A conservator is a public authority appointee given control to stabilize an insurer that is in financial distress.
The role is distinct from liquidation: the goal is rehabilitation and continuity where possible, while protecting policyholder interests and market confidence.
Regulatory function
Conservation actions usually include claims moratorium review, re-pricing authority, and management oversight until solvency improves.
Practical significance
From a policyholder perspective, conservatorship usually preserves coverage continuity even while the company undergoes operational restrictions.