Sec. 38a-947. (Formerly Sec. 38-465). Unclaimed and withheld funds.
Sec. 38a-947. (Formerly Sec. 38-465). Unclaimed and withheld funds. (a) All
unclaimed funds subject to distribution remaining in the liquidator's hands when the
liquidator is ready to apply to the court for discharge, including the amount distributable
to any creditor, shareholder, member, or other person who is unknown or cannot be
found, shall be deposited with the State Treasurer, and shall be paid without interest
except in accordance with section 38a-944 to the person entitled thereto or that person's
legal representative upon proof satisfactory to the State Treasurer of the person's right
thereto. Any amount on deposit not claimed within six years from the discharge of the
liquidator shall be deemed to have been abandoned and shall be escheated without formal
escheat proceedings and be deposited in the General Fund. Alternatively, the liquidator
may elect to apply to the court for authority to hold the unclaimed funds subject to
distribution for a period of two years. Thereafter, any unclaimed funds may be distributed
to approved claimants who have previously received a distribution, if it is economically
feasible for the liquidator to make the distribution, or the liquidator may apply to the
court for permission for the funds to be held by the State Treasurer in an account on
behalf of the commissioner in the commissioner's capacity as receiver for the purpose
and use of defraying the costs and expenses of administration of other insolvent insurers
for which there are insufficient assets to fund the costs and expenses of administration.
(b) All funds withheld pursuant to section 38a-939 and not distributed shall upon
discharge of the liquidator be deposited with the State Treasurer and paid by him in
accordance with section 38a-944. Any sums remaining which pursuant to section 38a-944 would revert to the undistributed assets of the insurer shall be transferred to the
State Treasurer and become the property of the state under subsection (a), unless the
commissioner in his discretion petitions the court to reopen the liquidation pursuant to
section 38a-949.
(P.A. 79-382, S. 45; P.A. 98-214, S. 25; P.A. 01-139, S. 6.)
History: Sec. 38-465 transferred to Sec. 38a-947 in 1991; P.A. 98-214 amended Subsec. (a) to make technical changes,
to allow the liquidator to apply to the court for authority to hold, or have the State Treasurer hold, unclaimed funds, and
to add provisions re distributions; P.A. 01-139 amended Subsec. (a) to add "Alternatively" re the liquidator's election to
apply to court to hold unclaimed funds, and made technical changes for the purpose of gender neutrality.