60B.12 COURT'S SEIZURE ORDER.
Subdivision 1. Issuance.
Upon the filing by the commissioner in any district court in this
state of a verified petition establishing to the satisfaction of the court that sufficient grounds exist
for a formal delinquency proceeding against an insurer under sections
the interests of policyholders, creditors, or the public will be endangered by delay, and setting
out the order deemed necessary by the commissioner, the court shall issue forthwith, ex parte
and without a hearing, an order which may (a) authorize the commissioner to take possession
and control of all or a part of the property, books, accounts, documents, and other records of an
insurer and of the premises occupied by it for the transaction of its business, and (b) until further
order of the court, enjoin the insurer and its officers, managers, agents, and employees from
disposition of its property and from transaction of its business except with the written consent
of the commissioner, and (c) provide such other terms as the court deems appropriate for the
protection of the insurer, its policyholders, its creditors, and the public during the duration of the
order. The order shall also direct the service of a copy of the order forthwith upon the insurer and
all persons in possession of any property seized under the order.
Subd. 2. Duration.
The court shall specify in the order what its duration shall be and order
the insurer to appear at a specified time within the duration of the order and show cause why the
order should not be continued in effect. The duration of the order may be such time as the court
deems necessary for the commissioner to ascertain the condition of the insurer. On motion of
either party or on its own motion, the court may hold such hearings as it deems desirable after
such notice as it deems appropriate, and may set aside, extend, shorten, or modify the terms of the
seizure order. The court shall vacate the seizure order if the commissioner fails to commence a
formal proceeding under sections
after having had a reasonable opportunity
to do so. The issuance of an order of the court pursuant to a formal proceeding under sections
vacates the seizure order.
Subd. 3. Anticipatory breach.
Entry of a seizure order under this section shall not constitute
an anticipatory breach of any contract of the insurer.
History: 1969 c 708 s 12