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Uniform Insurers Liquidation Act

Delaware · Insurance Code · §§ 18-5901 to 18-5933 · 34 sections

Overview

The act governs delinquency proceedings against financially impaired insurance companies, providing a court-supervised framework for rehabilitating an insurer or, where rehabilitation fails, liquidating it and winding up its affairs. It places the insurer's assets under the control of the insurance commissioner as receiver and sets out how claims are proved, prioritized, and paid, along with powers to recover voidable preferences and fraudulent transfers, apply setoffs, levy assessments against the members or subscribers of mutual and reciprocal insurers, and ultimately distribute assets and close the proceeding. Because insurers commonly operate across state lines, it also coordinates proceedings between jurisdictions by distinguishing domestic, foreign, and alien insurers, allowing conservation or ancillary receiverships for out-of-state companies, protecting the claims of nonresidents, and making the receivership court the exclusive forum while barring creditors from pursuing attachment, garnishment, or execution elsewhere.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.

Sections covered

Enacted in other states

Alaska, Alabama, Arkansas, Maine, New Mexico, Rhode Island, West Virginia, Wyoming

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