(1) For purposes of this section: (a) A "transfer": (i) is made when the transfer is so perfected that a bona fide purchaser from the insurer against whom applicable law permits the transfer to be perfected cannot acquire an interest in the property transferred that is superior to the interest in the property of the transferee; or (ii) if the transfer is not perfected as provided in Subsection (1)(a)(i) before the commencement of the delinquency proceeding, is considered made immediately before the day on which the initial filing of the petition commencing delinquency proceedings is filed. (b) "Value" means property or satisfaction or securing of a present or antecedent debt of the insurer.
(a) A "transfer": (i) is made when the transfer is so perfected that a bona fide purchaser from the insurer against whom applicable law permits the transfer to be perfected cannot acquire an interest in the property transferred that is superior to the interest in the property of the transferee; or (ii) if the transfer is not perfected as provided in Subsection (1)(a)(i) before the commencement of the delinquency proceeding, is considered made immediately before the day on which the initial filing of the petition commencing delinquency proceedings is filed.
(i) is made when the transfer is so perfected that a bona fide purchaser from the insurer against whom applicable law permits the transfer to be perfected cannot acquire an interest in the property transferred that is superior to the interest in the property of the transferee; or
(ii) if the transfer is not perfected as provided in Subsection (1)(a)(i) before the commencement of the delinquency proceeding, is considered made immediately before the day on which the initial filing of the petition commencing delinquency proceedings is filed.
(b) "Value" means property or satisfaction or securing of a present or antecedent debt of the insurer.
(2) (a) If the conditions of Subsection (2)(b) are met, the receiver may avoid the following: (i) a transfer of an interest of the insurer in property; (ii) a reinsurance transaction; or (iii) an obligation incurred by an insurer. (b) Subsection (2)(a) applies if: (i) the transfer or obligation is made or incurred on or within two years before the day on which the initial filing of a petition commencing delinquency proceedings is filed under this chapter; and (ii) the insurer voluntarily or involuntarily: (A) makes the transfer or incurs the obligation with actual intent to hinder, delay, or defraud a person to which the insurer is or becomes indebted on or after the day on which the transfer is made or the obligation is incurred; or (B) receives less than a reasonably equivalent value in exchange for the transfer or obligation.
(a) If the conditions of Subsection (2)(b) are met, the receiver may avoid the following: (i) a transfer of an interest of the insurer in property; (ii) a reinsurance transaction; or (iii) an obligation incurred by an insurer.
(i) a transfer of an interest of the insurer in property;
(ii) a reinsurance transaction; or
(iii) an obligation incurred by an insurer.
(b) Subsection (2)(a) applies if: (i) the transfer or obligation is made or incurred on or within two years before the day on which the initial filing of a petition commencing delinquency proceedings is filed under this chapter; and (ii) the insurer voluntarily or involuntarily: (A) makes the transfer or incurs the obligation with actual intent to hinder, delay, or defraud a person to which the insurer is or becomes indebted on or after the day on which the transfer is made or the obligation is incurred; or (B) receives less than a reasonably equivalent value in exchange for the transfer or obligation.
(i) the transfer or obligation is made or incurred on or within two years before the day on which the initial filing of a petition commencing delinquency proceedings is filed under this chapter; and
(ii) the insurer voluntarily or involuntarily: (A) makes the transfer or incurs the obligation with actual intent to hinder, delay, or defraud a person to which the insurer is or becomes indebted on or after the day on which the transfer is made or the obligation is incurred; or (B) receives less than a reasonably equivalent value in exchange for the transfer or obligation.
(A) makes the transfer or incurs the obligation with actual intent to hinder, delay, or defraud a person to which the insurer is or becomes indebted on or after the day on which the transfer is made or the obligation is incurred; or
(B) receives less than a reasonably equivalent value in exchange for the transfer or obligation.
(3) Except to the extent that a transfer or obligation voidable under this section is voidable under other provisions of this chapter, a transferee or obligee of a transfer or obligation voidable under this section that takes for value and in good faith: (a) as the case may be: (i) has a lien on or may retain any interest transferred; or (ii) may enforce any obligation incurred; and (b) to the extent that the transferee or obligee gave value to the insurer in exchange for the transfer or obligation.
(a) as the case may be: (i) has a lien on or may retain any interest transferred; or (ii) may enforce any obligation incurred; and
(i) has a lien on or may retain any interest transferred; or
(ii) may enforce any obligation incurred; and
(b) to the extent that the transferee or obligee gave value to the insurer in exchange for the transfer or obligation.
(4) If a reinsurance transaction is avoided under this section: (a) the receiver shall tender to the reinsurer the value of any consideration transferred to the insurer in connection with the transaction less the amount of matured and liquidated liabilities owing by the reinsurer to the estate; and (b) the parties shall be returned to their relative positions before the implementation of the transaction avoided.
(a) the receiver shall tender to the reinsurer the value of any consideration transferred to the insurer in connection with the transaction less the amount of matured and liquidated liabilities owing by the reinsurer to the estate; and
(b) the parties shall be returned to their relative positions before the implementation of the transaction avoided.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.