| | | A. Prior to the termination of any liquidation, | | rehabilitation or conservation proceeding, the court may | | take into consideration the contributions of the respective | | parties, including the association, the shareholders and | | policy owners of the impaired or insolvent insurer and any | | other party with a bona fide interest, in making an | | equitable distribution of the ownership rights of the | | impaired or insolvent insurer. In such a determination, | consideration shall must be given to the welfare of the | policyholders policy owners of the continuing or successor | | insurer. |
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| | | B. No distribution to stockholders, if any, of an impaired | or insolvent insurer shall may be made until and unless the | | total amount of assessments levied by the association with | | respect to the insurer have been fully recovered by the | | association. |
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| | | 5. Unfair trade practice. It shall be a prohibited unfair | trade practice for any person to make use in any manner of the | protection afforded by this chapter in the sale of insurance. |
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| | | 6. Recovery procedure; provisions. The recovery procedure | shall must provide that: |
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| | | A. If an order for liquidation or rehabilitation of an | | insurer domiciled in this State has been entered, the | receiver appointed under that order shall have has a right | | to recover on behalf of the insurer, from any affiliate that | | controlled it, the amount of distributions, other than stock | | dividends paid by the insurer on its capital stock, made at | | any time during the 5 years preceding the petition for | | liquidation or rehabilitation subject to the limitations of | | paragraphs B to D; |
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| | B. No such dividends shall distribution may be recoverable | | if the insurer shows that when paid the distribution was | | lawful and reasonable and that the insurer did not know and | | could not reasonably have known that the distribution might | | adversely affect the ability of the insurer to fulfill its | | contractual obligations; |
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| | | C. Any person who was an affiliate that controlled the insurer | at the time the distributions were paid shall be is liable up to | the amount of distributions he the person received. Any person | | who was an affiliate that controlled the insurer at the time the | distributions were declared shall be is liable up to the amount | of distributions he the person would have received if they had | | been paid immediately. If 2 or more persons are liable with | | respect to |
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