§ 31A-27a-703 — Partial and final distributions of assets.

(1) (1)(a) With the approval of the receivership court, a liquidator may declare and pay:
(1)(a)(i) one or more partial distributions on claims as those claims are allowed; and
(1)(a)(ii) a final distribution.
(1)(b) All claims allowed within a priority class shall be paid at substantially the same percentage.
(1)(c) A distribution under this section to a guaranty association is not an advance under Section 31A-27a-704.
(2) In determining the percentage of distributions to be paid on a claim, the liquidator may consider:

(2)(a) the estimated value of the insurer's property, including estimated reinsurance recoverables in connection with the insurer's estimated liabilities for:
(2)(a)(i) unpaid losses and loss expenses; and
(2)(a)(ii) incurred but not reported losses and loss expenses; and
(2)(b) the estimated value of the insurer's liabilities, including estimated liabilities for:
(2)(b)(i) unpaid losses and loss expenses; and
(2)(b)(ii) incurred but not reported losses and loss expenses.
(3) Distribution of property in kind may be made at valuations set by agreement:

(3)(a) between the liquidator and the creditor; and
(3)(b) as approved by the receivership court.
(4) (4)(a) Notwithstanding Subsection (1) and Part 6, Claims, the liquidator may pay benefits under a workers' compensation policy after the day on which the liquidation order is entered if:
(4)(a)(i) there is an acceptance of liability by the insurer, and no bona fide dispute exists;
(4)(a)(ii) payment is commenced before the entry of the liquidation order; and
(4)(a)(iii) future or past indemnity or medical payments are due.
(4)(b) A claim payment under this Subsection (4) may continue until the applicable guaranty association:
(4)(b)(i) assumes responsibility for the claim payments; or
(4)(b)(ii) determines the claim is not a covered claim under its guaranty association law.
(4)(c) A claim payment or related expense made under this Subsection (4) may be treated as early access distribution under Section 31A-27a-704 in accordance with an agreement with the guaranty association responsible for the payment.

Legislative History

Enacted by Chapter 309, 2007 General Session