20-613. Commencement of delinquency proceedings

A. The director of insurance shall commence any such proceeding, the attorney general representing him, by an application to the court for an order directing the insurer to show cause why the director should not have the relief prayed for. On the return of the order to show cause, and after a full hearing, the court shall either deny the application or grant the application, together with such other relief as the nature of the case and the interests of policyholders, creditors, stockholders, members, subscribers or the public requires.

B. The director may file with the superior court a certificate stating that the delinquency proceeding is of special public importance. On receipt of the certificate the presiding judge of the superior court immediately shall designate a judge to hear and determine the proceeding. The designated judge shall assign the proceeding for hearing at the earliest practicable date and cause the proceeding to be expedited in every way, including applications for temporary restraining orders, preliminary injunctions and orders appointing receivers. An expedited hearing under this subsection is in addition to the requirements of section 20-172, subsection A.

C. Pending proceedings commenced under section 20-169, the director is not precluded from commencing a delinquency proceeding under this article. The pendency of proceedings under section 20-169 is not a ground for denying an application for an order under this article.