§ 58-30-200. Special provisions for third party claims.
§ 58‑30‑200. Special provisions for third party claims.
(a) Whenever any thirdparty asserts a cause of action against an insured of an insurer inliquidation, the third party may file a claim with the liquidator.
(b) Whether or not thethird party files a claim, the insured may file a claim on his own behalf inthe liquidation. If the insured fails to file a claim by the date for filingclaims specified in the order of liquidation or within 60 days after mailing ofthe notice required by G.S. 58‑30‑125, whichever is later, he is anunexcused late filer.
(c) The liquidatorshall make his recommendations to the Court under G.S. 58‑30‑225for the allowance of an insured's claim under subsection (b) of this sectionafter consideration of the probable outcome of any pending action against theinsured on which the claim is based, the probable damages recoverable in theaction, and the probable costs and expenses of defense. After allowance by theCourt, the liquidator shall withhold any dividends payable on the claim,pending the outcome of litigation and negotiation with the insured. Whenever itseems appropriate, he shall reconsider the claim on the basis of additionalinformation and amend his recommendations to the Court. The insured shall beafforded the same notice and opportunity to be heard on all changes in therecommendation as in its initial determination. The Court may amend itsallowance as it thinks appropriate. As claims against the insured are settledor barred, the insured shall be paid from the amount withheld the samepercentage dividend as was paid on other claims of like property, based on thelesser of (i) the amount actually recovered from the insured by action or paidby agreement plus the reasonable costs and expense of defense, or (ii) the amountallowed on the claims by the Court. After all claims are settled or barred, anysum remaining from the amount withheld shall revert to the undistributed assetsof the insurer. Delay in final payment under this subsection shall not be areason for unreasonable delay of final distribution and discharge of theliquidator.
(d) No claim may bepresented under this section if it is or may be covered by any domestic orforeign guaranty association. (1989, c. 452, s. 1; 2003‑221, s. 14.)