KRS 304.33-540: Ancillary formal proceedings.

(1) Appointment of ancillary receiver in this state. If a domiciliary liquidator has been

appointed for an insurer not domiciled in this state, the commissioner shall file a

petition with the Franklin Circuit Court requesting appointment as ancillary receiver

in this state:

(a) If the commissioner finds that there are sufficient assets of the insurer located

in this state to justify the appointment of an ancillary receiver;

(b) If ten (10) or more persons resident in this state having claims against the

insurer file a petition with the commissioner requesting appointment of an

ancillary receiver; or

(c) If the protection of creditors or policyholders in this state so requires.

(2) Terms of order. The court may issue an order appointing an ancillary receiver in

whatever terms it deems appropriate. The filing or recording of the order with any

county clerk in this state imparts the same notice as a deed, bill of sale or other

evidence of title duly filed or recorded with that county clerk.

(3) Property rights and t itle: ancillary receivers in this state. When a domiciliary

liquidator has been appointed in a reciprocal state the ancillary receiver appointed in

this state under subsection (1) of this section shall have the sole right to recover all

the assets of the i nsurer in this state not already recovered by the domiciliary

liquidator, except that the domiciliary liquidator shall be entitled to and have the

sole right to recover balances due from agents and the books, accounts and other

records of the insurer. The ancillary receiver shall have the right to recover balances

due from agents and books, accounts and other records of the insurer, if such action

is necessary to protect the assets because of inaction by the domiciliary liquidator.

The ancillary receiver sh all, as soon as practicable, liquidate from their respective

securities those special deposit claims and secured claims which are proved and

allowed in the ancillary proceedings in this state, and shall pay the necessary

expenses of the proceedings. The an cillary receiver shall promptly transfer all

remaining assets to the domiciliary liquidator. Subject to this section, the ancillary

receiver and his or her deputies shall have the same powers and be subject to the

same duties with respect to the administra tion of assets as a liquidator of an insurer

domiciled in this state.

(4) Property rights and title: foreign ancillary receivers. When a domiciliary liquidator

has been appointed in this state, ancillary receivers appointed in reciprocal states

shall have, as to assets and books, accounts and other records located in their

respective states, corresponding rights and powers to those prescribed in subsection

(3) of this section for ancillary receivers appointed in this state.