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alleging a conspiracy to convert the assets of the insolvent insurance company.
In rejecting various motions to dismiss filed by the defendants, the court noted
the Minnesota nonconsensual long arm statute was applicable to the
nonresident defendants, including the bank, but also noted that the Texas
ancillary receiver was not an indispensable party to the proceeding although
the court would allow introduction of evidence to determine whether the
Texas ancillary receiver would be bound by the judgment. Finally, the court
rejected a challenge to the Minnesota conservator's legal capacity on the
theory that the West Virginia liquidator had not consented (when in fact the
liquidator had although there was a slight variance in timing).
New York
Van Schaick v. Astor, 153 Misc. 377, 274, N.Y.S. 322 (1934), reversed on other
grounds, 154 Misc. 543, 277 N.Y.S. 394. The insurance commissioner as
conservator of a foreign insurer duly licensed to do business in New York is
vested with the rights and burdened with the duties of an ancillary receiver of
the foreign corporation's assets within the state.
Van Schaick v. Jarcho Bros., Inc., 154 Misc. 10, 276, N.Y.S. 547 (1934). The rights
and duties of the insurance commissioner as conservator were those of an
ancillary receiver of a foreign corporation in an action by the commissioner to
recover premiums allegedly due on insurance policies. As an ancillary receiver,
the commissioner could collect and receive the debts, and demands and
collect other property of the corporation.
Ancillary Receiver ‐ Appointment
Arizona
State ex rel. Low v. Imperial Ins. Co. By and Through Ins. Commissioner of the
State of Calif., 140 Ariz. 426, 682 P.2d 431 (App. 1984). The court held that
there were no assets of the insolvent California insurer located in Arizona and
therefore there was no basis for appointing an ancillary receiver to liquidate
claims of Arizona residents.
California Quackenbush v. Superior Court, No. B112100 (Cal. Ct. App. Oct. 31, 1997),
reported in Mealey's Litig. Rep.‐Ins. Insolvency, Vol. 9, No. 11 at J1 (Nov. 5,
1997). Court denied writ of mandate seeking an ancillary receivership of
Centaur Insurance Company, a foreign insurer, finding that the limited
number of California claimants and the Insurance Commissioner's
extraordinary delay and improper purpose made an ancillary receivership
inappropriate.
Florida Florida Ins. Guaranty Assn. Inc. v. State ex rel. Department of Insurance, 400
So.2d 813 (Fla. App. 1981). The court cannot appoint the Florida insurance
commissioner as receiver to liquidate the Florida assets of a foreign insurer
when a receiver has not yet been appointed in the domiciliary state. The
purpose of the Uniform Insurers Liquidation Act is to secure equal treatment
for all creditors. A cardinal feature of that Act is the vesting of predominant
control of the insolvent insurer in the domiciliary receiver.
Op. Att'y Gen. 62‐19 (1962). On the grounds specified in the insurance code, it
is within the sound discretion of the insurance commissioner to apply for an
order appointing the commissioner as the ancillary receiver of a foreign
insurer. However, the commissioner is required to do so when either 1) there
has been a liquidation order in an insurer's domiciliary state and the
commissioner believes that there are sufficient assets to justify appointment of
an ancillary receiver; or 2) at least ten Florida residents that have a claim
against the receiver petition the commissioner for the appointment of an
ancillary receiver.