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SUPERIOR COURT OF CALIFORNIA
COUNTY OF SAN DIEGO
INSURANCE COMMISSIONER OF THE STATE
OF CALIFORNIA,
Applicant,
v.
GOLDEN EAGLE INSURANCE COMPANY, a
California corporation, MESA
REINSURANCE COMPANY, LTD., a
foreign corporation, and DOES 1 through 1000,
Respondents.
CASE NO. 00707637
ORDERS:
1) APPOINTING CONSERVATOR
AND 2) RESTRAINING
SPECIFIC ACTIVITIES
[Insurance Code §1011]
The verified Application for Order Appointing Conservator having been filed herein and it appearing to this Court from said Application that the Insurance Commissioner of the State Of California (the "Commissioner") has found Golden Eagle Insurance Company ("Golden Eagle) and Mesa Reinsurance Company, Ltd. ("Mesa Re"), to be in such a condition that their further transaction of business will be hazardous to their policyholders, creditors and the public, and good cause appearing,
IT IS HEREBY ORDERED that:
The Commissioner is appointed as Conservator of Golden Eagle and Mesa Re, and is directed as such to conduct the business of Golden Eagle and Mesa Re or so much thereof as to said Conservator may seem appropriate; and the Conservator is authorized as such Conservator, in his discretion, to pay or defer payment of all proper claims and all obligations against Golden Eagle and Mesa Re accruing prior to or subsequent to his appointment as Conservator;
The Conservator is authorized to take possession of all of Golden Eagle's and Mesa Re's assets, books, records, and property, both real and personal, wheresoever situated;
There is hereby vested in the Commissioner, and his successors in office, as Conservator title all of said property and assets of Golden Eagle and Mesa Re, wherever situated and enjoining all persons from interfering with the Conservator's possession and title thereto;
Golden Eagle and Mesa Re, their officers, directors, governors, agents and employees are enjoined from transacting any of the business of Golden Eagle and Mesa Re or from disposing of any property or assisting any person in the transfer or alienation of the property or assets until further order of this Court;
All persons are enjoined from instituting, prosecuting, or maintaining any action at law or suit in equity, including but not limited to matters in arbitration, against Golden Eagle and Mesa Re, or the Conservator, and from attaching, executing foreclosure upon, redeeming of or taking any other legal proceedings against any of the property of Golden Eagle and Mesa Re, and from doing any act interfering with the conduct of said business by the Conservator, except after an order from this Court, obtained after reasonable notice to the Conservator.
Golden Eagle and Mesa Re, and all officers, directors, agents and employees of Golden Eagle and Mesa Re must deliver to the Conservator all assets, books, records, equipment and other property of Golden Eagle and Mesa Re, wherever situated;
The Conservator is authorized to pay all reasonable costs of operating Golden Eagle and Mesa Re out of funds and assets of said respondents.;
All funds including certificates of deposit and bank accounts of Golden Eagle and Mesa Re in various banks in the State of California and in other banks wheresoever situated, are hereby vested in the Conservator and subject to withdrawal upon his order only;
All agents of Golden Eagle and Mesa Re and all brokers who have done business with Golden Eagle and Mesa Re shall make all remittances of funds collected by them or in their hands directly to the Conservator;
All persons having possession of any lists of policyholders of Golden Eagle and Mesa Re are ordered to deliver all such lists to the Conservator; that all persons are enjoined from using any such lists or any information contained therein without the consent of the Conservator;
The Conservator 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 Conservator;
The Conservator is authorized to appoint and employ special deputy commissioners as his agents and to employ and empower clerks and assistants as Conservator deems necessary for this proceeding. The Conservator may fix and pay reasonable compensation to such persons in accordance with the Conservator's Conservation and Liquidation Offices organizational chart and employee positions and respective salary ranges. The Conservator may pay all reasonable expenses of taking possession of the insurer and conducting these proceedings out of the funds or assets of Golden Eagle and Mesa Re, subject to an accounting to and approval by the Court;
The Conservator 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 Conservator, out of the funds and assets of Golden Eagle and Mesa Re;
The Conservator is authorized to invest and reinvest, in such a manner as the Conservator may deem suitable for the best interests of the creditors of Golden Eagle and Mesa Re, such portions of the funds and assets of Golden Eagle and Mesa Re in Applicant's possession which funds and assets are not immediately distributable to creditors; provided however, no investment or reinvestment shall be made which exceeds the sum of one hundred thousand dollars ($100,000) without first obtaining permission of the court;
The Conservator is authorized to appoint and employ under his hand and official seal, special deputy commissioners, as his agents, and to employ clerks and assistants and to give to each of them such powers as may by him be deemed necessary. The compensation of special deputy commissioners, clerks, and assistants appointed to carry out sections 1010-1062 of the Insurance code and all expenses of bringing and maintaining this proceeding and taking possession of, conserving, conducting, liquidation, disposing of or otherwise dealing with the business and property of Golden Eagle and Mesa Re, shall be fixed by the Commissioner, subject to the approval of the court, and shall be paid as specified in Insurance Code section 1035. If the property of Golden Eagle and Mesa Re does not contain cash or liquid assets sufficient to defray the cost of the services required to be performed under the terms of sections 1010 through 1062 of the Insurance Code, the commissioner may at any time or from time to time pay the cost of those services out of the appropriation for the maintenance of the Department. Any amounts so paid shall be deemed expense of administration and shall he repaid to the fund out of the first available moneys in the estates;
Karl L. Rubinstein has been so appointed as a Special Deputy Insurance Commissioner, and he is hereby appointed as Deputy Conservator. The Conservator, the Deputy Conservator and all of their consultants (and partners, shareholders or members of such consultants), agents, employees and officers shall be deemed public officers within the meaning of Insurance Code Section 1059 and other applicable law and, further, shall have no personal liability of any kind or nature for any of their acts or omissions pursuant to these proceedings or In connection therewith or related thereto.
Notwithstanding the requirements of Labor Code Section 200 through 203, the Commissioner shall have 14 days from the date of this Order to pay earned and unpaid wages ("Wages") that are required to be paid by said sections, upon the discharge or resignation of an employee, except that nothing herein shall shorten the time period set forth in Section 202. Labor Code Sections 203, 203.1, 203.5 and 216 shall not apply to Conservator or Golden Eagle for the nonpayment of Wages during said 14-day period. Nothing contained in this Order shall effect the priority of claims set forth in Insurance Code Section 1033 and nothing herein shall obligate the Conservator to pay wages In the event that Golden Eagle and Mesa Re not have sufficient assets.