P&CNJmedium
Under N.J.S.A. 17:30C, when a New Jersey domestic insurer is found to be in hazardous financial condition, the DOBI Commissioner may petition the Superior Court for which form of delinquency proceeding?
Rehabilitation, conservation, or liquidation
BA federal bankruptcy filing under Chapter 11
CVoluntary dissolution by the policyholders only
DMandatory merger ordered by the Governor
Why this is the answer
Insurance insolvencies are carved out of the federal Bankruptcy Code and handled exclusively under state law. N.J.S.A. 17:30C empowers the DOBI Commissioner to petition the Superior Court to be appointed receiver and to rehabilitate, conserve, or liquidate troubled NJ-domiciled insurers.
Studying for the NJ Property & Casualty exam?
This question comes from our P&C bank. Take a free practice test — no signup.