Mass. Gen. Laws ch. 175 § 180C
If the commissioner deems that a domestic company which is the subject of a rehabilitation proceeding under section one hundred and eighty B, or which may properly be the subject of such a proceeding for any cause referred to in said section, hereinafter referred to as the company, is insolvent and that it should be liquidated, he shall make application to the court for a decree authorizing him to liquidate the company. The court, after notice to all known creditors and stockholders of the company and a full hearing, may order its liquidation and appoint the commissioner as permanent receiver thereof. The pertinent provisions of section six and of section one hundred and eighty B shall apply in case of any application under this section.
Upon the entry of a decree ordering liquidation of a company the receiver shall proceed forthwith to liquidate the business thereof. Subject to the approval of the court, he may sell or otherwise dispose of the real and personal property, or any part thereof, and sell or compromise all choses in action, of the company. He shall endeavor to obtain a proposal from a solvent company or companies to take over or assume the policies of the company in whole or in part, or to take over or assume, on modified terms, the liabilities of the company to its policyholders, and shall submit to the court such proposal as he deems best for the interest of the policyholders. He may, with the authority of the court, which it may give if in its opinion the best proposal in the interest of the policyholders has been obtained, execute such contracts and make such assignments and transfers as may be necessary to carry such proposal into effect.
Within one hundred and twenty days of a final determination of insolvency of a company by the supreme judicial court, the receiver shall make application to the supreme judicial court for approval of a proposal to disburse assets out of such company's marshalled assets from time to time as such assets become available, to the Massachusetts Insurers Insolvency Fund, the Massachusetts Life and Health Insurance Guaranty Association, and to any similar organization in another state, such fund, association or organization hereinafter collectively referred to as Funds. The supreme judicial court may approve or disapprove the proposal in whole or in part.
Such proposal shall at least include provision for:
The receiver's proposal shall provide for disbursements to the Funds in amounts at least equal to the payments made or to be made thereby for which such Funds could assert claims against the receiver, and shall further provide that if the assets available for disbursement from time to time do not equal or exceed the amount of such payments made or to be made by the Funds then disbursements shall be in the amount of available assets.
Notice of such application shall be given to the Funds in and to the commissioners of insurance of each of the states in which the insurer was doing business. Any such notice shall be deemed to have been given when deposited in the United States mails, first class postage prepaid, at least thirty days prior to submission of such application to the supreme judicial court. Action on the application may be taken by the supreme judicial court provided the above required notice has been given and the proposal complies with this section.
The rights and liabilities of the company and of its creditors, except those holding contingent claims, and of its policyholders, stockholders or members, and of all other persons interested in its assets, shall, unless otherwise ordered by the court, be fixed as of the date of the decree ordering liquidation. The rights of claimants holding contingent claims shall be determined as provided in sections one hundred and eighty G and one hundred and eighty H.
Mutual debts or mutual credits, whether arising out of one or more contracts between an insolvent insurer and another insurer, in connection with any action or proceeding under this chapter shall be set off and the balance shall be allowed or paid except as hereinafter provided. No set off shall be allowed in favor of any insurer where:
Mass. Gen. Laws ch. 175, § 180C