N.Y. Insurance Law § 7410: Conduct of delinquency proceedings against insurers not domiciled in this state

§ 7410. Conduct of delinquency proceedings against insurers not

domiciled in this state. (a) Whenever under the laws of this state an

ancillary receiver is to be appointed in delinquency proceedings for an

insurer not domiciled in this state, the court shall appoint the

superintendent as ancillary receiver. The superintendent shall file a

petition requesting the appointment if he finds that there are

sufficient assets of such insurer located in this state to justify the

appointment of an ancillary receiver, or if ten or more persons resident

in this state having claims against such insurer file a petition with

the superintendent requesting the appointment of such ancillary

receiver.

(b) The domiciliary receiver for the purpose of liquidating an insurer

domiciled in a reciprocal state, shall be vested by operation of law

with the title to all of the property, contracts, and rights of action,

and all books and records of the insurer located in this state, and

shall have the immediate right to recover balances due from local agents

and obtain possession of any books and records of the insurer found in

this state. He shall also be entitled to recover the other assets of

the insurer located in this state except that upon the appointment of an

ancillary receiver in this state, the ancillary receiver shall during

the ancillary receivership proceedings have the sole right to recover

such other assets. The ancillary receiver shall, 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. All remaining assets he shall promptly transfer to the

domiciliary receiver. Subject to the foregoing provisions the ancillary

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

the same duties with respect to the administration of such assets, as a

receiver of an insurer domiciled in this state.

(c) The domiciliary receiver of an insurer domiciled in a reciprocal

state may sue in this state to recover any assets of such insurer to

which he may be entitled under the laws of this state.