ARTICLE 14. Proceedings in Cases of Insolvency and Delinquency [1010. - 1062.]

Article 14 amended by Stats. 1935, Ch. 291.

§§ 1010–1062 · 64 sections

§ 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…
§ 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 commissioner of the…
§ 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 upon a…
§ 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 by him or…
§ 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 order shall…
§ 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 property and…
§ 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 of any county…
§ 1015 Immediately after such seizure, the commissioner shall institute a proceeding as provided for in section 1011 and thereafter shall proceed in accordance with…
§ 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, including under…
§ 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,…
§ 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 1017 shall impart the same…
§ 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…
§ 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 orders as may be…
§ 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,…
§ 1022 The notice shall be published in newspapers of general circulation in geographic areas pertinent to the liquidation. The notice shall reference a source,…
§ 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…
§ 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, and no action may be…
§ 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…
§ 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…
§ 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 is adjudged…
§ 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 has subsequently been paid or…
§ 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 judgment, provided it…
§ 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 of…
§ 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 amount for which the claim would be…
§ 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 court. Such…
§ 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 for an unearned…
§ 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…
§ 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, shall…
§ 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 forth in his…
§ 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…
§ 1033.5 (a) The purpose of this section is to clarify the rights and obligations of policyholders, claimants, guaranty funds, including the California Insurance…
§ 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 on account of an antecedent…
§ 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…
§ 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…
§ 1035.2 (a) The officers and employees of the Conservation and Liquidation Office are subject to all conflict-of-interest provisions and financial disclosure…
§ 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…
§ 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 Title 2 of the…
§ 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…
§ 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 service of…
§ 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 whenever it is…
§ 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 to the City and…
§ 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 any proceeding under this…
§ 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…
§ 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 liens…
§ 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 of…
§ 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 organized with…
§ 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…
§ 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…
§ 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 the…
§ 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 is insured. Such…
§ 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 approval and…
§ 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 direct notice of a…
§ 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…
§ 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…
§ 1054 Such insurer, after mutualization, shall be a continuation of the original insurer, and such mutualization shall not affect existing suits, rights or contracts…
§ 1055 The commissioner shall exercise the powers and discharge the duties, concerning any insurer so mutualized, that are applicable to domestic insurers issuing…
§ 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 insurer,…
§ 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, but such person…
§ 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 in the…
§ 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, in…
§ 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 capacity on behalf…
§ 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…
§ 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 often if requested by…
§ 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, hereinafter…