Final answer:
When the Commissioner takes over an insolvent insurance company, the first step is to attempt to rehabilitate the company. If rehabilitation is not possible, the next step is to sell all assets and pay any claims.
Step-by-step explanation:
When the Commissioner takes over an insolvent insurance company, the first step is to attempt to rehabilitate the company. This involves assessing the company's financial situation, developing a plan to restore its solvency, and implementing measures to improve its operations and financial stability.
If rehabilitation is not possible or unsuccessful, the next step would be to sell all assets and pay any claims. This would involve liquidating the company's assets, distributing the proceeds to creditors, and ensuring that policyholders receive their owed claims.
Appointing new officers or starting an investigation may be necessary in certain cases, but they are not typically the first step taken when the Commissioner takes over an insolvent insurance company. The focus is usually on trying to rehabilitate the company or, if that fails, liquidating its assets to pay off its obligations.