What is the test for obtaining an order appointing a conservator under section 1011 of the Insurance Code?

California, United States of America


The following excerpt is from Hesperia Land Development Co. v. Superior Court In and For Los Angeles County, 184 Cal.App.2d 865, 7 Cal.Rptr. 815 (Cal. App. 1960):

'In the Rhode Island case the commissioner obtained an order appointing him conservator. The company sought a writ of mandate directing the superior court to vacate the order, contending, among other points, that the facts did not justify the commissioner's action. The court refused to issue the writ, saying, 'The statute, as construed by the California courts, requires only that the commissioner file a verified application stating that he has found one, or more, of the statutory grounds to exist. 'In making his application under section 1011 of the Insurance Code, the commissioner does not seek a judicial appointment and a judicial ruling that the company is in fact delinquent. By his application the commissioner merely represents that he has found certain conditions to exist and has made his official administrative determination to proceed as authorized by the statute. In obtaining [his original] ex parte order, the commissioner is not required to show to the court that the company was in fact in a hazardous condition, but only that he, as a state officer, invested by legislative authority with the power, has so 'determined' and 'found." Caminetti v. Imperial Mut. L. [184 Cal.App.2d 873] Ins. Co., 59 Cal.App.2d 476, 487, 139 P.2d 681, 687; emphasis added.' 95 Cal.App.2d at pages 230, 231, 212 P.2d at page 973.

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