§ 7433 — Proof and allowance of claims

New York § 7433

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 74: Rehabilitation, Liquidation, Conservation and Dissolution of Insurers

Text

§ 7433. Proof and allowance of claims. (a) (1) A proof of claim shall\nconsist of a written statement subscribed and affirmed by the claimant\nas true under the penalties of perjury, setting forth the claim, the\nconsideration therefor, any securities held therefor, any payments made\nthereon, and that the sum claimed is justly owing from the insurer to\nthe claimant.\n (2) If a claim is founded upon an instrument in writing, such\ninstrument, unless lost or destroyed, shall be filed with the proof of\nclaim. After the filing of such instrument the superintendent may in\nhis discretion permit the claimant to retain such instrument until final\ndisposition of the claim. If such instrument is lost or destroyed, a\nstatement of such fact and of the circumstances of such loss or\ndestruction shall be filed under oath with the claim.\n (b) (1) Upon the liquidation of any domestic insurer or United States\nbranch which has issued policies insuring the lives of persons, the\nsuperintendent shall, within thirty days after the last day set for\nfiling claims, make a list of the persons who have not filed proofs of\nclaim with him, to whom it appears to his entire satisfaction, from the\nrecords of the company, that there are owing amounts on such policies\nand he shall set opposite the name of each person such amount so owing\nto such person. Each person whose name shall appear upon such list shall\nbe deemed to have duly filed, prior to the last day set for the filing\nof claims, a proof of claim for the amount set opposite his name.\n (2) Upon the liquidation of any domestic insurer or United States\nbranch which has issued property/casualty policies, the superintendent\nshall, within thirty days after the last day set for filing claims, make\na list of all persons whose name appears on the books and records of the\ncompany as policyholders or claimants. Each person whose name appears\nupon such list shall be deemed to have duly filed a proof of claim prior\nto the last day set for the filing of claims.\n (c) No contingent claim shall share in a distribution of assets of an\ninsurer adjudicated to be insolvent by an order made pursuant to section\nseven thousand four hundred thirty-two of this article except that any\nsuch claim shall be considered if properly presented and may be allowed\nto share if:\n (1) it becomes absolute against the insurer on or before the last day\nfixed for filing of proofs of claim, or\n (2) there is a surplus and the liquidation is thereafter conducted\nupon the basis that such insurer is solvent.\n (d) (1) Where a liquidation, rehabilitation or conservation order has\nbeen entered in a proceeding against an insurer under this article, any\nperson who has a cause of action against an insured of such insurer\nunder a liability insurance policy issued by such insurer, shall have\nthe right to file a claim in the proceeding, even though the claim is\ncontingent.\n (2) The claim may be allowed:\n (A) if it may be reasonably inferred from the proof presented that\nsuch person would be able to obtain a judgment upon such cause of action\nagainst such insured;\n (B) if such person shall furnish suitable proof, unless the court for\ngood cause shown shall otherwise direct, that no further valid claims\nagainst such insurer arising out of his cause of action other than those\nalready presented can be made; and\n (C) if the total liability of such insurer to all claimants arising\nout of the same act of its insured shall be no greater than its total\nliability would be were it not in liquidation, rehabilitation or\nconservation.\n (3) No judgment against such an insured taken after the date of the\nentry of the liquidation, rehabilitation or conservation order shall be\nconsidered in the proceedings as evidence of liability or of the amount\nof damages. No judgment against an insured taken by default, inquest or\ncollusion prior to the entry of a liquidation order shall be considered\nas conclusive evidence in the proceeding either of the liability of such\ninsured to such person upon such cause of action or of the amount of\ndamages to which such person is therein entitled.\n (e) Debts owing to a state, county, district or municipality, or any\nsubdivision thereof, as a penalty or forfeiture, shall not be allowed\nexcept for the amount of the pecuniary loss sustained by the act,\ntransaction or proceeding out of which the penalty or forfeiture arose,\nwith reasonable and actual costs occasioned thereby, and such interest\nas may have accrued thereon according to law.\n (f) No claim of any secured claimant shall be allowed at a sum greater\nthan the difference between the value of the claim without security and\nthe value of the security itself as of the date of entry of the order of\nliquidation or such other date set by the court for fixation of rights\nand liabilities as provided in section seven thousand four hundred five\nof this article, unless the claimant shall surrender his security to the\nsuperintendent in which event the claim shall be allowed in the full\namount of its value.\n