A company in receivership, means, that they are bankrupt, and have been taken over by the state. All assets are frozen. Claims (death claims) can only be paid out with the consent of the conservator - the state appointed person in charge of liquidating the company.
You can cancel her policy, but there's no guarantee when, or IF, any of the cash value will be given to her. If there is a death claim, then the claim will be paid out - eventually - by the state guarantee fund, if nothing else.
If a rehab plan is approved, then eventually she *might* be able to cash out her policies. Her best course of action, IF the policy is paid in full, is to sit and wait. Either business will resume operating, in a year or two, and she'll be able to 'cash out', or the company will stop operating, and her policy will be transferred to another insurer in your state, and THEN she can 'cash out'.
This is a PRIME example of why life insurance should NOT be used as a savings/investment tool - because the money isn't YOURS, until you've actually cancelled the policy.