§ 58-30-220. Priority of distribution.
§ 58‑30‑220. Priority of distribution.
The priority of distributionof claims from the insurer's estate shall be in accordance with the order inwhich each class of claims is set forth in this section. Every claim in eachclass shall be paid in full or adequate funds shall be retained for paymentbefore the members of the next class receive any payment. No subcategoriesshall be established within the categories in a class. The order ofdistribution of claims shall be:
(1) The receiver'sexpenses for the administration and conservation of assets of the insurer.
(2) Claims or portionsof claims for benefits under policies and for losses incurred, including claimsof third parties under liability policies; claims of HMO enrollees and HMOenrollees' beneficiaries; claims for unearned premiums; claims for funds orconsideration held under funding agreements, as defined in G.S. 58‑7‑16;claims under life insurance and annuity policies, whether for death proceeds,annuity proceeds, or investment values; and claims of domestic and foreignguaranty associations, including claims for the reasonable administrativeexpenses of domestic and foreign guaranty associations; but excluding claims ofinsurance pools, underwriting associations, or those arising out of reinsuranceagreements, claims of other insurers for subrogation, and claims of insurersfor payments and settlements under uninsured and underinsured motoristcoverages.
(2a) For HMOs, claims ofproviders and participating providers, as defined in G.S. 58‑67‑5(h)and G.S. 58‑67‑5(1)[(l)], who are obligated by statute, agreement,or court order to hold enrollees harmless from liability for services providedand covered by an HMO.
(3) Claims of thefederal or any state or local government or taxing authority, including claimsfor taxes.
(4) Compensationactually owing to employees other than officers of the insurer for servicesrendered within three months before the commencement of a delinquencyproceeding against the insurer under this Article, but not exceeding onethousand dollars ($1,000) for each employee. In the discretion of theCommissioner, this compensation may be paid as soon as practicable after theproceeding has been commenced. This priority is in lieu of any other similarpriority that may be authorized by law as to wages or compensation of thoseemployees.
(5) Claims of generalcreditors, including claims of insurance pools, underwriting associations, orthose arising out of reinsurance agreements; claims of other insurers forsubrogation; and claims of insurers for payments and settlements underuninsured and underinsured motorist coverages. (1989, c. 452, s. 1; 1993(Reg. Sess., 1994), c. 600, s. 2; 1995, c. 517, s. 14; 1998‑211, s. 4.)