POIZNER v. FREMONT GENERAL CORPORATION PART III
Allegations by plaintiff, the liquidator of an insolvent insurer, that defendant, the parent company of the insolvent insurer and of another subsidiary, misappropriated net operating losses of the insolvent insurer in order to reduce its own tax liability without compensating insolvent insurer, stated cause of action for conversion. Insurance Holding Company System Regulatory Act creates a comprehensive scheme for administrative enforcement and a judicial remedy to enforce administrative action. Subsidiary insurer allegedly injured by violation of act's provision requiring that parent treat its affiliates fairly and reasonably lacks a cause of action for damages under that provision of the act. Allegations that defendant made improper "distributions" of the assets of plaintiff and another subsidiary within the meaning of Insurance Code Sec. 1215.16 by misappropriating funds in the manners alleged stated a cause of action for recovery of the alleged improper distributions.
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