Download PDF - Goodmans

State ex rel. Cincinnati Life Assn's Assignee v. Matthews, 64 Ohio St. 419, 60
N.E. 605 (1901). Securities required to have been deposited with the insurance
commissioner by an insurance company are to be held in trust for the benefit
and protection of, and as security for, the policyholders of such company, so
that the assignee of such company cannot recover the securities from the
commissioner without first showing that such company is no longer liable to
any of its policyholders.
State ex rel. Safeguard Ins. Co. v. Vorys, 171 Ohio St. 109, 167 N.E. 2d 910 (1960).
Where Ohio insurer filed with the Ohio superintendent of Insurance a
certificate and deposit for the benefit of all its policyholders, and where Ohio
Superintendent of Insurance found that such corporation was not and was not
likely to become insolvent, Superintendent had duty to deliver to the
corporation the deposit which had been made to him by the insurer which had
now been merged into a foreign corporation.
State ex rel. Turner v. Union Casualty Ins. Co., 8 Ohio App. 285, 29 O.C.D. 491
(1917). Under the insurance code in Ohio, a deposit made by a foreign
insurance company with the insurance commissioner, as a prerequisite to
doing business in Ohio, should, on insolvency of insurance company, be
administered by the Ohio insurance commissioner under direction of court,
and should be described directly to policyholders entitled to share therein, and
should not be turned over to domiciliary receiver of company.
Oregon State ex rel. Driscoll v. Early American Insurance Corp., 84 Or. App. 252, 733
P.2d 919 (1987). Oregon ancillary receiver of Alabama insurer was allowed to
keep $30,000 insurance deposit for surety insurance to extent necessary to
settle claims against such insurer arising out of its other insurance business in
Oregon, with any excess to go to the domiciliary receiver.
Rhode Island Langdeau v. Narragansett Ins. Co., 94 R.I. 128, 179 A.2d 110, affirmed, 95 R.I. 4,
182 A.2d 322 (1962). The legislature enacted the Uniform Insurers Liquidation
Act knowing its prior enactments which required foreign insurers to deposit
trust funds with Rhode Island's general treasurer and to give up the trust fund
only after following specific procedures, including publication notice for six
months. It was found that the prior provisions were undisturbed by the
Uniform Insurers Liquidation Act and thus the prior laws were held to apply to
liquidate insurance companies.
South Carolina Clark v. Preferred Accident Ins. Co. of New York, 231 S.C. 167, 97 S.E.2d 498
(1957). The New York statutory liquidator of an insolvent surety company
sought to withdraw bonds held in South Carolina subject to a statutory deposit
requirement. No surety claims were pending in South Carolina. It was held
that the statutory deposit could be retained by South Carolina as an "other
asset" of the corporation for the protection of South Carolina policyholders
who were not surety creditors.
Wise v. Carolina Hail Ins. Co., 108 S.C. 504, 94 S.E. 535 (1918). It was held that
under Sections 2701 and 2708 of the Civil Code of 1912, an insurer's statutory
deposit held by the insurance commissioner was subject to claims of
policyholders before claims of creditors.
Texas
Virginia
Op. Att'y. Gen. WW‐497 (Tex. 1958). A general court order placing an insurance
company in receivership is sufficient authority for the State Treasurer to
release securities deposited with the Treasurer.
Andrews v. Cahoon, 196 Va. 790, 86 S.E.2d 173 (1955). A Virginia resident with
claim against insolvent New York insurer could proceed to enforce a lien
against the insurer's statutory deposit in Virginia, although the resident had