1940 - LR - Legislation: The Uniform Insurers Liquidation Act - 12p
Corporations doing business in several states have long faced the problem of ancillary receiverships when forced into insolvency.
Because of limited extraterritorial powers of receivers, delinquency has produced a series of diversified liquidation proceedings, which have in turn wreaked
havoc with the affairs of the company.'
Although there has been a vast improvement in national bankruptcy legislation, with the passage of the Chandler Act in 1938,2 so that the receivership device has been abandoned to a large degree by most corporations, insurance companies have been excluded from the Act.3
Consequently, they must still rely upon receivership and local statutory substitutes for insolvency proceedings.
To cope with the continued existence of the many problems of decentralization, and the expense and delay of ancillary receiverships still necessary for insurers, the Uniform Act was adopted.4
Like most uniform legislation, the Act attempts to cover a broad field.
If it is to be extensively used, it must afford remedies for problems that have defied solution for a long time.
In order to evaluate its efficiency, therefore, it is necessary to compare the existing law with the new provisions that are embodied in the Act.
1953 - LR - The Uniform Insurers Liquidation Act and Wisconsin Law, by Darrell L. Peck - 10p
1993 - LR - New York Court of Appeals Recognizes that Insured's Contractual Right to Notice of Cancellation Becomes Vested upon Insurer's Liquidation, by Joseph F. Muratore - 11p
People v. Security Life Ins. & Annuity Co., 78 N.Y. 114, 127 (1879) (concluding that "policyholders are creditors of the [insolvent] company for the present values of their policies" as of date of insurer's dissolution).
2009 0924 - GOV (Senate) - Systemic Risk and Resolution Issues / Experts’ Perspectives on Systemic Risk and Resolution Issues - [PDF-128p, VIDEO-CSPAN]
(p7) - Paul Volcker - ".....insurance companies, which I would say parenthetically I hope better regulatory systems will be developed, maybe not as part of this legislation but next year."
(p19) - Paul Volcker - "I would hope this committee would look at the question of national charters for insurance companies and bring them under—at least the big ones—under a framework so that something like AIG with similar problems can’t arise in the future."
(p49) - Ed PERLMUTTER (D-CO) - How do we resolve insurance companies?
Do you know?
We liquidate them through the insurance commissioner.
1953 - LR - The Uniform Insurers Liquidation Act and Wisconsin Law, by Darrell L. Peck - 10p
The United States District Court in New York recently handed down a decision which was based entirely on the Uniform Insurers Liquidation Act.'
Many persons, upon finding this law cited in the report, thought that the Commissioners on Uniform State Laws must have drawn up the law very recently, because most of them had never heard of it before. Surprisingly enough, however, the history of the U.I.L.A. dates back to the great depression of the 1930's.
Along with the financial crash of 1929 and the subsequent depression years, came forced liquidations 2 of a great number of businesses, many insurance companies among them.
Because of their peculiar nature, most states had special liquidation laws for insurance companies unlike their ordinary corporation liquidation laws.3