(1)
Notwithstanding the maintenance of securities with a custodian
pursuant to agreement, if the commissioner:
(a) Has reasonable cause to believe that the domestic
insurer:
(i) Is conducting its business and affairs in such a manner
as to threaten to render it insolvent;
(ii) Is in a hazardous condition or is conducting its
business and affairs in a manner that is hazardous to its
policyholders, creditors, or the public; or
(iii) Has committed or is committing or has engaged or is
engaging in any act that would constitute grounds for rendering
it subject to rehabilitation or liquidation proceedings; or
(b) Determines that irreparable loss and injury to the
property and business of the domestic insurer has occurred or may
occur unless the commissioner acts immediately;
then the commissioner may, without hearing, order the insurer and
the custodian promptly to effect the transfer of the securities
to another custodian approved by the commissioner. Upon receipt
of the order, the custodian shall promptly effect the transfer of
the securities. Notwithstanding the pendency of any hearing or
request for hearing, the order shall be complied with by those
persons subject to that order. Any challenge to the validity of
the order shall be made under chapter 48.04 RCW, however, the
stay of action provisions of RCW 48.04.020 do not apply. It is
the responsibility of both the insurer and the custodian to
oversee that compliance with the order is completed as
expeditiously as possible. Upon receipt of an order, there shall
be no trading of the securities without specific instructions
from the commissioner until the securities are received by the
new custodian, except to the extent trading transactions are in
process on the day the order is received by the insurer and the
failure to complete the trade may result in loss to the insurer's
account. Issuance of an order does not affect the custodian's
liabilities with regard to the securities that are the subject of
the order.
(2) No person other than the insurer has standing at the
hearing by the commissioner or for any judicial review of the
order.
[2008 c 234 § 5; 2000 c 221 § 6.]