Subpart 3—Liquidation or voluntary administration of licensed insurers

Bank may apply to put insurer into liquidation or voluntary administration, or apply for reduction of value of contracts of insurance

151 Bank may apply for liquidation of insurers

(1)

The Bank may, in the case of a licensed insurer that may be put into liquidation under or in accordance with the Companies Act 1993, apply to the High Court to appoint a liquidator for the insurer.

(2)

The High Court may, on an application under subsection (1), appoint a liquidator for the licensed insurer if it is satisfied that—

(a)

the insurer is unable to pay its debts (and, for that purpose, section 287 of the Companies Act 1993 applies with all necessary modifications whether or not the insurer is a company); or

(b)

the insurer is failing to maintain a solvency margin; or

(c)

the insurer has persistently or seriously failed to comply with any direction, condition, or other requirement imposed by or under this Act or the regulations; or

(d)

it is just and equitable that the insurer be put into liquidation.

(3)

The High Court may, on the application of the Bank, appoint a liquidator for a body corporate that may be put into liquidation under or in accordance with the Companies Act 1993 if it is satisfied that the body corporate is carrying on insurance business in New Zealand without holding a licence in breach of section 15.

(4)

Subsection (3) does not limit subsections (1) and (2).

(5)

Nothing in this section limits or affects any other enactment that provides for the winding up, liquidation, or dissolution of any body corporate or any class of body corporate.