§ 10-3-557 — Interstate priorities

(1) In a liquidation proceeding in this state
involving one or more reciprocal states, the order of distribution of the domiciliary
state shall control as to all claims of residents of this and reciprocal states. All
claims of residents of reciprocal states shall be given equal priority of payment
from general assets regardless of where such assets are located.

(2) The owners of special deposit claims against an insurer for which a
liquidator is appointed in this or any other state shall be given priority against the
special deposits in accordance with the statutes governing the creation and
maintenance of the deposits. If there is a deficiency in any deposit, so that the
claims secured by it are not fully discharged from it, the claimants may share in the
general assets, but the sharing shall be deferred until general creditors, as well as
all claimants against other special deposits who have received smaller percentages
from their respective special deposits, have been paid percentages of their claims
equal to the percentage paid from the special deposit.

(3) The owner of a secured claim against an insurer for which a liquidator has
been appointed in this or any other state may surrender the security and file the
claim as a general creditor. Alternatively, the claim may be discharged by resort to
the security in accordance with section 10-3-540, in which case the deficiency, if
any, shall be treated as a claim against the general assets of the insurer on the
same basis as claims of unsecured creditors.

Legislative History

Source: L. 92: Entire part R&RE, p. 1484, � 14, effective July 1.