{"data":{"id":"us-ky/krs-304.33-540","jurisdiction":"us-ky","citation":"KRS 304.33-540","heading":"Ancillary formal proceedings.","body":"(1) Appointment of ancillary receiver in this state. If a domiciliary liquidator has been\nappointed for an insurer not domiciled in this state, the commissioner shall file a\npetition with the Franklin Circuit Court requesting appointment as ancillary receiver\nin this state:\n(a) If the commissioner finds that there are sufficient assets of the insurer located\nin this state to justify the appointment of an ancillary receiver;\n(b) If ten (10) or more persons resident in this state having claims against the\ninsurer file a petition with the commissioner requesting appointment of an\nancillary receiver; or\n(c) If the protection of creditors or policyholders in this state so requires.\n(2) Terms of order. The court may issue an order appointing an ancillary receiver in\nwhatever terms it deems appropriate. The filing or recording of the order with any\ncounty clerk in this state imparts the same notice as a deed, bill of sale or other\nevidence of title duly filed or recorded with that county clerk.\n(3) Property rights and t itle: ancillary receivers in this state. When a domiciliary\nliquidator has been appointed in a reciprocal state the ancillary receiver appointed in\nthis state under subsection (1) of this section shall have the sole right to recover all\nthe assets of the i nsurer in this state not already recovered by the domiciliary\nliquidator, except that the domiciliary liquidator shall be entitled to and have the\nsole right to recover balances due from agents and the books, accounts and other\nrecords of the insurer. The ancillary receiver shall have the right to recover balances\ndue from agents and books, accounts and other records of the insurer, if such action\nis necessary to protect the assets because of inaction by the domiciliary liquidator.\nThe ancillary receiver sh all, as soon as practicable, liquidate from their respective\nsecurities those special deposit claims and secured claims which are proved and\nallowed in the ancillary proceedings in this state, and shall pay the necessary\nexpenses of the proceedings. The an cillary receiver shall promptly transfer all\nremaining assets to the domiciliary liquidator. Subject to this section, the ancillary\nreceiver and his or her deputies shall have the same powers and be subject to the\nsame duties with respect to the administra tion of assets as a liquidator of an insurer\ndomiciled in this state.\n(4) Property rights and title: foreign ancillary receivers. When a domiciliary liquidator\nhas been appointed in this state, ancillary receivers appointed in reciprocal states\nshall have,  as to assets and books, accounts and other records located in their\nrespective states, corresponding rights and powers to those prescribed in subsection\n(3) of this section for ancillary receivers appointed in this state.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29874","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:55Z","sha256":"627f34af66c74591ec9e0d6d25065259aa514bd4764528b48a37a97f7c6c3d8c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.33-530","next":"us-ky/krs-304.33-550"},"notice":"GroundRules: Original legal text. Not legal advice."}