KRS 304.33-120: Court's seizure order.

(1) Issuance. Upon the filing by the commissioner in any Circuit Court in this state of a

verified petition alleging any ground that would justify a court order for a formal

delinquency proceeding against an insurer under this subtitle and that the interests

of policyholders or creditors will be endangered by delay, and setting out the order

deemed necessary by the commissioner, the court may issue forthwith, ex parte and

without a hearing, the requested order which may (a) direct the commissioner to

take posse ssion 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 off icers, managers, agents, and employees from disposition of its

property and from transaction of its business except with the written consent of the

commissioner.

(2) Duration. The court shall specify in the order what its duration shall be, which shall

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 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 this subtitle after having had a reasonable opportunity to do so.

The issuance of an order o f the court pursuant to a formal proceeding under this

subtitle vacates the seizure order.

(3) Anticipatory breach. Entry of a seizure order under this section shall not constitute

an anticipatory breach of any contract of the insurer.