§ 26.1-06.1-33 — Domiciliary liquidator's proposal to distribute assets

North Dakota § 26.1-06.1-33

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-06.1: Insurance Company Rehabilitation and Liquidation

Text

1. Within one hundred twenty days of a final determination of insolvency of an insurer by
the district court, the liquidator shall make application to the court for approval of a
proposal to disburse assets out of marshalled assets, from time to time as the 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 must be
considered satisfied by a filing by the liquidator stating the reasons for this
determination.
2. The proposal to disburse assets referred to in subsection 1 must at least include
provisions for:
a. 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 the payment of claims falling within the priorities established in section
26.1-06.1-41, classes one and two;
b. Disbursement of the assets marshalled to date and subsequent disbursement of
assets as they become available;
c. Equitable allocation of disbursements to each of the guaranty associations and
foreign guaranty associations entitled thereto;
d. The securing by the liquidator from each of the associations entitled to
disbursements pursuant to this section of an agreement to return to the liquidator
such 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 26.1-06.1-41 in accordance with such priorities.
No bond may be required of any such association; and
e. 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 such assets, and any other matter as the
court may direct.
3. The liquidator's proposal shall provide for disbursements to the associations in
amounts estimated at least equal to the claim payments made or to be made thereby
for which such associations could assert a claim against the liquidator, and shall
further provide that if the assets available for disbursement from time to time do not
equal or exceed the amount of such claim payments made or to be made by the
association, then disbursements must be in the amount of available assets.
4. The liquidator's proposal shall, with respect to an insolvent insurer writing life or health
insurance or annuities, 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 acts creating such associations.
5. Notice of such application must be given to the association in and to the
commissioners of insurance of each of the states. Any such notice must be deemed to
have been given when deposited in the United States certified mail, first-class postage
prepaid, at least thirty days prior to submission of the application to the court. Action
on the application may be taken by the court provided the above-required notice has
been given and provided further that the liquidator's proposal complies with
subdivisions a and b of subsection 2.