Dennis J. Hayes was appointed as special deputy superintendent of the New York Liquidation Bureau, the division that serves as the court-appointed fiduciary and receiver of insolvent or impaired insurers in the state.

Acting New York State Insurance Superintendent James J. Wrynn made the announcement Sept. 1 that Hayes, who has been with the bureau since 1996, would replace Mark Peters, who served as head of the NYLB since April 2007.

In a statement, Wrynn thanked Peters for his “fine leadership” of the NYLB and was pleased to announce he would be staying on as a special advisor.
Prior to his appointment to head the division, Hayes served as assistant special deputy superintendent.

The overall goal of the NYLB is to protect policyholders and creditors of insolvent or impaired insurers by maximizing assets and resolving liabilities, returning rehabilitated companies to the marketplace, or distributing the proceeds of the company to creditors in a timely manner.

If rehabilitation is not possible, the NYLB carries out an orderly liquidation of insolvent companies. It administers claims and, where there is coverage, makes payments from insurer assets and the state’s insurance security funds.

In overseeing the NYLB, which receives no taxpayer funding, Hayes will report to Wrynn.

“Dennis is exceptionally qualified for this position and possesses an intimate knowledge of the Liquidation Bureau,” Wrynn said. “He is well positioned to continue the important progress that the NYLB has made in the last two years, and to maintain its integrity and accountability.”

Gov. David A. Paterson called Hayes “an excellent choice” to lead the NYLB.

“As a highly regarded and well established attorney and executive in the field of insolvency, he has the experience needed to ensure the NYLB’s integrity and accountability as it continues its important work of protecting the policyholders and creditors of financially impaired insurers,” the governor said.

Hayes has 27 years of experience as an attorney specializing in insurance, reinsurance and receivership matters. He has served as executive director for receivership operations for the NYLB, managing the rehabilitations of Interboro Mutual Indemnity Co. and Rochdale Insurance Co.

From 2001 to 2003, Hayes served as executive vice president and general counsel to Recovery National Corporation in Tarrytown, N.Y., a company specializing in identifying and recovering unrealized reinsurance.

He began his insurance industry career in 1982 as an attorney for the New York Insurance Exchange.