UILA - Uniform Insurers Liquidation Act

  • 1940 - LR - Legislation: The Uniform Insurers Liquidation Act - 12p
  • 1953 - LR - The Uniform Insurers Liquidation Act and Wisconsin Law, by Darrell L. Peck - 10p
  • 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.