{"data":{"id":"us-ky/krs-304.33-240","jurisdiction":"us-ky","citation":"KRS 304.33-240","heading":"Powers of liquidator.","body":"The liquidator shall report to the court monthly, or at other intervals specified by the\ncourt, on the progress of the liquidation in whatever detail the court orders. Subject to\nKRS 304.33-055, the liquidator may:\n(1) Appoint a special deputy to act for him or her under this subtitle, and, subject to the\ncourt's approval, determine his or her compensation. The special deputy shall have\nall powers of the liquidator granted by this section. The special deputy shall serve at\nthe pleasure of the liquidator;\n(2) Appoint or engage employees and agents, legal counsel, actuaries, accountants,\nappraisers, consultants, and other personnel he or she deems necessary to assist in\nthe liquidation;\n(3) Fix the compensation of persons under subsection (2) of this section, subject to the\ncontrol of the court;\n(4) Defray all expenses of taking possession of, conserving, conducting, liquidating,\ndisposing of, or otherwise dealing with the business and property of the insurer. If\nthe property of the insurer does not contain suf ficient cash or liquid assets to defray\nthe costs incurred, the liquidator may advance the costs so incurred out of any\navailable appropriation. Any amounts so paid shall be deemed expense of\nadministration and shall be repaid for the credit of the Departm ent of Insurance out\nof the first available moneys of the insurer;\n(5) Hold hearings, subpoena witnesses and compel their attendance, administer oaths,\nexamine any person under oath, and compel any person to subscribe to his or her\ntestimony after it has been correctly reduced to writing, and in connection therewith\nrequire the production of any books, papers, record, or other documents which he or\nshe deems relevant to the inquiry;\n(6) Collect all debts and moneys due and claims belonging to the insurer, w herever\nlocated, and for this purpose institute timely action in other jurisdictions to marshal\nthe assets of the insurer; forestall garnishment and attachment proceedings against\nsuch debts; do such other acts as are necessary or expedient to collect, con serve or\nprotect its assets or property, including sell, compound, compromise, or assign for\npurposes of collection, subject to court approval and upon such terms and\nconditions as the liquidator deems best, any disputed claims; and pursue any\ncreditor's remedies available to enforce his or her claims. In lieu of collecting funds\nrepresenting unearned premium of a policyholder which are in the possession of the\ninsurer's agent with respect to the kinds of direct insurance protected under KRS\n304.36-030, the  liquidator may authorize the use of such funds to replace the\ninsurance coverage terminated pursuant to KRS 304.33 -210, upon receipt from the\nagent of appropriate notice of such replacement of the insurance coverage with an\ninsurer within sixty (60) days after the date of the liquidation order;\n(7) Audit the books and records of all agents of the insurer insofar as these records\nrelate to the business activities of the insurer;\n(8) Conduct public and private sales of the property of the insurer in a manner\nprescribed by the court;\n(9) Use assets of the estate to transfer policy obligations to a solvent assuming insurer,\nif the transfer can be arranged without prejudice to applicable priorities under KRS\n304.33-430;\n(10) Acquire, hypothecate, encumber, lease, improve, sell, transfer, abandon, or\notherwise dispose of or deal with any property of the insurer at its market value or\nupon such terms and conditions as are fair and reasonable, except that no\ntransaction involving  property the market value of which exceeds ten thousand\ndollars ($10,000) shall be concluded without express permission of the court. The\nliquidator also may execute, acknowledge, and deliver any deeds, assignments,\nreleases, and other instruments necessa ry or proper to effectuate any sale of\nproperty or other transaction in connection with the liquidation. In cases where real\nproperty sold by the liquidator is located other than in the county where the\nliquidation is pending, the liquidator shall cause to be filed with the county clerk for\nthe county in which the property is located a certified copy of the order appointing\nhim or her;\n(11) Borrow money, subject to court approval, on the security of the insurer's assets or\nwithout security and execute and deliver all documents necessary to that transaction\nfor the purpose of facilitating the liquidation;\n(12) Enter into such contracts as are necessary to carry out the order to liquidate, and\naffirm or disavow any contracts to which the insurer is a party, except the liquidator\nshall not disavow, reject, or repudiate a federal home loan bank security agreement\nor any pledge agreement, security agreement, collateral agreement, guarantee\nagreement, or other similar arrangement or credit enhancement relating to a security\nagreement to which a federal home loan bank is a party;\n(13) Continue to prosecute and institute in the name of the insurer or in his or her own\nname any suits and other legal proceedings, in this state or elsewhere, and abandon\nthe prosecution o f claims he or she deems unprofitable to pursue further. If the\ninsurer is dissolved under KRS 304.33-220, he or she may apply to any court in this\nstate or elsewhere for leave to substitute himself or herself for the insurer as\nplaintiff;\n(14) Prosecute a ny action which may exist on behalf of the creditors, members,\npolicyholders, or shareholders of the insurer against any officer of the insurer, or\nany other person;\n(15) Remove any records and property of the insurer to the offices of the commissioner\nor to such other place as is convenient for the purposes of efficient and orderly\nexecution of the liquidation;\n(16) Deposit in one (1) or more banks in this state such sums as are required for meeting\ncurrent administration expenses and dividend distributions;\n(17) File any necessary documents for record in the office of any county clerk or record\noffice in this state or elsewhere where property of the insurer is located;\n(18) Assert all defenses available to the insurer as against third persons, including\nstatutes of limitations, statutes of frauds, and the defense of usury. A waiver of any\ndefense by the insurer after a petition for liquidation has been filed shall not bind\nthe liquidator;\n(19) Exercise and enforce all the rights, remedies and powers of any creditor,\nshareholder, policyholder, or member, including any power to avoid any transfer or\nlien that may be given by law and that is not included within KRS 304.33 -290 to\n304.33-310, inclusive;\n(20) Intervene in any proceeding wherever instituted that mi ght lead to the appointment\nof a receiver or trustee, and act as the receiver or trustee whenever the appointment\nis offered;\n(21) Enter into agreements with any receiver or commissioner of any other state relating\nto the rehabilitation, liquidation, conse rvation, or dissolution of an insurer doing\nbusiness in both states;\n(22) Exercise all powers now held or hereafter conferred upon receivers by the laws of\nthis state not inconsistent with this subtitle; and\n(23) The enumeration in this section of the powers and authority of the liquidator is not a\nlimitation upon him or her, nor does it exclude his or her right to do such other acts\nnot herein specifically enumerated or otherwise provided for as are necessary or\nexpedient for the accomplishment of or in aid of the purpose of liquidation.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56204","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:54Z","sha256":"198a0c153f22cf1d2537002c84d66ff575aa611714d44d9a0e116e590a39b21c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.33-230","next":"us-ky/krs-304.33-250"},"notice":"GroundRules: Original legal text. Not legal advice."}