507C.34 - DOMICILIARY LIQUIDATOR'S PROPOSAL TO DISTRIBUTE ASSETS.
507C.34 DOMICILIARY LIQUIDATOR'S PROPOSAL TO DISTRIBUTE ASSETS. 1. Within one hundred twenty days of a final determination of insolvency under this chapter as assets become available, the liquidator shall make application to the court for approval of a proposal to disburse assets out of marshaled assets to a guaranty association or foreign guaranty association having obligations because of the insolvency. An application and disbursement of assets shall be made from time to time as assets become available. If the liquidator determines that there are insufficient assets to disburse, the application required by this section shall be considered satisfied by a filing by the liquidator stating the reasons for this determination. 2. The proposal shall at least include provisions for all of the following: a. Reserving amounts for the payment of all the following: (1) Expenses of administration. (2) To the extent of the value of the security held, the payment of claims of secured creditors. (3) Claims falling within the priorities established in section 507C.42, subsection 1. b. Disbursement of the assets marshaled to date and subsequent disbursement of assets as they become available. c. Equitable allocation of disbursements to each of the guaranty associations and foreign guaranty associations entitled to disbursements. d. The securing by the liquidator from each of the associations entitled to disbursements of an agreement to return to the liquidator the assets, together with income earned on assets previously disbursed, as may be required to pay claims of secured creditors and claims falling within the priorities established in section 507C.42 in accordance with the priorities. A bond shall not be required of an association. e. A full report to be made by each association to the liquidator accounting for assets so disbursed to the association, all disbursements made from the assets, interest earned by the association on the assets and any other matter as the court may direct. 3. The liquidator's proposal shall provide for disbursements to the associations in amounts estimated at least equal to the claim payments made or to be made for which the associations could assert a claim against the liquidator. The proposal shall provide that if the assets available for disbursement do not equal or exceed the amount of the claim payments made or to be made by the association then disbursements shall be in the amount of available assets. 4. With respect to an insolvent insurer writing life or health insurance or annuities, the liquidator's proposal shall provide for disbursements of assets to a guaranty association or a foreign guaranty association covering life or health insurance or annuities or to any other entity or organization reinsuring, assuming, or guaranteeing policies or contracts of insurance under the acts creating the associations. 5. Notice of the application shall be given to the association in and to the commissioners of insurance of each of the states. Notice is given when deposited in the United States certified mails, first class postage prepaid, at least thirty days prior to submission of the application to the court. Action on the application may be taken by the court provided the required notice has been given and that the liquidator's proposal complies with subsection 2, paragraphs "a" and "b".
Section History: Recent Form 84 Acts, ch 1175, § 34; 92 Acts, ch 1117, § 27; 97 Acts, ch 186, §3 Referred to in § 507C.25