KRS 304.33-040: Jurisdiction and venue.

(1) Actions by commissioner. Except as provided in subsection (2) of this section, and

subsection (1) of KRS 304.33 -230, no delinquency proceeding shall be commenced

under this subtitle by anyone other than the commissioner and no court shall have

jurisdiction to entertain, hear or determine any proceeding commenced by any other

person.

(2) Action by judgment creditors:

(a) The judgment creditors of three (3) or more unrelated judgments may

commence proceedings under the conditions and in the manner prescribed in

this subsection, by serving notice upon the commissioner and the insurer of

intention to file a petition for liquidation under KRS 304.33 -190 or 304.33 -

520. Each of the judgments must:

1. Have been rendered against the insurer by a court in this state h aving

jurisdiction over the subject matter and the insurer;

2. Have been entered more than sixty (60) days before the service of

notice;

3. Not have been paid in full;

4. Not be the subject of a valid contract between the insurer and any

judgment creditor for payment of the judgment, unless the contract has

been breached by the insurer; and

5. Not be a judgment on which an appeal or review is pending.

(b) If any one (1) of the judgments in favor of a petitioning creditor remains

unpaid for thirty (30) days after service of the notice, and the commissioner

has not then filed a petition for liquidation, the creditor may file in the name

of the commissioner a verified petition for liquidation of the insurer under

KRS 304.33 -190 or 304.33 -520 alleging the condit ions stated in this

subsection. The commissioner shall be served and joined in the action.

(3) Exclusiveness of proceedings.

(a) The court shall have exclusive jurisdiction to entertain, hear, or determine all

matters in any way relating to any delinquency proceeding under this subtitle,

including but not limited to all disputes involving purported assets of the

insurer.

(b) Notwithstanding the provisions of paragraph (a) of this subsection, the court

may authorize the receiver to seek injunctive or other a ppropriate relief from

other courts, either within or without this state, if, in the opinion of the court,

this action will be an aid to any delinquency proceeding.

(c) The court may issue any order, process, or judgment that is necessary or

appropriate to carry out the provisions of this subtitle. No provisions in this

subtitle shall be construed to preclude the court from, on its own motion,

taking any action or making any determination necessary or appropriate to

enforce or implement court orders or rules or to prevent an abuse of process.

(4) Change of venue. Venue for proceedings arising under this subtitle shall be laid

initially as specified in the sections providing for such proceedings. All other

actions and procee dings initiated by the receiver may be commenced and tried

where the delinquency proceedings are then pending, or where venue would be laid

by KRS Chapter 452 or other applicable law. All other actions and proceedings

against the receiver shall be commence d and tried in the county where the

delinquency proceedings are pending. At any time upon motion of any party, venue

may be changed by order of the court or the presiding judge thereof to any other

Circuit Court in this state, as the convenience of the par ties and witnesses and the

ends of justice may require. This subsection relates only to venue and is not

jurisdictional.

(5) Personal jurisdiction, grounds for. In addition to other grounds for jurisdiction

provided by the law of this state, a court of thi s state having jurisdiction of the

subject matter shall have jurisdiction over a person served in an action brought by

the receiver of a domestic insurer or an alien insurer domiciled in this state:

(a) If the person served is obligated to the insurer in any way as an incident to any

agency or brokerage arrangement that may exist or has existed between the

insurer and the agent or broker, in any action on or incident to the obligation;

(b) If the person served is a reinsurer who has at any time issued a con tract of

reinsurance to an insurer against which a rehabilitation or liquidation order is

in effect when the action is commenced, or is an agent or broker of or for the

reinsurer, in any action on or incident to the reinsurance contract;

(c) If the person served is or has been an officer, manager, trustee, organizer,

promoter, or person in a position of comparable authority or influence in an

insurer against which a rehabilitation or liquidation order is in effect when the

action is commenced, in any action resulting from the relationship with the

insurer;

(d) If the person served is or was at the time of the institution of the delinquency

proceedings holding assets in which the receiver claims an interest on behalf

of the insurer;

(e) If the person served h as filed a claim against the insurer under the provisions

of KRS 304.33-360;

(f) If the person served is otherwise amenable to the exercise of personal

jurisdiction by the courts of this state under the provisions of the due process

clause of the Fourteenth Amendment to the United States Constitution; or

(g) If the person served is obligated to the insurer in any way in any action on or

incident to the obligation.

(6) Service of process.

(a) If personal jurisdiction is authorized by this section, service of process may be

made on the person, or any agent of the person, in the county of this state

where he or she may be found, or on the Secretary of State who, for this

purpose, shall be deemed to be the statutory agent of the person.

(b) The clerk of the cour t in which the action is brought shall issue a summons

against the defendant named in the complaint. The clerk shall execute the

summons by sending by certified mail a true copy to the Secretary of State and

shall also mail with the summons an attested cop y of the complaint. The

Secretary of State shall, within seven (7) days of receipt thereof in his or her

office, mail the copy of the summons and complaint to the defendant at the

address given in the complaint. The letter shall be posted by certified mail ,

return receipt requested, and shall bear the return address of the Secretary of

State. The clerk shall make the usual return to the court, and, in addition, the

Secretary of State shall make a return to the court showing that the acts

contemplated by thi s statute have been performed, and shall attach to his or

her return the registry receipt, if any. Summons shall be deemed to be served

upon the return of the Secretary of State and the action shall proceed as

provided in the Rules of Civil Procedure.

(c) The clerk mailing the summons to the Secretary of State shall mail to him or

her, at the same time, a fee of ten dollars ($10), which shall be taxed as costs

in the action.

(7) Forum non conveniens. If the court on motion of any party finds that any action

commenced under subsection (5) of this section should as a matter of substantial

justice be tried in a forum outside this state, the court may enter an order to stay

further proceedings on the action in this state.