Authority of the Insurance Commissioner to Appoint a Conservator or Receiver of Insurance Companies

March 28, 2016BSP CIRCULAR LETTER NO. CL-2016-028TO:All Banks   SUBJECT:Authority of the Insurance Commissioner to Appoint a Conservator or Receiver of Insurance Companies This is to advise all Banks of the authority of the Insurance Commissioner to appoint a conservator or receiver to take charge of, among others, the assets and liabilities of the insurance companies, pursuant to Sections 255 and 256 of the Insurance Code, which read as follows: "Section 255. If at any time before, or after, the suspension or revocation of the certificate of authority of an insurance company as provided in the preceding title, the Commissioner finds that such company is in a state of continuing inability or unwillingness to maintain a condition of solvency or liquidity deemed adequate to protect the interest of policyholders and creditors, he may appoint a conservator to take charge of the assets, liabilities, and the management of such company, collect all moneys and debts due to said company and exercise all powers necessary to preserve the assets of said company, reorganize the management thereof, and restore...