§ 27-14.3-38. Domiciliary liquidator's proposal to distribute assets.
(a) Within one hundred twenty (120) days of a final determination of insolvency of an
insurer by a court of competent jurisdiction of this state, the liquidator shall make
application to the court for approval of a proposal to disburse assets out of marshaled
assets 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 a filing by the liquidator stating the reasons for
this determination.
(b) The proposal shall at least include provisions for:
(1) Reserving amounts for the payment of the 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 § 27-14.3-46, Classes 1 and 2;
(2) Disbursement of the assets marshaled 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
pursuant to this section of an agreement to return to the liquidator any assets, together
with income earned on assets previously disbursed, as may be required to pay the claims
of secured creditors and claims falling within the priorities established in § 27-14.3-46 in accordance with those priorities. No bond shall be required of the guaranty association;
and
(5) A full report to be made by each guaranty association to the liquidator accounting
for all assets disbursed in this manner to the guaranty association, all disbursements
made from them, any interest earned by the association on the assets, and any other
matter as the court may direct.
(c) The liquidator's proposal shall provide for disbursements to the guaranty associations
in amounts estimated at least equal to the claim payments made or to be made by them
for which the guaranty associations could assert a claim against the liquidator, and
shall provide that if the assets available for disbursement do not equal or exceed
the amount of the claim payments made or to be made by the guaranty associations then
disbursements shall be in the amount of available assets.
(d) The liquidator's proposal shall, with respect to an insolvent insurer writing life
or health insurance or annuities, provide for the 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 the associations.
(e) Notice of the application shall be given to the guaranty association in and to the
commissioners of insurance of each of the states. Any notice shall be deemed to have
been given when deposited in the United States certified mail, first class postage
prepaid, at least thirty (30) days prior to submission of the application to the court.
Action on the application may be taken by the court provided this required notice
has been given and provided that the liquidator's proposal complies with subsections
(b)(1) and (b)(2) of this section.