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instance to offer comments with respect to particular matters pending on the
receivership.
Angoff v. American Financial Security Life Insurance Company, 869 S.W.2d
90 (Mo. App. 1993). An insurer appealed an Order of Rehabilitation. The
Court of Appeals affirmed the trial court's order of rehabilitation and upheld
the decision that the insurer was operating in hazardous condition. The
Court held that the Director of the Department of Insurance did not abuse
his discretion in placing the insurer into rehabilitation proceedings and that
the director has discretion as to what remedial action to take under the
insolvency statutes. The Court upheld the trial court's findings that AFSLIC
was operating in hazardous conditions, in part, because of its reliance on
reserve credits from a Lloyd's treaty and AFSLIC's methodology for
computing the reinsurance reserve credits.
State ex enf. McKittrick ex rel. Maloney v. Fidelity Assurance Association, 352
Mo. 725, 179 S.W.2d (1944). In rejecting the Missouri insurance commissioner's
petition for intervention in an action involving an insolvent West Virginia
insurance company, the court noted that the Missouri insurance code did not
require that only the Missouri commissioner should institute a suit for
appointment as receiver of a foreign insurance company, particularly, when
the assets that were deposited by the foreign insurance company were assets
under the control of Missouri and were used as security for annuity contracts.
State of Missouri ex rel. ISC Financial Corporation v. Kidder, 684 S.W.2d 910
(Mo. App. 1985). The sole shareholder of an insolvent insurance company
sought a writ of prohibition against the trial court to prevent closing of the
receivership estate. The appellate court ruled that the closing of the
receivership was premature as of the pendency of a number of unresolved
matters, even though the estate held in excess of $17,000,000 of assets over
its liabilities. Further, the appointment of a trustee was improper since only
the Missouri insurance commissioner can conduct the affairs of the
receivership under the supervision of the court. Finally, the law providing for
the closing of the estate five years after it is "dissolved" does not apply to the
order of liquidation but is designed to terminate the entire proceeding
following the dissolution of the insolvent.
State ex rel. Missouri State Life Ins. Co. v. Hall, 330 Mo. 1107, 52 S.W.2d 174
(1932). In rejecting the authority of a court to appoint a receiver for an
insolvent insurance company, the court upheld the constitutionality of the 1929
Missouri insurance code provisions dealing with liquidation and the power of
the Missouri insurance commissioner to request the appointment of a receiver.
As a result, the shareholder suit against the company and management should
be properly dismissed.
Nebraska
In re Director of Insurance, 141 Neb. 488, 3 N.W.2d 922 (1942). The Nebraska
Supreme Court determined that the Iowa court had power to appoint a
receiver for an insolvent insurer where the action was filed by the Attorney
General, acting for the Auditor of Public Accounts, for the purpose of
dissolving the corporation and distributing its effects. The court noted,
though, that the power of the Attorney General to bring an action for
dissolution of an insolvent insurance company and the distribution of its
effects must be conferred by statute, and, in the absence thereof, such a
proceeding would not be within the jurisdiction of the court; and that after
such decree is rendered, if under the circumstances of the case the court in its
discretion believes that the object of the action would be better served by the