Learn About the Law
Get help with your legal needs
FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
Current as of May 05, 2022 | Updated by FindLaw Staff
(1) Subject to the other provisions of this section, the receiver may assume or reject an executory contract or unexpired lease of the insurer.
(2)(a) If there is a default in an executory contract or unexpired lease of the insurer, the receiver may not assume the contract or lease unless, at the time of the assumption of the contract or lease, the receiver:
(i) cures or provides adequate assurance that the receiver will promptly cure the default; and
(ii) provides adequate assurance of future performance under the contract or lease.
(b) This Subsection (2) does not apply to a default that is a breach of a provision relating to:
(i) the insolvency or financial condition of the insurer at any time before the closing of the delinquency proceeding;
(ii) the appointment of or taking possession by:
(A) a receiver in a case under this chapter; or
(B) a custodian before the commencement of the delinquency proceeding; or
(iii) the satisfaction of a penalty rate or provision relating to a default arising from a failure of the insurer to perform a nonmonetary obligation under the executory contract or unexpired lease.
(3) A claim arising from a rejection under this section or under a plan of rehabilitation or liquidation of an executory contract or unexpired lease of the insurer that is not assumed shall be determined, and shall be treated and classified as though the claim arose before the day on which a successful petition commencing the delinquency proceeding is filed.
Cite this article: FindLaw.com - Utah Code Title 31A. Insurance Code § 31A-27a-113. Executory contracts - last updated May 05, 2022 | https://codes.findlaw.com/ut/title-31a-insurance-code/ut-code-sect-31a-27a-113/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.
Get help with your legal needs
FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
Search our directory by legal issue
Enter information in one or both fields (Required)