Insurance: Conservation and Liquidation Office.

Existing law authorizes the Insurance Commissioner to petition the superior court of the county in which an insurer has its principal office for an order vesting title of all assets of that insurer in the commissioner, in his or her official capacity, under specified circumstances. Upon taking possession of the property and business, the commissioner is authorized to act, except as specified, as either conservator or liquidator. Existing law provides that there is associated with the Department of Insurance a Conservation and Liquidation Office with certain duties and obligations. This bill would require the Insurance Commissioner, through the Conservation and Liquidation Office, to develop a report of allowed claims for corporations, limited liability companies, limited liability partnerships, and partnerships. The bill would require the office to contact the claimants whose claims have been allowed, as provided. The bill would require the receiver, the Insurance Commissioner, or the Conservation and Liquidation Office, as applicable, upon receipt of notice that an allowed claim has been assigned to another party, to take specified actions within 30 days, including changing the payee designation to reflect the claim purchaser. The bill would prohibit the office from accepting a claim assignment request 30 days or less before distribution of the claim or 60 days after the claim distribution has been made, and would allow the office to charge a fee to the party requesting the reassignment of the claim to cover the reasonable costs of administering the reassignment, not to exceed $250. The bill would also provide that the office be held harmless from and indemnified against any harm or economic loss suffered by the claim purchaser due to misrepresentation by the assignor.