon such claim shall be determined by an appraiser appointed by the liquidator and approved by the...
  • Section 1030.5.
    (a) The liquidator may require, as a condition of payment of the final liquidation dividend to a lender, or his assignee, who has filed a claim...
  • Section 1030.6.
    In any proceeding under this article, no agent shall be liable to the liquidator or conservator for unearned premiums uncollected by the agent, or unearned...
  • Section 1031.
    Mutual debts or mutual credits, whether arising out of one or more contracts between the person in liquidation under Section 1016 and any other person,...
  • Section 1032.
    When a claim is rejected by the commissioner, written notice of rejection shall be given by mail, addressed to the claimant at the address set...
  • Section 1033.
    (a) Claims allowed in a proceeding under this article shall be given preference in the following order:(1) Expense of administration.(2) All claims of the California Insurance Guarantee Association...
  • Section 1033.5.
    (a) The purpose of this section is to clarify the rights and obligations of policyholders, claimants, guaranty funds, including the California Insurance Guarantee Association, and the...
  • Section 1034.
    (a) A preference is a transfer of any of the property of the person proceeded against to or for the benefit of a creditor, for or...
  • Section 1034.1.
    (a) Every transfer made or suffered and every obligation incurred by a person proceeded against within one year prior to the filing of a successful petition...
  • Section 1035.
    (a) In any proceeding under this article, the commissioner may appoint and employ under his or her hand and official seal, special deputy commissioners, as his...
  • Section 1035.2.
    (a) The officers and employees of the Conservation and Liquidation Office are subject to all conflict-of-interest provisions and financial disclosure requirements that would apply if they...
  • Section 1035.5.
    Notwithstanding the provisions of Article 14 (commencing with Section 1010), with regard only to those insurers subject to this article:(a) Within 120 days of the issuance...
  • Section 1036.
    Notwithstanding any other provision of law, the provisions of Article 4 (commencing with Section 11040) of Chapter 1 of Part 1 of Division 3 of...
  • Section 1037.
    Upon taking possession of the property and business of any person in any proceeding under this article, the commissioner, exclusively and except as otherwise expressly...
  • Section 1038.
    Any application under section 1011 or 1016 shall be served upon the person named in such application in the manner prescribed by law for personal...
  • Section 1039.
    In lieu of the service required by section 1038, service may, upon application to said court, be made in such manner as the court directs...
  • Section 1040.
    At any time after an order is made under section 1011 or 1016, the commissioner may remove the principal office of the person proceeded against...
  • Section 1041.
    The commissioner shall be the custodian of all moneys collected by him or her or coming into his or her possession in the course of...
  • Section 1042.
    The commissioner and a special deputy commissioner appointed pursuant to section 1035 shall have the power to subpoena witnesses and examine them under oath upon...
  • Section 1043.
    In any proceeding under this article, the commissioner, as conservator or as liquidator, may, subject to the approval of said court, and subject to such...
  • Section 1044.
    In connection with a rehabilitation agreement under section 1043, which affects a life insurer, and in an agreement made for the reinsurance of the business...
  • Section 1045.
    If at any time after the issuance of an order under section 1011 affecting a life insurer issuing nonassessable policies on a reserve basis and...
  • Section 1046.
    Said mutualization plan shall include provisions for:(a) The acquisition by such insurer of all outstanding shares of its capital stock at a price and upon terms...
  • Section 1047.
    Said mutualization plan may include provisions:(a) Imposing a moratorium against the provisions of the life insurance policies issued by such insurer and then in force calling...
  • Section 1048.
    Upon formulation of said mutualization plan the commissioner shall submit the same to said court with his application for an order of said court directing...
  • Section 1049.
    Each policyholder of such insurer shall be entitled to one vote, regardless of the amount for which, or the number of policies under which, he...
  • Section 1050.
    In the event that said plan of mutualization is approved by said policyholders, the commissioner shall certify to the said court the fact of such...
  • Section 1051.
    After the expiration of the time fixed in the order provided for in section 1050, and upon the filing of such petition, said court shall...
  • Section 1052.
    Thereupon the commissioner shall:(a) Pay to each of such shareholders or his assignee or nominee, upon surrender of the shares held by such shareholder, the value...
  • Section 1053.
    Immediately upon the appointment of the directors as provided in subdivision (b) of section 1052, the directors theretofore holding office shall cease to hold office,...
  • Section 1054.
    Such insurer, after mutualization, shall be a continuation of the original insurer, and such mutualization shall not affect existing suits, rights or contracts except as...
  • Section 1055.
    The commissioner shall exercise the powers and discharge the duties, concerning any insurer so mutualized, that are applicable to domestic insurers issuing policies of the...
  • Section 1056.
    All costs and expenses connected with proceedings for the mutualization of such insurer shall be paid by the commissioner out of the funds of such...
  • Section 1056.5.
    Whenever money or other property is payable to any claimant out of the assets of any person under the provisions of Sections 1021 to 1033,...
  • Section 1057.
    In all proceedings under this article, the commissioner shall be deemed to be a trustee for the benefit of all creditors and other persons interested...
  • Section 1058.
    In any proceeding pending under the provisions of this article, the court in which such proceeding is pending shall have jurisdiction to hear and determine,...
  • Section 1059.
    The commissioner, in the performance of any of his duties under this article, shall be deemed to be a public officer acting in his official...
  • Section 1060.
    The commissioner shall transmit all of the following to the Governor, the Legislature, and to the committees of the Senate and Assembly having jurisdiction over...
  • Section 1061.
    In verification of the matters set forth in Section 1060 of this code, the Department of Finance shall, at least every two years or more...
  • Section 1062.
    In the event of the entry of an order under Section 1011 or 1016 of this article affecting any person having members, subscribers or policyholders,...

Last modified: October 22, 2018