§ 27-9-4-9 — Proceedings involving reciprocal states, orders of distribution, and priority of claims; special deposit claims; secured claims

(a) In a liquidation proceeding in Indiana
involving one (1) 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 those assets are located.
(b) 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, and also 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.
(c) The owner of a secured claim against an insurer for which a
liquidator has been appointed in this or any other state may surrender
his security and file his claim as a general creditor, or the claim may be
discharged by resort to the security in accordance with IC 27-9-3-39,
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.
As added by Acts 1979, P.L.255, SEC.1.