§ 27-14.3-38 - Domiciliary liquidator's proposal to distribute assets.
SECTION 27-14.3-38
§ 27-14.3-38 Domiciliary liquidator'sproposal to distribute assets. – (a) Within one hundred twenty (120) days of a final determination of insolvencyof an insurer by a court of competent jurisdiction of this state, theliquidator shall make application to the court for approval of a proposal todisburse assets out of marshaled assets as those assets become available, to aguaranty association or foreign guaranty association having obligations becauseof the insolvency. If the liquidator determines that there are insufficientassets to disburse, the application required by this section shall beconsidered satisfied by a filing by the liquidator stating the reasons for thisdetermination.
(b) The proposal shall at least include provisions for:
(1) Reserving amounts for the payment of the expenses ofadministration and the payment of claims of secured creditors, to the extent ofthe value of the security held, and claims falling within the prioritiesestablished in § 27-14.3-46, Classes 1 and 2;
(2) Disbursement of the assets marshaled to date andsubsequent disbursement of assets as they become available;
(3) Equitable allocation of disbursements to each of theguaranty associations and foreign guaranty associations entitled todisbursements;
(4) The securing by the liquidator from each of theassociations entitled to disbursements pursuant to this section of an agreementto return to the liquidator any assets, together with income earned on assetspreviously disbursed, as may be required to pay the claims of secured creditorsand claims falling within the priorities established in § 27-14.3-46 inaccordance with those priorities. No bond shall be required of the guarantyassociation; and
(5) A full report to be made by each guaranty association tothe liquidator accounting for all assets disbursed in this manner to theguaranty association, all disbursements made from them, any interest earned bythe association on the assets, and any other matter as the court may direct.
(c) The liquidator's proposal shall provide for disbursementsto the guaranty associations in amounts estimated at least equal to the claimpayments made or to be made by them for which the guaranty associations couldassert a claim against the liquidator, and shall provide that if the assetsavailable for disbursement do not equal or exceed the amount of the claimpayments made or to be made by the guaranty associations then disbursementsshall be in the amount of available assets.
(d) The liquidator's proposal shall, with respect to aninsolvent insurer writing life or health insurance or annuities, provide forthe disbursements of assets to any guaranty association or any foreign guarantyassociation covering life or health insurance or annuities or to any otherentity or organization reinsuring, assuming, or guaranteeing policies orcontracts of insurance under the acts creating the associations.
(e) Notice of the application shall be given to the guarantyassociation in and to the commissioners of insurance of each of the states. Anynotice shall be deemed to have been given when deposited in the United Statescertified mail, first class postage prepaid, at least thirty (30) days prior tosubmission of the application to the court. Action on the application may betaken by the court provided this required notice has been given and providedthat the liquidator's proposal complies with subdivisions (b)(1) and (b)(2) ofthis section.