§ 27-8-8-10 — Records of board meetings; disclosure of records; association status as creditor; application of impaired or insolvent insurer's assets

(a) Records must be kept of all meetings of
the board to discuss the activities of the association in carrying out its
powers and duties under sections 5, 5.2, and 5.4 of this chapter.
Records of the association with respect to an impaired insurer or
insolvent insurer must not be disclosed except:
(1) after the termination of the liquidation, rehabilitation, or
conservation proceeding involving the impaired insurer or
insolvent insurer; or
(2) upon the order of a court with jurisdiction if the order is made
before the time described in subdivision (1).
This subsection does not limit the duty of the association to submit a
report of its activities under section 12 of this chapter.
(b) For the purpose of carrying out its obligations under this chapter,
the association is a creditor of the impaired insurer or insolvent insurer
to the extent of assets attributable to covered policies reduced by any
amounts that the association has received, from a person other than the
impaired insurer or insolvent insurer, as subrogee under section 5(m),
5(o), and 5(q) of this chapter. Assets of the impaired insurer or
insolvent insurer attributable to covered policies shall be used to
continue all covered policies and pay all contractual obligations of the
impaired insurer or insolvent insurer as required by this chapter.
"Assets attributable to covered policies", as used in this subsection, is
that proportion of the assets that the reserves that should have been
established for such policies bear to the reserves that should have been
established for all policies of insurance written by the impaired insurer
or insolvent insurer.
(c) As a creditor of an impaired insurer or insolvent insurer under
subsection (b) and consistent with IC 27-9-3-32, the association and
other similar associations are entitled to receive disbursements of
assets out of the marshaled assets, as the assets become available to
reimburse the association or another similar association, as a credit
against contractual obligations under this chapter. If the liquidator has
not, within one hundred twenty (120) days after a member insurer
becomes an insolvent insurer, made an application to the court for the
approval of a proposal to disburse assets out of marshaled assets to
guaranty associations having obligations because of the insolvency, the
association is entitled to make application to the receivership court for
approval of the association's own proposal to disburse the assets.
(d) Before the termination of a liquidation, rehabilitation, or
conservation proceeding, the court may take into consideration the
contributions of the respective parties, including the association, the
shareholders, the policy owners, and the insureds of the impaired
insurer or insolvent insurer, and any other party with a bona fide
interest, in making an equitable distribution of the ownership rights of
the impaired insurer or insolvent insurer. In making the determination,
the court shall consider the welfare of the policy owners and insureds
of the continuing or successor member insurer.
(e) A distribution to stockholders of an impaired insurer or insolvent
insurer must not be made until the total amount of valid claims of the
association, with interest, for funds expended in carrying out the
association's powers and duties under sections 5, 5.2, 5.4, and 5.5 of
this chapter with respect to the impaired insurer or insolvent insurer,
have been fully recovered by the association.
As added by Acts 1978, P.L.129, SEC.3. Amended by
P.L.193-2006, SEC.24; P.L.208-2018, SEC.22.