§ 27-9-3-32 — Proposal to disburse assets

Indiana § 27-9-3-32

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 9: SUPERVISION; REHABILITATION
• Ch. 3: Formal Proceedings

Text

(a) Within one hundred twenty (120) days of
a final determination of insolvency of an insurer by the Marion County
circuit court, the liquidator shall make application to that court for
approval of a proposal to disburse assets out of marshalled assets, from
time to time as those assets become available, to a guaranty association
or foreign guaranty association having obligations because of the
insolvency. If the liquidator determines that there are insufficient assets
to disburse, the application required by this section shall be considered
satisfied by the liquidator filing a statement setting forth the reasons for
this determination.
(b) The proposal to disburse assets must include:
(1) Reserving amounts for the payment of expenses of
administration and the payment of claims of secured creditors, to
the extent of the value of the security held, and claims falling
within the priorities established in section 40 of this chapter
(Classes 1 and 2).
(2) Disbursement of the assets marshalled to date and subsequent
disbursement of assets as they become available.
(3) Equitable allocation of disbursements to each of the guaranty
associations and foreign guaranty associations entitled to
disbursements.
(4) The securing by the liquidator from each of the associations
entitled to disbursements under this section of an agreement to
return to the liquidator those assets, together with income earned
on assets previously disbursed, as may be required to pay claims
of secured creditors and claims falling within the priorities
established in section 40 of this chapter in accordance with those
priorities. A bond may not be required of any guaranty association
or foreign guaranty association.
(5) A full report to be made by each association to the liquidator
accounting for all assets so disbursed to the association, all
disbursements made therefrom, any interest earned by the
association on those assets and any other matter as the court may
direct.
(c) The liquidator's proposal must provide:
(1) for disbursements to the associations in amounts estimated at
least equal to the claim payments made or to be made by
disbursements for which those associations could assert a claim
against the liquidator; and
(2) that if the assets available for disbursement from time to time
do not equal or exceed the amount of the claim payments made or
to be made by the association then disbursements shall be in the
amount of available assets.
(d) With respect to an insolvent insurer writing life or health
insurance or annuities, the liquidator's proposal must provide for
disbursements of assets to any guaranty association or any foreign
guaranty association covering life or health insurance or annuities or to
any other entity or organization reinsuring, assuming, or guaranteeing
policies or contracts of insurance under the laws creating those
associations.
(e) Notice of application must be given to the association in and to
the commissioners of insurance of each of the states. The notice shall
be considered to have been given when deposited in the United States
certified mails, first-class postage prepaid, at least thirty (30) days
before submission of the application to the Marion County circuit
court. Action on the application may be taken by the Marion County
circuit court provided that:
(1) the required notice has been given; and
(2) the liquidator's proposal complies with subsections (b)(1) and
(b)(2).
As added by Acts 1979, P.L.255, SEC.1.