Idaho State Statutes - Idaho Attorney Directory

(1) The director as
rehabilitator may appoint one or more special deputies, who shall have all the
powers and responsibilities of the rehabilitator granted under the provisions
of this section, and the director may employ such counsel, clerks, and
assistants as deemed necessary. The compensation of the special deputy,
counsel, clerks, and assistants and all expenses of taking possession of the
insurer and of conducting the proceedings shall be fixed by the director, with
the approval of the court and shall be paid out of the funds or assets of the
insurer. The persons appointed under this section shall serve at the pleasure
of the director. In the event that the property of the insurer does not
contain sufficient cash or liquid assets to defray the costs incurred, the
director may advance the costs so incurred out of any appropriation for the
maintenance of the insurance department. Any amounts so advanced for expenses
of administration shall be repaid to the director for the use of the insurance
department out of the first available money of the insurer.
(2) The rehabilitator may take such action as he deems necessary or
appropriate to reform and revitalize the insurer. He shall have all the powers
of the directors, officers, and managers, whose authority shall be suspended,
except as they are redelegated by the rehabilitator. He shall have full power
to direct and manage, to hire and discharge employees subject to any contract
rights they may have, and to deal with the property and business of the
insurer.
(3) If it appears to the rehabilitator that there has been criminal or
tortious conduct, or breach of any contractual or fiduciary obligation
detrimental to the insurer by any officer, manager, agent, broker, employee,
or other person, he may pursue all appropriate legal remedies on behalf of the
insurer.
(4) If the rehabilitator determines that reorganization, consolidation,
conversion, reinsurance, merger, or other transformation of the insurer is
appropriate, he shall prepare a plan to effect such changes. Upon application
of the rehabilitator for approval of the plan, and after such notice and
hearings as the court may prescribe, the court may either approve or
disapprove the plan proposed, or may modify it and approve it as modified. Any
plan approved under the provisions of this section shall be, in the judgment
of the court, fair and equitable to all parties concerned. If the plan is
approved, the rehabilitator shall carry out the plan. In the case of a life
insurer, the plan proposed may include the imposition of liens upon the
policies of the company, if all rights of shareholders are first relinquished.
A plan for a life insurer may also propose imposition of a moratorium upon
loan and cash surrender rights under policies, for such period and to such an
extent as may be necessary.
(5) The rehabilitator shall have the power under sections 41-3326 and
41-3327, Idaho Code, to avoid fraudulent transfers.

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