The Court, having reviewed the ex parte application and supporting papers of Petitioner Ricardo Lara, in his capacity as the Insurance Commissioner of the State of California (Commissioner), for an order of liquidation of Crusader Insurance Company (Crusader or Respondent) pursuant to Insurance Code section 1016, and good cause appearing, the Court finds that Crusader is insolvent.

WHEREFORE IT IS HEREBY ORDERED that:

1.       The Commissioner's status as Conservator of Crusader is terminated and is hereby appointed as Liquidator of Crusader, pursuant to Insurance Code section 1016; the Commissioner, as Liquidator, is directed to (i) liquidate and wind up the affairs of Respondent, (ii) conduct the business of Respondent, or so much as thereof may seem appropriate, (iii) pay or defer payment of all proper claims and obligations against Respondent accruing prior to or subsequent to his appointment as Liquidator; and he is directed to act in all ways and exercise all powers necessary for the purpose of carrying out this Order; without limiting the scope of the foregoing, this Order does not authorize the Commissioner, pursuant to Insurance Code section 1017, to dissolve Respondent or to sell or otherwise transfer its corporate charter and license(s);
2.       The Commissioner is authorized as Liquidator to take possession of all the assets of Respondent including books, records, and property, both real and personal, wheresoever situated.
3.       Title to all property and assets of Respondent, whether presently in Respondent's possession or discovered hereafter, wheresoever situated, is hereby vested in the Commissioner as Liquidator or his successor in office, in his official capacity as such Liquidator; and all persons are enjoined from interfering with the Commissioner's possession and title thereto;
4.       The Commissioner as Liquidator is authorized to pay for his costs in bringing and maintaining this action, and such other actions as are necessary to carry out his functions as Liquidator, out of the funds and assets of Respondent; and if there are insufficient funds, to pay his costs out of the Insurance Fund, pursuant to Insurance Code section 1035;
5.       The Commissioner as Liquidator is authorized to initiate such equitable or legal actions or proceedings in this or other states as may appear to him necessary to carry out his functions as Liquidator, including foreclosing on any security interests in favor of Respondent;
6.       The Commissioner as Liquidator is authorized to appoint and employ special deputies, estate trust managers, other professionals, clerks, and assistants and to give each of them such power and authority as he may deem necessary; and the Commissioner as Liquidator is authorized to compensate these persons from the assets of Respondent as he may deem appropriate; Joseph Holloway is hereby appointed as Deputy Liquidator empowered to carry out any and all duties and exercise the authority of the Liquidator granted herein and the Insurance Code; and Scott Pearce is hereby appointed as Liquidation Manager empowered to carry out any and all duties and exercise the authority of the Liquidator and Deputy Liquidator, and as may be delegated by the Liquidator and Deputy Liquidator;
7.       The Commissioner as Liquidator is authorized to divert, take possession of, and secure all mail of Respondent, in order to screen such mail, and to effect a change in the rights to use any and all post office boxes and other mail collection facilities used by Respondent;
8.       The Commissioner as Liquidator is authorized to pay all reasonable costs of operating Respondent (including direct and allocated direct costs, direct and allocated general and administrative costs and overhead, and other allocated costs) out of funds and assets of Respondent; and if there are insufficient funds, to pay for his costs out of the Insurance Fund, pursuant to Insurance Code section 1035;
9.       The Commissioner as Liquidator, pursuant to Insurance Code section 1037, subdivision (g), is authorized to invest and reinvest assets through an investment pool consisting exclusively of assets from conserved or liquidated estates; providing that, to the extent the Commissioner as Liquidator invests and reinvests through such an investment pool, such investments and re-investments may exceed $100,000;
10.       The Commissioner as Liquidator is authorized to pay as expenses of administration all expenses heretofore incurred by the Commissioner as Conservator, to the extent such expenses are presently unpaid; and the Commissioner as Liquidator is authorized to pay, upon presentation, the full amount of any checks or drafts which have been issued by him, in his capacity as Conservator, and which are outstanding;
11.       The Commissioner as Liquidator, pursuant to Insurance Code section 1037, subdivision (d), is authorized to dispose of any excess property of Respondent by any commercially reasonable method, including, but not limited to, sales at public auctions or sales in bulk to the high bidder;
12.       The Commissioner as Liquidator is authorized to assume or reject, or to modify, any executory contracts, including without limitation, any lease, rental, or utilization contract or agreement (including any schedule to any such contract or agreement), and any license or other arrangement for the use of computer software of business information systems, to which Respondent is a party or as to which Respondent agrees to accept an assignment of such contract; providing that the Commissioner as Liquidator is directed to effect any such assumption or rejection or modification of any executory contract not later than within 120 days after the entry of this Order, unless such date is extended by application to and further order of this Court; all executory contracts not expressly assumed by the Commissioner as Liquidator are hereby deemed rejected; any party to a contract rejected by the Commissioner as Liquidator pursuant to this Order is permitted to file a proof of claim against the liquidation estate, which claim shall be treated in accordance with Insurance Code section 1010, et seq.;
13.       Respondent and all former and present officers, directors, agents, and employees of Respondent are directed to deliver to the Commissioner as Liquidator all assets, books, records, equipment, and other property of the Respondent, wheresoever situated;
14.       All Respondent's funds and assets, including certificates of deposit, bank deposits, and mutual fund shares, in various financial depository institutions, including banks, savings and loan associations, industrial loan companies, mutual funds, or stock brokerages, wheresoever situated, are hereby vested in the Commissioner as Liquidator and subject to withdrawal upon his order only;
15.       All persons who maintain records for Respondent, pursuant to written contract or any other agreement, are ordered to continue to maintain such records and to deliver them to the Commissioner as Liquidator upon his request;
16.       All agents of Respondent, and all brokers who have done business with Respondent, shall make remittances of all funds collected by them or in their hands directly to the Commissioner as Liquidator; this obligation to remit collected funds is continuing in nature;
17.       All persons having possession of any lists of policyholders or escrow holders of Respondent, are ordered to deliver all such lists to the Commissioner as Liquidator; all persons are enjoined from using any such lists or any information contained therein without the consent of the Commissioner as Liquidator;
18.       Respondent and its respective officers, directors, agents, servants, employees, successors, assigns, affiliates, and other persons or entities under their control, and all persons or entities in active concert or participation with them, and each of them, shall turn over to the Commissioner as Liquidator any and all records, documentation, charts, and/or descriptive material of all funds, assets, property (owned beneficially or otherwise), and all other assets of Respondent, wherever situated, and all books and records of accounts, title documents, and other documents in their possession or under their control, which relate, directly or indirectly, to (i) assets or property owned by or held by Respondent or (ii) the business or operations of Respondent;
19.       All insurance policies issued by Respondent are hereby terminated and canceled effective thirty (30) days following the issuance of this Order, and the Commissioner as Liquidator is directed to notify promptly all policyholders of such policy termination and cancellation by First Class Mail at the last known address of such policyholders; and the Commissioner as Liquidator, in his sole discretion, is authorized to terminate and cancel any policies issued by Respondent that are not covered by the preceding sentence or that were issued by a fronting insurer and reinsured, in whole or in part, by Respondent;
20.       In conjunction with this proceeding, all prior injunctions and other orders of this Court, except to the extent expressly modified herein, are reaffirmed and remain in full force and effect; and all powers and authority granted to the Commissioner as Liquidator under this Order are in addition to and not in limitation of the powers of the Commissioner as Liquidator under the Insurance Code and any other statutory or applicable case law;
21.       The rights and liabilities of claimants, creditors, shareholders, policyholders, escrow holders, and all other persons interested in the assets of Respondent, including the State of California, are fixed as of the date of the entry of this Order prayed for herein;
22.       All funds and accounts in the name of Respondent, or the Commissioner as Conservator, in various banks or any other institutions, wheresoever situated, are hereby vested in the Commissioner as Liquidator and subject to withdrawal at his direction only, and this Order does not convert funds held in a fiduciary capacity to general assets of the Liquidator;
23.       Except with leave of court issued after a hearing in which the Commissioner as Liquidator has received reasonable notice, all persons are enjoined from obtaining preferences, judgments, attachments or other liens, or making any levy against Respondent or its assets or property, and from executing or issuing or causing the execution or issuance of any court attachment, subpoena, replevin, levy, execution, or other process for the purpose of impounding or taking possession of or interfering with or creating or enforcing a lien upon any property or assets owned or in the possession of Respondent or its affiliates, or the Liquidator appointed herein, wheresoever situated, and from doing any act interfering with the conduct of said business by the Commissioner as Liquidator;
24.       All persons, except by leave of court obtained after reasonable notice to the Commissioner as Liquidator, are enjoined from accelerating the due date of any obligation or claimed obligation; exercising any right of set-off; taking, retaining, retaking or attempting to retake possession of any real or personal property; withholding or diverting any rent or other obligation; doing any act or other thing whatsoever to interfere with the possession of or management by the Commissioner as Liquidator of the property and assets, owned or controlled by Respondent or in the possession of Respondent, or to in any way interfere with said Commissioner as Liquidator, or to interfere in any manner during the pendency of this proceeding with the exclusive jurisdiction of this Court over Respondent;
25.       Respondent, its officers, directors, governors, agents, and employees are enjoined from (i) transacting any of the business of Respondent, whether in the State of California or elsewhere, or (ii) disposing of, or assisting any person in the transfer or alienation of, the property or assets of Respondent, until further order of this Court;
26.       All persons are enjoined from instituting, prosecuting, or maintaining any action at law or suit in equity, including but not limited to actions or proceedings to compel discovery or production of documents or testimony, and matters in arbitration, against Respondent or against the Commissioner as Liquidator of Respondent, and from attaching, executing foreclosure upon, redeeming of, or taking any other legal proceedings against, any of the property or assets of Respondent, and from doing any act interfering with the conduct of said business by the Commissioner as Liquidator, except upon order from this Court obtained after reasonable notice to the Commissioner as Liquidator;
27.       Any and all provisions of any agreement entered into by and between any third party and Respondent including, by way of illustration, but not limited to, the following types of agreements (as well as any amendments, assignments, or modifications thereto) shall be stayed, and the assertion of any and all rights, remedies relating thereto shall also be stayed and barred, except as otherwise ordered by the Court, and the Court retains jurisdiction over any cause of action that has arisen or may otherwise arise under any such provision: financial guarantee bonds, promissory notes, loan agreements, security agreements, deeds of trust, mortgages, indemnification agreements, subrogation agreements, subordination agreements, pledge agreements, assignments of rents or other collateral, financial statements, letters of credit, leases, insurance policies, guaranties, escrow agreements, management agreements, real estate brokerage and rental agreements, servicing agreements, attorney agreements, consulting agreements, easement agreements, license agreements, franchise agreements, or employment contracts that provide in any manner that selection, appointment, or retention of a conservator or trustee by any court, or entry of an order such as hereby made, shall be deemed to be, or otherwise operate as a breach, violation, event of default, termination, event of dissolution, event of acceleration, insolvency, bankruptcy, or liquidation;
28.       All persons are enjoined from interfering with the possession, title, and rights of the Commissioner as Liquidator, in and to the property and assets of Respondent;
29.       All persons are enjoined from waste of the assets of Respondent; and
30.       Any and all claims against Respondent (except those policyholder claims already pending against Respondent, which are deemed filed), including those which in any way affect or seek to affect any of the assets of Respondent, wherever or however such assets may be owned or held, must be filed by no later than March 31, 2027 (the Claims Bar Date), together with proper proof thereof, in accordance with the provisions of Insurance Code section 1010, et seq., including, but not limited to Insurance Code section 1023; and the claim must be timely filed on the form provided by the Liquidator, together with proper proofs thereof, and must be supplemented with such further information as the Liquidator requests, in accordance with Insurance Code section 1023, subdivision (f). As provided in Insurance Code section 1024, any claims not filed by the Claims Bar Date shall be conclusively deemed forever waived and no action may be maintained thereon.