§ 58-30-180. Domiciliary liquidator's proposal to distribute assets.
§ 58‑30‑180. Domiciliary liquidator's proposal to distribute assets.
(a) Within one yearafter a final determination of insolvency of an insurer by the Court, theliquidator shall make application to the Court for approval of a proposal todisburse assets out of marshalled assets, from time to time as such assetsbecome available, to a domestic or foreign guaranty association havingobligations because of such insolvency. If the liquidator determines that thereare insufficient assets to disburse, the application required by this sectionshall be considered satisfied by a filing by the liquidator stating the reasonsfor this determination.
(b) Such proposal shallat least include provisions for:
(1) Reserving amountsfor the payment of expenses of administration and the payment of claims ofsecured creditors, to the extent of the value of the security held, and claimsfalling within the priorities established in G.S. 58‑30‑220(1) and(4);
(2) Disbursement of theassets marshalled to date and subsequent disbursement of assets as they becomeavailable;
(3) Equitable allocationof disbursements to each of the domestic and foreign guaranty associationsentitled thereto;
(4) The securing by theliquidator from each of the associations entitled to disbursements pursuant tothis section of an agreement to return to the liquidator such assets, togetherwith income earned on assets previously disbursed, as may be required to payclaims of secured creditors and claims falling within the prioritiesestablished in G.S. 58‑30‑220 in accordance with such priorities.No bond shall be required of any such association; and
(5) A full report to bemade by each association to the liquidator accounting for all assets sodisbursed to the association, all disbursements made therefrom, any interestearned by the association on such assets and any other matter as the Courtdirects.
(c) The liquidator'sproposal shall provide for disbursements to the associations in amountsestimated at least equal to the claim payments made or to be made thereby forwhich such associations could assert a claim against the liquidator; and shallfurther provide that if the assets available for disbursement from time to timedo not equal or exceed the amount of such claim payments made or to be made bythe association then disbursements shall be in the amount of available assets.
(d) The liquidator'sproposal shall, with respect to an insolvent insurer writing life or healthinsurance or annuities, provide for disbursements of assets to any domestic orforeign guaranty association covering life or health insurance or annuities orto any other entity reinsuring, assuming, or guaranteeing policies or contractsof insurance under the acts creating such associations.
(e) Notice of suchapplication shall be given to the association in and to the insuranceregulators of each of the states. Any such notice shall be deemed to have beengiven when deposited in United States certified mail, first class postageprepaid, at least 30 days prior to submission of such application to the Court.Action on the application may be taken by the Court provided the above requirednotice has been given and provided further that the liquidator's proposalcomplies with subdivisions (b)(1) and (b)(2) of this section. (1989, c. 452, s. 1; 1995, c.517, s. 13; 2006‑105, s. 1.5.)