Page:United States Statutes at Large Volume 54 Part 1.djvu/1102

From Wikisource
Jump to navigation Jump to search
This page needs to be proofread.


PUBLIC LAWS-CH. 792-OCT. 9, 1940 stantially its entire property or business in the property or business of any other company, without having first obtained the written approval of the Superintendent; or (d) Is found after an examination by the Superintendent to be in such condition that its further transaction of business would be hazard- ous to its policyholders; or (e) Has violated its charter; or (f) Is carrying on activities against public policy. Injnctions. Upon such application, such court may, in its discretion, issue an injunction restraining such company from the transaction of its busi- Deterinationo ess or disposition of its property pending further order of the court. s.s erm in ti ono On the return of such rule to show cause, the court shall hear, try, and determine the issues forthwith, and shall either deny the application or direct the Superintendent to take possession of the property and con- duct the business of such company and retain such possession and con- duct such business until on the application either of the Superintendent, the corporation counsel representing him, or the company, it shall, after a like hearing, appear to the court that the ground for the order directing the Superintendent to take possession has been removed, and that the company can properly resume the possession of its property, Lqunidaton. and the conduct of its business. If on the like application and rule to show cause, and after a hearing, the court shall order the liquidation of the business of such company, such liquidation shall be made by and under the direction of the Superintendent, who may deal with the property and business of such company in his own name as Superin- tendent, or in the name of the company, as the court may direct, and shall be vested by operation of law with title to all of the property, con- tracts, and rights of action of such company as of the date of the order oFing o reording SO directing him to liquidate. The filing or recording of such order in the office of the recorder of deeds for the District shall impart the same notice that a deed, bill of sale, or other evidence of title duly filed sAppointtment o or recorded by such company would have imparted. For the purpose of this section, the Superintendent shall have power to appoint under his hand and official seal one or more special deputy superintendents, and to employ clerks and assistants as may by him be deemed necessary. compensation. The fair and reasonable compensation of such special deputies, clerks, and assistants, and all the expenses of taking possession of and con- ducting the business of any such company shall, subject to the approval Bond. of the court, be paid out of the funds or assets of such company. The court may require a corporate surety bond or bonds from the Superin- tendent in such amount as it may deem necessary. be deemed insolvent. SEC. 6 . WHEN COMPAN r TO BE DEEMED INSOLVENT. -Any insurance company whose assets are not sufficient to reinsure its outstanding risks in a solvent insurance company shall be deemed insolvent, and may be proceeded against as provided in this Act. PaencpISemimsie SEO. 7. WHEN CAPITAL OR SURPLUS OF COMPANY DEEMED IMPAIRED. - Any company whose capital has been reduced to an amount less than that required by this Act, or whose surplus of admitted assets in excess of all liabilities is less than the amount required by this Act, shall be deemed to be impaired in capital or surplus, and may be proceeded against as provided in this Act. Ann statement S E o. 8. ANNUAL STATEMENT.- Every company doing business in the District shall file with the Superintendent before March 1 in each year a financial statement for the year ending December 31 immedi- ately preceding on forms furnished by the Superintendent. The Superintendent shall have authority to extend the time for filing such verifti statement by any company for reasons which he shall deem good and sufficient. Such statement shall be verified by the oath of the presi- dent and secretary of the company, or, in their absence, by two other 1068 [54 STAT.