Sec. 38a-960. (Formerly Sec. 38-478). Interstate priorities.
Sec. 38a-960. (Formerly Sec. 38-478). Interstate priorities. (a) In a liquidation
proceeding in this state involving one or more reciprocal states, the order of distribution
of the domiciliary state shall control as to all claims of residents of this and reciprocal
states. All claims of residents of reciprocal states shall be given equal priority of payment
from general assets regardless of where such assets are located.
(b) The owners of special deposit claims against an insurer for which a liquidator
is appointed in this or any other state shall be given priority against the special deposits
in accordance with the statutes governing the creation and maintenance of the deposits.
If there is a deficiency in any deposit, so that the claims secured by it are not fully
discharged from it, the claimants may share in the general assets, but the sharing shall
be deferred until general creditors, and also claimants against other special deposits who
have received smaller percentages from their respective special deposits, have been paid
percentages of their claims equal to the percentage paid from the special deposit.
(c) The owner of a secured claim against an insurer for which a liquidator has been
appointed in this or any other state may surrender his security and file his claim as a
general creditor, or the claim may be discharged by resort to the security in accordance
with section 38a-943, in which case the deficiency, if any, shall be treated as a claim
against the general assets of the insurer on the same basis as claims of unsecured creditors.
(P.A. 79-382, S. 58.)
History: Sec. 38-478 transferred to Sec. 38a-960 in 1991.