{"data":{"id":"us-ky/krs-304.33-160","jurisdiction":"us-ky","citation":"KRS 304.33-160","heading":"Powers and duties of the rehabilitator.","body":"(1) Special deputy. The commissioner as rehabilitator shall appoint one (1) or more\nspecial deputies, who are active or retired senior executives from a successful\ninsurer, and who shall have all the powers and responsibilities of the rehabilitator\ngranted under this section, and the commissioner may employ such counsel, clerks,\nand assistants as deemed necessary. The compensation of the special deputy,\ncounsel, clerks, and assistants and all expenses of taking possession of the insurer\nand of conducting the pr oceedings shall be fixed by the commissioner, with the\napproval of the court and shall be paid out of the funds or assets of the insurer. The\npersons appointed under this section shall serve at the pleasure of the commissioner.\nIf the property of the insur er does not contain sufficient cash or liquid assets to\ndefray the costs incurred, the commissioner may advance the costs so incurred out\nof any appropriation for the maintenance of the Department of Insurance. Any\namounts so advanced for expenses of admin istration shall be repaid to the\ncommissioner for the use of the Department of Insurance out of the first available\nmoney of the insurer.\n(2) General power. The rehabilitator may take action as he or she deems necessary or\nappropriate to reform and revital ize the insurer. He or she shall have all the powers\nof the directors, officers, and managers, whose authority shall be suspended, except\nas they are redelegated by the rehabilitator. He or she shall have full power to direct\nand manage, to hire and discha rge employees subject to any contract rights they\nmay have, and to deal with the property and business of the insurer.\n(3) Advice from experts. The rehabilitator may consult with and obtain formal or\ninformal advice and aid of insurance experts.\n(4) Pursuit of insurer's claims against insiders. If the rehabilitator finds that there has\nbeen criminal or tortious conduct or breach of any contractual or fiduciary\nobligation detrimental to the insurer by any officer, manager, agent, employee, or\nother person, h e or she may pursue all appropriate legal remedies on behalf of the\ninsurer.\n(5) Reorganization plan. The rehabilitator may prepare a plan for the reorganization,\nconsolidation, conversion, reinsurance, merger, or other transformation of the\ninsurer. Upon application of the rehabilitator for approval of the plan, and after the\nnotice and hearing as the court prescribes, the court may either approve or\ndisapprove the plan proposed, or may modify it and approve it as modified. If it is\napproved, the rehabilit ator shall carry out the plan. In the case of a life insurer, the\nplan proposed may include the imposition of liens upon the equities of\npolicyholders of the insurer, if all rights of shareholders are first extinguished. A\nplan for a life insurer may also propose imposition of a moratorium upon loan and\ncash surrender rights upon policies, for such period and to such an extent as are\nnecessary.\n(6) Fraudulent transfers. The rehabilitator shall have the power to avoid fraudulent\ntransfers under KRS 304.33-290 and 304.33-300.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29833","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:54Z","sha256":"24a8df8e4a9f2c74b1c97648763e0e8fb5619a2a51834e5933a5059d443e285d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.33-150","next":"us-ky/krs-304.33-165"},"notice":"GroundRules: Original legal text. Not legal advice."}