South Dakota Codified Laws 58-29B-39. Rehabilitation futile–Petition for liquidation–Effect–Court to permit directors or insurers to defend
If the director believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, or would be futile, the director may petition the circuit court of Hughes County for an order of liquidation. A petition under this section has the same effect as a petition under § 58-29B-41. The circuit court of Hughes County shall permit the directors of the insurer to take such actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer of such costs and other expenses of defense as justice may require. If the insurer is insolvent, the court shall issue an order for liquidation and shall set a hearing to determine the issues being asserted by the directors.
Terms Used In South Dakota Codified Laws 58-29B-39
- insolvent: means that it is unable to pay its obligations when they are due, or when its admitted assets do not exceed its liabilities plus the greater of any capital and surplus required by law for its organization or the total par or stated value of its authorized and issued capital stock. See South Dakota Codified Laws 58-29B-3
Source: SL 1989, ch 436, § 39; SL 1992, ch 351, § 15.