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People ex rel. Baylor v. Multi‐State Inter‐Insurance Exchange, 12 Ill. App.3d
1058, 299 N.E.2d 482 (1973). Under statute permitting exercise of discretion of
trial court to allow attorney's fees when record discloses evidence of bad faith
on part of pleader, trial court did not abuse its discretion in denying motion of
collector of assessment for fees and reasonable expenses against insurance
commissioner.
People ex rel. Gerber v. Central Casualty Co., 37 Ill. 2d 392, 226 N.E.2d 862
(1967). While receiver obtained order of liquidation fifteen days before the
appellant bank transferred funds sought to be recovered by the Director of
Insurance for the unpaid balance of a loan guaranteed by the insurance
company, the court held it had jurisdiction to decide the question of the bank's
liability to the Director in the liquidation procedure. However, the court held
that a court of equity does not have the power to exercise summary
proceedings against persons holding property under reasonably and adverse
claims.
People ex rel. Lowe v. Marquette Nat. Fire Ins. Co., 351 Ill. 516 (1933). On
request by the Director of Trade and Commerce, the Attorney General
petitioned for, and the court ordered liquidation of defendant insurance
company. The court appointed the director as liquidator and an individual
other than the Attorney General as counsel to the director. In rejecting the
insurance company's objection to payment of fees to counsel other than the
Attorney General, the Supreme Court held that the court had authority to
authorize employment of counsel and that because the state had no interest in
a liquidating insurance company, the Attorney General was not authorized or
required to act as counsel for the court appointed liquidator.
Rheinberger v. Security Life Ins. Co. of America, 4 F. Supp. 824 (N.D. Ill. 1933),
appeal dismissed, 72 F.2d 147 (1933). After a receiver was appointed for an
insolvent insurer, and approval of the receivership court was obtained for a
contract with another insurer, policyholders were prevented from intervening
for the purpose of attacking the court's approval of receivership. Further,
although it is the duty of the court to inquire into allegations by plaintiff that
amendments to the reinsurance contract were secured by or constitute fraud
or deceit upon the court, the court found no basis for such allegations.
Indiana
Louisiana
Indiana Department of Insurance v. Indiana Travelers Assurance Corp., 115 Ind.
App. 285, 58 N.E. 2d 761 (1945), transferred, 223 2d 37, 57 N.E. 2d 625. The court
held out the power to grant the extraordinary rewards of receivership lies in
the discretion of the court.
Brown v. Associated Insurance Consultants, Inc. v. Physicians Medical
Indemnity Association, Inc., v. Leme Reinsurance Limited, 951451 (La. App. 1
Cir. 4/4/96) 672 So.2d 324. The insurance commissioner brought a
proceeding to rehabilitate several insurers including Lloyd’s (Partnership).
The commissioner was serving as liquidator for another single business
enterprise that had an outstanding claim against Lloyd’s (Partnership). By
motion to the trial court, Defendants asserted that an ad hoc rehabilitator
should be appointed. The Trial Court refused to rule on the motion as moot
due to previously established cut off dates. The appellate court reviewed
this decision and ruled that the trial court has the power to control the
proceedings.