1. Upon filing by the Commissioner in any district court of this state of his or her verified petition alleging any ground for a formal delinquency proceeding against an insurer under this chapter and that the interests of the insurer’s policyholders or creditors or the public will be jeopardized by delay, and setting forth the order deemed necessary by the Commissioner, the court shall, ex parte and without notice or hearing, issue the requested order. The requested order may:

(a) Direct the Commissioner to take possession and control of all or part of the property, books, accounts and records of the insurer and the premises occupied by it for transaction of its business; and

(b) Until further order of the court, enjoin the insurer and its officers, managers, agents and employees from removal, concealment or other disposition of its property, and from the transaction of its business, except with the Commissioner’s written consent.

2. The court’s order shall be for such duration, specified in the order, as the court deems necessary to enable the Commissioner to ascertain the insurer’s condition. On motion of any party or on its own motion, the court may hold such hearings as it deems desirable after such notice as it deems appropriate, and extend or shorten the duration or modify the terms of the order. The court shall vacate the seizure order if the Commissioner fails to commence a formal proceeding under this chapter after reasonable opportunity to do so; and a seizure order is automatically vacated by issuance of the court’s order pursuant to formal delinquency proceedings under this chapter.

3. Entry of a seizure order under this section does not constitute an anticipatory breach of any contract of the insurer.

(Added to NRS by 1971, 1903)