§ 26.1-06.1-57 — Interstate priorities

North Dakota § 26.1-06.1-57

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

Text

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 must 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 must 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
must be deferred until general creditors, and 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 a claim as a
general creditor, or the claim may be discharged by resort to the security in
accordance with section 26.1-06.1-40, in which case the deficiency, if any, must be
treated as a claim against the general assets of the insurer on the same basis as
claims of unsecured creditors.