According to the Insurer Receivership Model Act, the state court is responsible for initiating receivership proceedings, while the state insurance commissioner is appointed as the receiver.
As stated in the Insurer Receivership Model Act (IRMA), the state court has to commence proceedings over the receivership, and the state insurance commissioner is appointed as the receiver. This process is designed to ensure that the insurance company's obligations are met and the policyholders are protected when the company is facing insolvency issues.
The IRMA serves as a regulatory framework for handling the rehabilitation or liquidation of insolvent insurers. By placing the insurance commissioner in the receiver's role, there is a level of expertise ensured in managing the complex process of an insurance company's receivership.
So, the state court initiates the receivership proceedings in accordance with IRMA, and the state insurance commissioner is entrusted with the role of receiver to manage the affairs of the insolvent insurance company effectively and protect the interests of the affected parties.