Chapter 60B — Title, Construction, and Purpose

60B.01 Title, Construction, and Purpose This law is called the Insurers Rehabilitation and Liquidation Act. It sets up the rules for what happens when an … 60B.02 Persons Covered This section lists which insurance companies can be subject to these rehabilitation and liquidation proceedings. It … 60B.03 Definitions This section defines the key terms used throughout the insurance rehabilitation and liquidation law. It explains what … 60B.04 Jurisdiction and Venue This section explains who can start insolvency proceedings against an insurance company and which courts handle them. … 60B.05 Injunctions and Orders This section gives the receiver of a troubled insurance company the power to get court orders to protect the insurer's … 60B.06 Costs and Expenses of Litigation This section lets the court award costs and litigation expenses as it sees fit in insurance insolvency proceedings, … 60B.07 Cooperation of Officers and Employees Officers, managers, agents, and employees of a troubled insurance company must cooperate with the commissioner during … 60B.08 This section has been repealed from Minnesota law. 60B.09 Commissioner's Reports The commissioner must include information about insurance insolvency proceedings in a biennial report. This includes the … 60B.10 Continuation of Delinquency Proceedings Any insolvency proceeding that was already started before May 25, 1969 is treated as if it was started under this … 60B.11 Commissioner's Summary Orders The commissioner can issue orders to an insurance company to fix problems that could lead to insolvency. These orders … 60B.12 Court's Seizure Order If the commissioner shows a court that an insurance company is in trouble and policyholders could be harmed by delay, … 60B.13 Commissioner's Seizure Order In a true emergency, the commissioner can seize an insurance company's property and records without waiting for a court … 60B.14 Conduct of Hearings in Summary Proceedings Hearings in summary insurance proceedings are private unless the insurer asks for them to be public. All records and … 60B.15 Grounds for Rehabilitation This section lists the reasons the commissioner can ask a court to order the rehabilitation of an insurance company. … 60B.16 Rehabilitation Orders When a court orders rehabilitation of an insurance company, the commissioner becomes the rehabilitator and takes control … 60B.17 Powers and Duties of Rehabilitator The rehabilitator has broad powers to reform and revitalize a troubled insurance company. The rehabilitator can hire and … 60B.171 Use, Sale, or Transfer of Assets During Rehabilitation During the rehabilitation of a health maintenance organization, the rehabilitator can use, sell, or transfer the HMO's … 60B.18 Actions by and Against Rehabilitator When a rehabilitation order is entered, the rehabilitator can ask courts to pause any pending lawsuits involving the … 60B.181 Notice Regarding Rehabilitation or Liquidation Proceeding When an HMO is in insolvency proceedings, the rehabilitator or liquidator must let interested parties know they can … 60B.19 Termination of Rehabilitation If the rehabilitator decides that trying to save the insurance company would just increase losses, the rehabilitator can … 60B.191 Claims Regarding Rehabilitation and Liquidation of Health Maintenance Organizations This section sets the order in which claims are paid when an HMO is being rehabilitated or liquidated. Administrative … 60B.193 Liability of Enrollees When a court orders the rehabilitation or liquidation of an HMO, doctors and other health care providers cannot bill … 60B.20 Grounds for Liquidation This section lists the reasons the commissioner can ask a court to liquidate (shut down and sell off) an insurance … 60B.21 Liquidation Orders A liquidation order appoints the commissioner as the liquidator who takes ownership of all the insurer's property, … 60B.22 Continuance of Coverage Insurance policies continue in force for at least 30 days after a liquidation order, or until the policy expires, or … 60B.23 Dissolution of Insurer The commissioner can ask the court to dissolve (permanently end) an insurance company at the same time as or after a … 60B.24 This section has been repealed from Minnesota law. 60B.25 Powers of Liquidator The liquidator has broad powers to wind down an insurance company, including collecting debts, selling property, hiring … 60B.26 Notice to Creditors and Others The liquidator must notify all known and expected claimants about the liquidation by mail, notify insurance … 60B.27 This section has been repealed from Minnesota law. 60B.28 Actions by and Against Liquidator When a liquidation order is entered, all lawsuits against the insurer are stopped. The liquidator can ask the court to … 60B.29 Collection and List of Assets The liquidator must make a list of all the insurer's assets as soon as possible after the liquidation order. One copy … 60B.30 Fraudulent Transfers Prior to Petition Transfers made by an insurer within one year before a rehabilitation or liquidation petition can be reversed if they … 60B.31 Fraudulent Transfers After Petition Transfers of an insurer's property made after a rehabilitation or liquidation petition is filed can be valid if the … 60B.32 Voidable Preferences and Liens The liquidator can reverse preferential transfers made to creditors within one year before the liquidation petition if … 60B.33 Claims of Holders of Void or Voidable Rights A creditor who received a voidable preference or fraudulent transfer cannot have their claim approved in the liquidation … 60B.335 Federal Home Loan Bank Rights; Collateral Pledged by Insurer-members When an insurance company that belongs to a Federal Home Loan Bank goes through insolvency proceedings, the bank can … 60B.34 Setoffs and Counterclaims This section sets up the rules for how the person in charge of winding down an insolvent insurance company (the … 60B.35 Assessments This section explains how people who are owed money by an insolvent insurance company can file their claims. It sets … 60B.36 This section describes the duties of agents and brokers who did business with an insolvent insurance company. They must … 60B.365 Reinsurer's Liability This section addresses special rules for handling reinsurance claims during the liquidation of an insurance company. It … 60B.37 Filing of Claims This section sets out the process for filing proofs of claim against an insolvent insurance company. It explains what a … 60B.38 Proof of Claim This section covers special types of claims in insurance company liquidation, including claims by guaranty associations … 60B.39 Special Claims This section explains how disputed claims against an insolvent insurance company are resolved. If the liquidator … 60B.40 Special Provisions for Third-party Claims This section covers how the liquidator may withhold funds during the distribution process to cover potential claims that … 60B.41 Disputed Claims This section establishes procedures for hearings on claims against an insolvent insurance company. It describes how the … 60B.42 Claims of Surety This section describes the liquidator's powers to avoid certain transfers of property made by the insolvent insurance … 60B.43 Secured Creditors' Claims This section explains how secured creditors are treated during the liquidation of an insurance company. It describes the … 60B.435 Qualified Financial Contracts This section addresses the special treatment of certain secured claims and setoff rights during insurance company … 60B.44 Order of Distribution This section sets the order of priority for paying claims when an insurance company is liquidated. It lists the … 60B.45 Liquidator's Recommendations to the Court This section describes how the liquidator reviews and recommends action on claims filed against the insolvent insurance … 60B.46 Distribution of Assets This section sets out the rules for distributing the assets of a liquidated insurance company to approved claimants. It … 60B.47 Unclaimed and Withheld Funds This section explains what happens to money that is left over after a liquidation if no one claims it. Unclaimed funds … 60B.48 Termination of Proceedings This section describes how the liquidation process is officially ended. When all assets have been collected and … 60B.49 Reopening Liquidation This section allows a closed liquidation case to be reopened if there is a good reason, such as finding additional … 60B.50 Disposition of Records During and After Termination of Liquidation This section covers what happens to the records of a liquidated insurance company. The commissioner decides which … 60B.51 External Audit of Receiver's Books This section allows the court to order independent audits of the books and records kept by the commissioner during an … 60B.52 Conservation of Property of Foreign or Alien Insurers Found in This State This section allows the Minnesota commerce commissioner to ask the court for an order to protect the property of an … 60B.53 Liquidation of Property of Foreign or Alien Insurers Found in This State This section allows the commissioner to ask the court for permission to liquidate the Minnesota assets of an … 60B.54 Foreign Domiciliary Receivers in Other States This section explains what happens to the Minnesota assets of an insurance company when a liquidator is appointed in … 60B.55 Ancillary Formal Proceedings This section sets up the process for appointing an ancillary receiver in Minnesota when an insurance company is being … 60B.56 Ancillary Summary Proceedings This section gives the Minnesota commissioner the sole authority to start summary proceedings against the Minnesota … 60B.57 Claims of Nonresidents Against Insurers Domiciled in This State This section explains where people from other states or countries must file their claims when a Minnesota-based … 60B.58 Claims of Residents Against Insurers Domiciled in Reciprocal States This section explains how Minnesota residents can file claims against an insurance company that is being liquidated in … 60B.59 Attachment, Garnishment and Levy of Execution This section says that no one can use attachment, garnishment, or levy of execution against an insolvent insurance … 60B.60 Interstate Priorities This section sets rules for how claims are prioritized when an insurance company liquidation involves multiple states. … 60B.61 Subordination of Claims for Noncooperation This section penalizes ancillary receivers in other states who do not cooperate with the Minnesota liquidator. If an …