reglab/statecodes huggingface dataset:
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 2 - Proceedings › Section 205 - Decision and appeals.

31A-27a-205.
Decision and appeals.
(1) The receivership court shall enter judgment on the petition to commence formal delinquency proceeding within 15 days after the day on which the evidence is concluded.
(2)
(a) An order entered pursuant to Subsection (1) is final when entered.
(b) An appeal shall be:
(i) handled on an expedited basis; and
(ii) taken within five days of the day on which judgment is entered.
(3)
(a) Absent entry of an order staying the order pursuant to Subsection (4), the order has full force and effect and the receiver shall carry out the order's terms and this chapter.
(b) A request for reconsideration, review, or appeal, or posting of a bond, may not dissolve or stay the judgment.
(4)
(a) The following motions shall first be presented to the receivership court:
(i) a motion for a stay of a judgment;
(ii) a motion for approval of a supersedes bond; or
(iii) a motion for other relief pending appeal.
(b) Except for a grant of a petition for rehabilitation which shall remain in effect pending a decision on appeal, during the pendency of an appeal the receivership court may do any of the following in accordance with the Utah Rules of Civil Procedure:
(i) suspend an order entered under Subsection (1);
(ii) modify an order entered under Subsection (1); or
(iii) make any other appropriate order governing the enforceability of an order entered under Subsection (1).
(c) The receivership court or an appellate court to which the matter is presented may condition any relief it grants under this Subsection (4) on the filing of a bond or other appropriate security with the receivership court.
(5) Section 31A-27a-114 applies to all acts taken during the pendency of an appeal regardless of the appeal's ultimate disposition.
(6) The reversal or modification on appeal of an order of rehabilitation or liquidation does not affect the validity of an act of the receiver pursuant to the order unless the order is stayed pending appeal.
Amended by Chapter 297, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 2 - Proceedings › Section 208 - Entry of order.

31A-27a-208.
Entry of order.
(1) If the commissioner establishes any of the grounds provided in Section 31A-27a-207, the receivership court shall:
(a) grant the petition; and
(b) issue the order of rehabilitation or liquidation requested in the petition.
(2) Upon the issuance of the order, the commissioner shall forward a copy of the order by first-class mail or electronic communication as permitted by the receivership court to the commissioners and guaranty associations in states in which the insurer did business.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 2 - Proceedings › Section 209 - Effect of order of rehabilitation or liquidation.

Superseded 7/1/2024
31A-27a-209.
Effect of order of rehabilitation or liquidation.
(1) The filing or recording of an order of receivership with the following imparts the same notice as a deed, bill of sale, or other evidence of title filed or recorded would have imparted:
(a) the Third District Court for Salt Lake County;
(b) the recorder of deeds of the county in which the principal business of the insurer is conducted; or
(c) in the case of real estate, with the recorder of deeds of the county where the property is located.
(2) The filing of a petition commencing delinquency proceedings under this chapter or the entry of an order of seizure, rehabilitation, or liquidation does not constitute a breach or an anticipatory breach of any contract or lease of the insurer.
(3)
(a) The receiver may appoint one or more special deputies.
(b) A special deputy:
(i) has the powers and responsibilities of the receiver granted under this section, unless specifically limited by the receiver; and
(ii) serves at the pleasure of the receiver.
(c) The receiver may employ or contract with:
(i) legal counsel;
(ii) one or more actuaries;
(iii) one or more accountants;
(iv) one or more appraisers;
(v) one or more consultants;
(vi) one or more clerks;
(vii) one or more assistants; and
(viii) other personnel as may be considered necessary.
(d) A special deputy or other person with whom the receiver contracts under this Subsection (3):
(i) is considered to be an agent of the commissioner only in the commissioner's capacity as receiver; and
(ii) is not considered an agent of the state.
(e) The provisions of any law governing the procurement of goods and services by the state do not apply to a contract entered into by the commissioner as receiver.
(f) The compensation of a special deputy, employee, or contractor and all expenses of taking possession of the insurer and of conducting the receivership shall be:
(i) determined by the receiver, with the approval of the receivership court in accordance with Section 31A-27a-115; and
(ii) paid out of the property of the insurer.
(g)
(i) If the receiver, in the receiver's sole discretion, considers it necessary to the proper performance of the receiver's duties under this chapter, the receiver may appoint an advisory committee of policyholders, claimants, or other creditors including guaranty associations.
(ii) The committee described in this Subsection (3)(g) serves:
(A) at the pleasure of the receiver; and
(B) without compensation and without reimbursement for expenses.
(iii) The receiver or the receivership court in proceedings conducted under this chapter may not appoint any other committee of any nature.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 2 - Proceedings › Section 209 - Effect of order of rehabilitation or liquidation.

Effective 7/1/2024
31A-27a-209.
Effect of order of rehabilitation or liquidation.
(1) The filing or recording of an order of receivership with the following imparts the same notice as a deed, bill of sale, or other evidence of title filed or recorded would have imparted:
(a) the court;
(b) the recorder of deeds of the county in which the principal business of the insurer is conducted; or
(c) in the case of real estate, with the recorder of deeds of the county where the property is located.
(2) The filing of a petition commencing delinquency proceedings under this chapter or the entry of an order of seizure, rehabilitation, or liquidation does not constitute a breach or an anticipatory breach of any contract or lease of the insurer.
(3)
(a) The receiver may appoint one or more special deputies.
(b) A special deputy:
(i) has the powers and responsibilities of the receiver granted under this section, unless specifically limited by the receiver; and
(ii) serves at the pleasure of the receiver.
(c) The receiver may employ or contract with:
(i) legal counsel;
(ii) one or more actuaries;
(iii) one or more accountants;
(iv) one or more appraisers;
(v) one or more consultants;
(vi) one or more clerks;
(vii) one or more assistants; and
(viii) other personnel as may be considered necessary.
(d) A special deputy or other person with whom the receiver contracts under this Subsection (3):
(i) is considered to be an agent of the commissioner only in the commissioner's capacity as receiver; and
(ii) is not considered an agent of the state.
(e) The provisions of any law governing the procurement of goods and services by the state do not apply to a contract entered into by the commissioner as receiver.
(f) The compensation of a special deputy, employee, or contractor and all expenses of taking possession of the insurer and of conducting the receivership shall be:
(i) determined by the receiver, with the approval of the receivership court in accordance with Section 31A-27a-115; and
(ii) paid out of the property of the insurer.
(g)
(i) If the receiver, in the receiver's sole discretion, considers it necessary to the proper performance of the receiver's duties under this chapter, the receiver may appoint an advisory committee of policyholders, claimants, or other creditors including guaranty associations.
(ii) The committee described in this Subsection (3)(g) serves:
(A) at the pleasure of the receiver; and
(B) without compensation and without reimbursement for expenses.
(iii) The receiver or the receivership court in proceedings conducted under this chapter may not appoint any other committee of any nature.
Amended by Chapter 401, 2023 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 3 - Rehabilitation › Section 301 - Rehabilitation orders.

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
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 3 - Rehabilitation › Section 302 - Powers and duties of the rehabilitator.

31A-27a-302.
Powers and duties of the rehabilitator.
(1)
(a) With court approval, the rehabilitator may take an action the rehabilitator considers necessary or appropriate to reform and revitalize the insurer, including:
(i) canceling:
(A) a policy;
(B) an insurance or reinsurance contract, other than life insurance, health insurance, or an annuity;
(C) a surety bond; or
(D) a surety undertaking; or
(ii) transferring to a solvent assuming insurer:
(A) a policy;
(B) an insurance or reinsurance contract;
(C) a surety bond; or
(D) a surety undertaking.
(b) The rehabilitator has all the powers of the directors, officers, and managers of the insurer, whose authority is suspended, except as redelegated by the rehabilitator.
(c) The rehabilitator has full power to:
(i) direct and manage the insurer;
(ii) hire and discharge employees; and
(iii) deal with the property and business of the insurer.
(d) The rehabilitator is not liable as the result of good faith issuance or renewal of a policy while in rehabilitation.
(2) The rehabilitator may pursue all appropriate legal remedies on behalf of the insurer if it appears to the rehabilitator that there is or has been criminal or tortious conduct, or breach of a contractual or fiduciary obligation detrimental to the insurer by an officer, a manager, an agent, a broker, an employee, an affiliate, or other person.
(3)
(a) The rehabilitator may assert all defenses available to the insurer as against a third person, including statutes of limitations, statutes of frauds, and the defense of usury.
(b) A waiver of a defense by the insurer after a petition pursuant to Section 31A-27a-201 or 31A-27a-207 is filed does not bind the rehabilitator.
(4) The enumeration of the powers and authority of the rehabilitator in this section:
(a) may not be construed as a limitation upon the rehabilitator; and
(b) does not exclude in any manner the right to do other acts:
(i) not specifically enumerated or otherwise provided for; and
(ii) as may be necessary or appropriate for the accomplishment of or in aid of the purpose of rehabilitation.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 3 - Rehabilitation › Section 304 - Termination of rehabilitation.

31A-27a-304.
Termination of rehabilitation.
(1)
(a) The rehabilitator may move for an order of liquidation whenever the rehabilitator believes further attempts to rehabilitate an insurer would:
(i) substantially increase the risk of loss to creditors, policyholders, or the public; or
(ii) be futile.
(b) In accordance with Section 31A-27a-305, the rehabilitator or the rehabilitator's designated representative shall coordinate with an affected guaranty association and any national association of guaranty associations to plan for transition to liquidation.
(2) The rehabilitator shall petition the receivership court for an order of liquidation or seek an order, on good cause shown, for a longer suspension period if:
(a) the payment of a policy obligation is suspended in substantial part for a period of six months at any time after the appointment of the rehabilitator; and
(b) the rehabilitator has not filed an application for approval of a plan under Section 31A-27a-303.
(3)
(a) The receivership court may enter an order terminating rehabilitation of an insurer:
(i) on petition from the rehabilitator, which may be made at any time;
(ii) on petition from the directors of the insurer, which may be made at any time; or
(iii) on the receivership court's own motion.
(b) Subject to Section 31A-27a-801, if the receivership court finds that rehabilitation is accomplished and that grounds for rehabilitation under Section 31A-27a-207 no longer exist, the receivership court shall order that the insurer be restored to:
(i) title and possession of its property; and
(ii) the control of the business.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 4 - Liquidation › Section 401 - Liquidation orders.

31A-27a-401.
Liquidation orders.
(1)
(a) An order to liquidate the business of an insurer shall:
(i) appoint the commissioner and any successor in office as the liquidator; and
(ii) direct the liquidator to:
(A) take possession of the property of the insurer; and
(B) administer the property subject to this chapter.
(b) As of the entry of the final order of liquidation, the liquidator is vested by operation of law with the title to the following, wherever located, of the insurer ordered liquidated:
(i) all property;
(ii) all contracts;
(iii) all rights of action; and
(iv) all records.
(2) Upon issuance of the order of liquidation, the rights and liabilities of the insurer and of its creditors, policyholders, shareholders, members, and all other persons interested in its estate shall become fixed as of the day on which the order of liquidation is entered:
(a) except as provided in Sections 31A-27a-402, 31A-27a-403, and 31A-27a-605; and
(b) unless otherwise fixed by the liquidation court.
(3) An order to liquidate the business of an alien insurer in this state shall be in the same terms and have the same legal effect as an order to liquidate a domestic insurer.
(4)
(a) Whenever applicable, a petition for liquidation should include a request for a judicial declaration or finding of insolvency.
(b) After providing proper notice and hearing, the receivership court may at any time make the declaration of insolvency.
(5) If an order of liquidation is set aside upon appeal, the insurer is not released from delinquency proceedings except in accordance with Section 31A-27a-801.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 4 - Liquidation › Section 407 - Duties of agents.

31A-27a-407.
Duties of agents.
(1)
(a) At the request of the liquidator, an agent receiving notice of the entry of the liquidation order shall provide notice of that order:
(i) on a form prescribed by the liquidator;
(ii) to:
(A) each policyholder of a policy issued through the agent; and
(B) other person named in a policy issued through the agent; and
(iii) within:
(A) 15 days of the day on which the agent receives the notice; or
(B) a longer time as the liquidator may require.
(b) Within 30 days of the mailing required by Subsection (1)(a), the agent shall provide as prescribed by the liquidator:
(i) a certification of mailing; and
(ii) a list of insureds to which notice is provided.
(2)
(a) A person who represents the insurer as an agent and receives notice in the form prescribed in Section 31A-27a-406, shall, within 30 days of the day on which the notice being sent, provide to the liquidator:
(i) the information the agent is required to provide pursuant to Section 31A-27a-110, if any;
(ii) the information in the agent's records related to any policy issued by the insurer through the agent; and
(iii) if the agent is a general agent, the information in the general agent's records related to any policy issued by the insurer through an agent under contract to the general agent, including the name and address of the subagent.
(b) Except where the ownership of the expiration of the policy is transferred to another, a policy is considered issued through an agent if the agent:
(i) has a property interest in the expiration of the policy; or
(ii) has had in the agent's possession a copy of the declarations of the policy at any time during the life of the policy.
(3) If an agent fails to provide information to the liquidator as required in Subsection (2), the commissioner after holding a hearing may:
(a) impose against the agent a penalty of not more than $1,000; and
(b) suspend the agent's license.
(4) Notwithstanding an agent's property interest, if any, in the expiration of a policy, the liquidator has the exclusive power to determine whether, and under what terms, to cancel or transfer the policy.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 5 - Asset Recovery › Section 502 - Recovery from affiliates.

31A-27a-502.
Recovery from affiliates.
(1)
(a) If a receivership order is entered under this chapter, the receiver appointed under the receivership order may recover on behalf of the insurer from an affiliate as defined in Subsection 31A-1-301(5) the value received by the affiliate at any time during the five years preceding the filing date of the delinquency proceedings.
(b) A person disputing that person's status as an affiliate shall prove by clear and convincing evidence the person's nonaffiliate status.
(c) Recovery from an affiliate is subject to the limitations of Subsections (2) and (6).
(2) If the insurer is a stock corporation, a stock dividend distribution to an affiliate is not recoverable if the recipient shows by a preponderance of the evidence that:
(a) when paid, the stock dividend distribution to an affiliate is lawful and reasonable;
(b) the department had notice to and approved the stock dividend; and
(c) the insurer did not know and could not reasonably have known that the stock dividend distribution to the affiliate might adversely affect the solvency of the insurer.
(3) The maximum amount recoverable under this section is the amount needed to pay all claims under the receivership:
(a) in excess of all other available recoverable assets; and
(b) reduced for each recipient affiliate by any amount that the recipient affiliate pays to any receiver under similar laws of other states.
(4)
(a) A person who is an affiliate at the time value is received is liable up to the amount of value received by the affiliate.
(b) If two or more affiliates are liable regarding the same value received, they are jointly and severally liable.
(5) If any affiliate liable under Subsection (4) is insolvent or unable to pay within one year, all affiliates at the time the value is received are jointly and severally liable for any resulting deficiency in the amount that would have been recovered from the nonpaying affiliate.
(6) This section does not enlarge the personal liability of a director under existing law.
(7) An action or proceeding under this section may not be commenced after the earlier of:
(a) six years after the day on which a receiver is appointed; or
(b) the day on which the receivership is terminated.
Amended by Chapter 297, 2011 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 5 - Asset Recovery › Section 503 - Unauthorized postpetition transfers.

31A-27a-503.
Unauthorized postpetition transfers.
(1) Except as otherwise provided in this section, the receiver may avoid a transfer of an interest of the insurer in property, or an obligation incurred by the insurer, that is:
(a) made or incurred after the day on which a petition for receivership is filed; and
(b) not authorized by the receiver and approved by the receivership court.
(2) Except to the extent that a transfer or obligation voidable under this section is otherwise voidable under this chapter, a transferee or obligee of a transfer or obligation described in Subsection (1) has a lien on or may retain, at the option of the receivership court, an interest transferred or may enforce an obligation incurred, as the case may be:
(a) if the transferee or obligee takes it for value and in good faith; and
(b) to the extent that the transferee or obligee gave value to the insurer in exchange for the transfer or obligation.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 5 - Asset Recovery › Section 506 - Fraudulent transfers and obligations.

31A-27a-506.
Fraudulent transfers and obligations.
(1) For purposes of this section:
(a) A "transfer":
(i) is made when the transfer is so perfected that a bona fide purchaser from the insurer against whom applicable law permits the transfer to be perfected cannot acquire an interest in the property transferred that is superior to the interest in the property of the transferee; or
(ii) if the transfer is not perfected as provided in Subsection (1)(a)(i) before the commencement of the delinquency proceeding, is considered made immediately before the day on which the initial filing of the petition commencing delinquency proceedings is filed.
(b) "Value" means property or satisfaction or securing of a present or antecedent debt of the insurer.
(2)
(a) If the conditions of Subsection (2)(b) are met, the receiver may avoid the following:
(i) a transfer of an interest of the insurer in property;
(ii) a reinsurance transaction; or
(iii) an obligation incurred by an insurer.
(b) Subsection (2)(a) applies if:
(i) the transfer or obligation is made or incurred on or within two years before the day on which the initial filing of a petition commencing delinquency proceedings is filed under this chapter; and
(ii) the insurer voluntarily or involuntarily:
(A) makes the transfer or incurs the obligation with actual intent to hinder, delay, or defraud a person to which the insurer is or becomes indebted on or after the day on which the transfer is made or the obligation is incurred; or
(B) receives less than a reasonably equivalent value in exchange for the transfer or obligation.
(3) Except to the extent that a transfer or obligation voidable under this section is voidable under other provisions of this chapter, a transferee or obligee of a transfer or obligation voidable under this section that takes for value and in good faith:
(a) as the case may be:
(i) has a lien on or may retain any interest transferred; or
(ii) may enforce any obligation incurred; and
(b) to the extent that the transferee or obligee gave value to the insurer in exchange for the transfer or obligation.
(4) If a reinsurance transaction is avoided under this section:
(a) the receiver shall tender to the reinsurer the value of any consideration transferred to the insurer in connection with the transaction less the amount of matured and liquidated liabilities owing by the reinsurer to the estate; and
(b) the parties shall be returned to their relative positions before the implementation of the transaction avoided.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 5 - Asset Recovery › Section 507 - Receiver as lien creditor.

Effective 5/9/2017
31A-27a-507.
Receiver as lien creditor.
(1) The receiver may avoid a transfer of or lien on the property of, or obligation incurred by, an insurer that the insurer or a policyholder, creditor, member, or stockholder of the insurer:
(a) may have avoided without regard to any knowledge of:
(i) the receiver;
(ii) the commissioner;
(iii) the insurer; or
(iv) a policyholder, creditor, member, or stockholder of the insurer; and
(b) whether or not a policyholder, creditor, member, or stockholder described in this Subsection (1) exists.
(2) The receiver is considered a creditor without knowledge for purposes of pursuing claims under:
(a)Title 25, Chapter 6, Uniform Voidable Transactions Act; or
(b) similar provisions of state or federal law.
Amended by Chapter 204, 2017 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 5 - Asset Recovery › Section 508 - Liability of transferee.

31A-27a-508.
Liability of transferee.
(1) Except as otherwise provided in this section, to the extent that the receiver obtains an order pursuant to Section 31A-27a-501, or avoids a transfer under Section 31A-27a-502, 31A-27a-503, 31A-27a-504, 31A-27a-506, or 31A-27a-507, the receiver may recover the property transferred, or the value of the property, from:
(a) the initial transferee of the transfer or the entity for whose benefit the transfer is made; or
(b) subject to Subsection (2), an immediate or mediate transferee of the initial transferee.
(2) The receiver may not recover under Subsection (1)(b) from:
(a) a transferee that takes for value, including satisfaction or securing of a present or antecedent debt:
(i) in good faith; and
(ii) without knowledge of the voidability of the transfer avoided; or
(b) an immediate or mediate good faith transferee of the transferee.
(3) A transfer avoided in accordance with this chapter is preserved for the benefit of the receivership estate, but only with respect to property of the insurer.
(4) In addition to the remedies specifically provided in Sections 31A-27a-501, 31A-27a-502, 31A-27a-503, 31A-27a-504, 31A-27a-506, and 31A-27a-507 and Subsection (1), if the receiver is successful in establishing a claim to the property or any part of the property, the receiver may recover judgment for the following:
(a) rental for the use of tangible property from the later of:
(i) the day on which the receivership order is entered; or
(ii) the date of the transfer; and
(b) in the case of funds or intangible property:
(i) the greater of:
(A) the actual interest;
(B) income earned by the property; or
(C) interest at the statutory rate for judgments; and
(ii) from the later of:
(A) the day on which the receivership order is entered; or
(B) the date of the transfer.
(5) In an action pursuant to this section, the receivership court may allow the receiver to seek recovery of the property involved or its value.
(6) In an action pursuant to Sections 31A-27a-501, 31A-27a-502, 31A-27a-503, 31A-27a-504, 31A-27a-506, 31A-27a-507, and 31A-27a-510:
(a) the receiver has the burden of proving the avoidability of a transfer; and
(b) the person against whom recovery or avoidance is sought has the burden of proving the nature and extent of any affirmative defense.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 5 - Asset Recovery › Section 509 - Claims of holders of void or voidable rights.

31A-27a-509.
Claims of holders of void or voidable rights.
(1)
(a) The receiver may disallow a claim of a creditor who receives or acquires a preference, lien, conveyance, transfer, assignment, or encumbrance voidable under this chapter, unless the creditor surrenders the preference, lien, conveyance, transfer, assignment, or encumbrance.
(b) If an avoidance is effected by a proceeding in which a final judgment is entered, a creditor's claim is not allowed unless the money is paid or the property is delivered to the receiver within 30 days from the day on which the final judgment is entered, except that the receivership court may allow further time if there is an appeal or other continuation of the proceeding.
(2) A claim allowable under Subsection (1) by reason of an avoidance, whether voluntary or involuntary, or a preference, lien, conveyance, transfer, assignment, or encumbrance, may be filed as an excused late filing under Subsection 31A-27a-601(2) if filed within:
(a) 30 days from the date of the avoidance; or
(b) the further time allowed by the receivership court under Subsection (1).
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 5 - Asset Recovery › Section 510 - Setoffs.

31A-27a-510.
Setoffs.
(1)
(a) A mutual debt or mutual credit shall be set off and the balance only allowed or paid:
(i) whether arising out of one or more contracts between the insurer and another person in connection with an action or proceeding under this chapter; and
(ii) except as provided in Subsection (2) and Sections 31A-27a-513 and 31A-27a-514.
(b) An obligation arising out of the termination of a life, disability income, or long-term care reinsurance contract pursuant to Section 31A-27a-513 may be set off against other debts and credits arising out of a contract between the insurer and the reinsurer.
(2)
(a) A setoff is not allowed after the commencement of a delinquency proceeding under this chapter in favor of any person if:
(i) the claim against the insurer is disallowed;
(ii) the claim against the insurer is purchased by or transferred to the person:
(A) on or after the day on which the receivership petition is filed; or
(B) within 120 days preceding the day on which the receivership petition is filed;
(iii) the obligation of the insurer is owed to an affiliate or entity other than the person, absent written assignment of the obligation made more than 120 days before the day on which the petition for receivership is filed;
(iv) the obligation of the person is owed to an affiliate or entity other than the insurer, absent written assignment of the obligation made more than 120 days before the day on which the petition for receivership is filed;
(v) the obligation of the person is:
(A) to pay:
(I) an assessment levied against a member or subscriber of the insurer; or
(II) a balance upon a subscription to the capital stock of the insurer; or
(B) in any other way in the nature of a capital contribution;
(vi) an obligation between the person and the insurer arises out of a transaction by which either the person or the insurer:
(A) assumes a risk or obligation from the other party; and
(B) then cedes back to that party substantially the same risk or obligation;
(vii) the obligation of the person arises out of an avoidance action taken by the receiver; or
(viii) the obligation of the insured is for the payment of earned premiums or retrospectively rated earned premiums in accordance with Section 31A-27a-514.
(b) Notwithstanding Subsection (2)(a)(vi), the receiver may permit a setoff if, in the receiver's discretion, a setoff is appropriate because of specific circumstances relating to a transaction.
(3) The receiver may avoid pursuant to Sections 31A-27a-504, 31A-27a-506, and 31A-27a-507 and subject to defenses under those sections, a setoff that occurs before the commencement of the delinquency proceeding under this chapter if the setoff would otherwise be disallowed pursuant to Subsection (2).
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 6 - Claims › Section 602 - Proof of claim.

31A-27a-602.
Proof of claim.
(1) Proof of claim shall consist of a statement signed by the claimant or on behalf of the claimant that includes all of the following that are applicable:
(a) the particulars of the claim including the consideration given for the claim;
(b) the identity and amount of the security on the claim;
(c) the payments made on the debt, if any;
(d) that the sum claimed is justly owing and there is no setoff, counterclaim, or defense to the claim;
(e) any right of priority of payment or other specific right asserted by the claimant;
(f) the name and address of the claimant and the attorney, if any, who represents the claimant; and
(g) the claimant's Social Security number or federal employer identification number.
(2) The liquidator may require that:
(a) a prescribed form be used under this section; and
(b) other information and documents be included.
(3) At any time the liquidator may:
(a) require the claimant to present information or evidence supplementary to that required under Subsection (1);
(b) take testimony under oath;
(c) require production of one or more affidavits or depositions; or
(d) otherwise obtain additional information or evidence.
(4)
(a) An affected guaranty association may file a single omnibus proof of claim for all claims of the affected guaranty association in connection with payment of claims of the insurer.
(b) The omnibus proof of claim may be periodically updated by the affected guaranty association without regard to the deadline specified in Subsection 31A-27a-601(1).
(c) An affected guaranty association may be required to submit a reasonable amount of documentation in support of the claim.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 6 - Claims › Section 604 - Claims under an occurrence policy, surety bond, surety undertaking.

31A-27a-604.
Claims under an occurrence policy, surety bond, surety undertaking.
(1) Subject to Section 31A-27a-603, an insured may file a claim for the protection afforded under the insured's policy, irrespective of whether a claim is known at the time of filing, if the policy is an occurrence policy.
(2) Subject to Section 31A-27a-603, an obligee may file a claim for the protection afforded under a surety bond or a surety undertaking issued by the insurer as to which the obligee is the beneficiary, irrespective of whether a claim is known at the time of filing.
(3) After a claim is filed under Subsection (1) or (2), when a specific claim is made by or against the insured or by the obligee:
(a) the insured or the obligee shall supplement the claim; and
(b) the receiver shall treat the claim as a contingent or unliquidated claim under Section 31A-27a-605.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 6 - Claims › Section 607 - Disputed claims.

31A-27a-607.
Disputed claims.
(1)
(a) When a claim is disallowed in whole or in part by the liquidator, written notice of the determination and of the right to object shall be given promptly to the claimant or the claimant's attorney of record, if any, by first-class mail at the addresses shown in the proof of claim.
(b)
(i) Within 45 days from the day on which the notice required by Subsection (1)(a) is mailed, the claimant may file an objection with the liquidator.
(ii) If an objection is not filed within the period provided in Subsection (1)(b)(i), the claimant may not further object to the determination.
(2)
(a) If an objection is filed in accordance with Subsection 31A-27a-603(3)(a) and the liquidator does not alter the liquidator's ruling, the liquidator shall ask the court for a hearing as soon as practicable.
(b) If the liquidator asks for a hearing under Subsection (2)(a), the court shall issue an order setting a date as early as possible.
(c) At the request of the liquidator, the court may establish procedures for the objections hearing.
(d) The liquidator shall give notice of a hearing under this Subsection (2) by first-class mail to:
(i) the claimant or the claimant's attorney; and
(ii) any other persons directly affected.
(e) A hearing under this Subsection (2):
(i) shall be heard without a jury; and
(ii) may be heard by:
(A) the court; or
(B) a court appointed referee.
(f) A hearing under this Subsection (2) shall be limited to the evidence upon which the liquidator made the determination of the claim.
(g) If a referee is appointed under this Subsection (2), the referee shall submit to the court:
(i) findings of fact;
(ii) recommendations; and
(iii) a transcript of the hearing.
(h) The court shall review the referee's findings of fact and recommendations for correctness by reviewing the record, including the hearing transcript.
(i) Consistent with Section 31A-27a-608, the court may approve, disapprove, or modify:
(i) the liquidator's determination of a claim; or
(ii) a referee's recommendations on a claim.
(3) A court order issued after a hearing and pursuant to this section may be appealed as a final order for purposes of Rule 54, Utah Rules of Civil Procedure.
(4) This section is not applicable to a dispute with respect to a coverage determination by an affected guaranty association as part of the affected guaranty association's statutory obligations.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 6 - Claims › Section 608 - Liquidator's recommendations to the receivership court.

Effective 5/8/2018
31A-27a-608.
Liquidator's recommendations to the receivership court.
(1) The liquidator shall, from time to time as determined by the liquidator, present to the receivership court for approval, reports of claims settled or determined by the liquidator under Section 31A-27a-603.
(2) A report required by this section shall include information identifying:
(a) the claim;
(b) the amount of the claim; and
(c) the priority class of the claim.
(3)
(a) A claim included in a report described in this section and approved by the receivership court is a liability of the estate.
(b) An insurer's insolvency does not affect the amount of a liability described in Subsection (3)(a), regardless of any provision in an agreement to the contrary.
Amended by Chapter 319, 2018 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 6 - Claims › Section 609 - Claims of codebtor.

31A-27a-609.
Claims of codebtor.
If a creditor does not timely file a proof of the creditor's claim, the following may file a proof of the claim:
(1) a person who is liable to the creditor together with the insurer; or
(2) a person who has secured the creditor.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 7 - Distributions › Section 702 - Health maintenance organization claims.

Effective 1/1/2019
31A-27a-702.
Health maintenance organization claims.
(1) For a delinquency proceeding under this chapter that is initiated before May 8, 2018, in the liquidation of a health maintenance organization, a claim for uncovered expenditures has priority over a Class 3 claim as provided for in Section 31A-27a-701.
(2) A claim other than one described in Subsection (1) shall follow the priority of distribution outlined in Section 31A-27a-701.
Amended by Chapter 391, 2018 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 7 - Distributions › Section 703 - Partial and final distributions of assets.

31A-27a-703.
Partial and final distributions of assets.
(1)
(a) With the approval of the receivership court, a liquidator may declare and pay:
(i) one or more partial distributions on claims as those claims are allowed; and
(ii) a final distribution.
(b) All claims allowed within a priority class shall be paid at substantially the same percentage.
(c) A distribution under this section to a guaranty association is not an advance under Section 31A-27a-704.
(2) In determining the percentage of distributions to be paid on a claim, the liquidator may consider:
(a) the estimated value of the insurer's property, including estimated reinsurance recoverables in connection with the insurer's estimated liabilities for:
(i) unpaid losses and loss expenses; and
(ii) incurred but not reported losses and loss expenses; and
(b) the estimated value of the insurer's liabilities, including estimated liabilities for:
(i) unpaid losses and loss expenses; and
(ii) incurred but not reported losses and loss expenses.
(3) Distribution of property in kind may be made at valuations set by agreement:
(a) between the liquidator and the creditor; and
(b) as approved by the receivership court.
(4)
(a) Notwithstanding Subsection (1) and Part 6, Claims, the liquidator may pay benefits under a workers' compensation policy after the day on which the liquidation order is entered if:
(i) there is an acceptance of liability by the insurer, and no bona fide dispute exists;
(ii) payment is commenced before the entry of the liquidation order; and
(iii) future or past indemnity or medical payments are due.
(b) A claim payment under this Subsection (4) may continue until the applicable guaranty association:
(i) assumes responsibility for the claim payments; or
(ii) determines the claim is not a covered claim under its guaranty association law.
(c) A claim payment or related expense made under this Subsection (4) may be treated as early access distribution under Section 31A-27a-704 in accordance with an agreement with the guaranty association responsible for the payment.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 7 - Distributions › Section 705 - Unclaimed and withheld funds.

31A-27a-705.
Unclaimed and withheld funds.
(1)
(a) If any funds of the receivership estate remain unclaimed after the final distribution under Section 31A-27a-703, the funds shall be placed in a segregated unclaimed funds account held by the commissioner.
(b) If the owner of any of the funds described in Subsection (1)(a) presents proof of ownership satisfactory to the commissioner within two years after the day on which the delinquency proceeding terminates, the commissioner shall remit the funds to the owner.
(c) The interest earned on funds held in the unclaimed funds account may be used to pay any administrative costs related to the handling or return of unclaimed funds.
(2)
(a) If any amounts held in the unclaimed funds account remain unclaimed for two years after the day on which the delinquency proceeding terminates, the commissioner may file a motion for an order directing the disposition of the funds in the court in which the delinquency proceeding was pending.
(b) Any costs incurred in connection with the motion made under this Subsection (2) may be paid from the unclaimed funds account.
(c) A motion under this Subsection (2) shall identify:
(i) the name of the insurer;
(ii) the names and last-known addresses of the one or more persons entitled to the unclaimed funds, if known; and
(iii) the amount of the funds.
(d) Notice of the motion shall be given as directed by the court.
(e) Upon a finding by the court that the funds have not been claimed within two years after the day on which the delinquency proceeding terminates:
(i) the court shall order that a claim for unclaimed funds, and any interest earned on the claim that has not been expended under Subsection (1), is abandoned; and
(ii) the funds shall be disbursed under one of the following methods, the amounts may be:
(A) deposited in the general receivership expense account under Subsection (3);
(B) transferred to the state treasurer and deposited into the General Fund; or
(C)
(I) used to reopen the receivership in accordance with Section 31A-27a-803; and
(II) distributed to the known claimants with approved claims.
(3) The commissioner may establish an account for the following purposes:
(a) to pay general expenses related to the administration of receiverships; or
(b) to advance funds to a receivership that does not have sufficient cash to pay its operating expenses.
(4) Any advance to a receivership estate under Subsection (3)(b) may be treated:
(a) as a claim under Section 31A-27a-701 as may be agreed at the time the advance is made; or
(b) in the absence of an agreement described in Subsection (4)(a), in a priority determined to be appropriate by the receivership court.
(5) If the commissioner determines at any time that the funds in the account created in Subsection (3) exceed the amount required, the commissioner may transfer the funds or any part of the funds to the state treasurer, and the transferred funds shall be deposited into the General Fund.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 8 - Discharge › Section 801 - Condition on release from delinquency proceedings.

31A-27a-801.
Condition on release from delinquency proceedings.
(1) Unless otherwise provided in a plan approved by the guaranty associations, an insurer that is subject to a rehabilitation proceeding may not take an action listed in Subsection (2) until all payments by all guaranty associations of or on account of the insurer's contractual obligations are repaid to the guaranty associations with:
(a) all expenses related to the payments by all guaranty associations of or on account of the insurer's contractual obligations; and
(b) interest on all the payments.
(2) Until an insurer that is subject to a rehabilitation proceeding complies with Subsection (1), the insurer may not:
(a) be permitted to:
(i) solicit or accept new business; or
(ii) request or accept the restoration of any suspended or revoked license or certificate of authority;
(b) be returned to the control of its shareholders or private management; or
(c) have any of its assets returned to the control of its shareholders or private management.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 8 - Discharge › Section 802 - Discharge of liquidator and termination of liquidation proceedings.

31A-27a-802.
Discharge of liquidator and termination of liquidation proceedings.
(1) When all property justifying the expense of collection and distribution is collected and distributed under this chapter, the liquidator shall apply to the receivership court for an order discharging the liquidator and terminating the proceeding.
(2) The receivership court may grant the application and make any other orders, including orders to:
(a) transfer any remaining funds that are uneconomic to distribute; or
(b) pursuant to Subsection 31A-27a-703(3), assign an asset that remains unliquidated, including a claim or cause of action, as may be considered appropriate.
Enacted by Chapter 309, 2007 General Session
2023 Utah Code › Title 31A - Insurance Code › Chapter 27a - Insurer Receivership Act › Part 8 - Discharge › Section 803 - Reopening liquidation.

31A-27a-803.
Reopening liquidation.
(1) After a liquidation proceeding is terminated and the liquidator discharged, the commissioner may at any time petition the court that was the receivership court to reopen the proceedings for good cause, including the discovery of additional property.
(2) If the court is satisfied that there is justification for reopening the proceedings, the court shall order the proceedings reopened.
Enacted by Chapter 309, 2007 General Session