(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
(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
(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.
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