Skip to Content
November 05, 2024 Clouds | 50°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 180E: Ancillary receiver of foreign insurer

Section 180E. Whenever under the laws of the commonwealth, an ancillary receiver is to be appointed in delinquency proceedings for an insurer not domiciled in the commonwealth, the court shall appoint the commissioner as ancillary receiver and authorize him in addition to other powers, to conserve its assets within the commonwealth upon the grounds that such foreign insurer has been placed in the hands of a receiver or that possession of such insurer has been taken by the person having supervision of such insurer in its domiciliary state, or that such insurer has had its property sequestrated in its domiciliary state or any other state. A decree to conserve the assets of a foreign insurer shall direct the receiver forthwith to take possession of the property of such insurer in the commonwealth and to conserve the same, subject to the order of the court. The pertinent provisions of section six, section one hundred and eighty B and section one hundred and eighty C shall apply in case of any application under this section.

The domiciliary receiver of an insurer domiciled in a reciprocal state, unless the court shall order otherwise, shall be vested with the title to all of the property, contracts and rights of action, and all of the books and records, of the insurer located in this commonwealth, and shall have the immediate right to recover balances due from local agents and any books and records of the insurer found in this commonwealth. He shall also be entitled to recover forthwith and reduce to possession the other assets of the insurer located in this commonwealth; provided, that, upon the appointment of an ancillary receiver in this commonwealth, such ancillary receiver shall during the ancillary receivership proceedings have the sole right to recover and reduce to possession such other assets. The ancillary receiver shall, as soon as practicable, liquidate from their respective securities such special deposit claims and secured claims as are approved and allowed in the ancillary proceedings in this commonwealth, and, under the orders of the court, shall pay from the assets in his hands as receiver the necessary costs and expenses of such proceedings, including compensation, and shall transfer all remaining assets to the domiciliary receiver. Except as otherwise provided herein, such ancillary receiver shall have the same powers and be subject to the same duties as a domiciliary receiver in this commonwealth.

Except as otherwise provided herein, the domiciliary receiver of an insurer domiciled in a reciprocal state may sue in this commonwealth to recover any assets of such insurer to which he may be entitled under the laws of this commonwealth.