What happens to the insurer during rehabilitation?

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Rehabilitation is a court-supervised process designed to stabilize a financially troubled insurer while keeping the business operating as a going concern. A rehabilitator is appointed to run the company and implement a plan aimed at restoring solvency, all under court oversight. Because the goal is to revive the insurer rather than shut it down, the legal entity itself continues to exist during the process, and it continues to service policies and meet claims under the rehabilitator’s supervision. The plan may involve restructuring debts, adjusting operations, transferring assets, or even transferring policies to another insurer, but the entity remains in existence through the rehabilitation. Only if rehabilitation cannot succeed would liquidation be pursued, which would end the insurer’s existence. Therefore, the insurer continues to exist after the receivership.