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appointed ancillary receiver of the Missouri insurer. Both insurers then
excepted to subject matter jurisdiction and venue. The appellate court
affirmed the dismissal of the action based on lack of subject matter
jurisdiction. The court noted that both Louisiana and Missouri have adopted
the Uniform Insurers Liquidation Act and that the Act's "statutory scheme for
receiverships is comprehensive and exclusive" [emphasis by court].
Accordingly, all persons asserting claims, including the plaintiff state officials,
were required to file in the parish court in which the liquidations were pending,
or, in the case of the Missouri insurer, in the parish court in which the ancillary
receiver had been appointed. The Court rejected a claim that the objection
was to venue and had therefore been waived.
Missouri
Medallion Ins. Co. v. Wantenbee, 568 S.W.2d 599 (Mo. App. 1978). The
dismissal of agents' counterclaims against an insolvent insurer was affirmed by
the court on the ground that the exclusive statutory remedy for the agents to
pursue their claim was in the liquidation proceeding.
State ex rel. ISC Financial Corp. v. Kidder, 684 S.W. 2d 910 (Mo. App. 1985). The
receivership court ordered the Director of Insurance, as receiver of an
insolvent carrier, to file a final settlement statement and discharge petition in
an on‐going liquidation proceeding. The same order substituted a trustee for
the receiver, and imposed upon the trustee the same duties that the receiver
was performing prior to his discharge. In reversing the receivership court, the
Missouri Court of Appeals held that the State of Missouri had established a
"self‐contained and exclusive statutory scheme" for the liquidation of an
insurance company, and that the scheme "makes no provision for the
appointment of a trustee to take over the duties of the director of insurance
acting as receiver." 684 S.W.2d at 913.
State ex rel. St. Louis Mutual Life Ins. Co. v. Mulloy, 330 Mo. 951, 52 S.W.2d 469
(1932). A policyholder was held not able to challenge the legality of the
formation of a mutual life insurance company which was permitted to engage
in both stock and mutual business under a reorganization plan approved by
the Missouri Attorney General. In noting that the Missouri insurance code
provided the exclusive mechanism for the supervision and regulation of
insurance companies, the court noted the policyholders should have made a
demand on the Missouri insurance commissioner rather than pursue this
remedy. Therefore, the trial court judge had no authority to hear or rule on the
petition.
Montana Bennet v. Glacier General Assurance Company, 748 P.2d 464 (Mont. 1987).
Borrowers who deposited funds with an assurance company in exchange for
financial guarantees, moved to intervene in the liquidation proceedings of the
assurance company, to assert their claims for return of the funds. The
Montana Supreme Court held that the liquidation act barred the borrowers
from intervening. The Court held that the intervenors' petitions in District
Court constituted actions against the insurer or Liquidator within the meaning
of Montana statutory law. The Court relied on the statutory language which
provided that "no action at law or equity may be brought against the insurer or
liquidator" once liquidation is ordered. Further, the Court held that the
intervenors attempted to shortcut the liquidation process, contrary to the
liquidation act, and therefore the Court affirmed the District Court's dismissal
of the petitions for return of the funds.
New Jersey
Superintendent of Ins. of New York as Liquidator of Union Indemnity Ins. Co. of
N.Y. v. Intern. Equip. Leasing, Inc., 247 N.J. Super. 119 (App. Div. 1991), cert.