§ 26-28-125 — Priority of distribution of an insolvent insurer's assets

(a) The priorities of distribution of general assets from
the company's estate is as follows:
(i) The costs and expenses of the administration,
insolvency, liquidation and rehabilitation, including the claims
handling expenses of the Wyoming Insurance Guaranty Association
and of any similar organization in any other state as prescribed
in W.S. 26-31-101 through 26-31-117;
(ii) Wages actually owing to employees, other than
officers of insurers, for services rendered within three (3)
months prior to the date of commencement of a proceeding against
the insurer under this chapter, but not exceeding one thousand
dollars ($1,000.00) to each employee and secured claims,
including claims for taxes and debts due the federal or any
state or local government which are secured by liens perfected
prior to the commencement of delinquency proceedings;
(iii) Claims by policyholders, beneficiaries,
insureds and liability claims against insureds covered under
insurance policies and insurance contracts issued by the
company, as set forth in W.S. 26-28-114 through 26-28-117 and
claims of the Wyoming Insurance Guaranty Association and any
similar organization in another state as prescribed in W.S.
26-31-110;
(iv) All other claims of general creditors not
falling within any other priority under this section, including
claims for taxes and debts due the federal government or any
state or local government which are not secured claims;
(v) Claims of guarantee association certificate
holders, guarantee capital shareholders and surplus note
holders;
(vi) Proprietary claims of shareholders, members or
other owners.
(b) Upon the issuance of an order of liquidation with a
finding of insolvency against a domestic company, the
commissioner shall apply to the court requesting authority to
disburse funds to the Wyoming Insurance Guaranty Association out
of the company's marshaled assets as funds become available in
amounts equal to disbursements made by the association for
claims handling expense and covered claims obligations on the
presentation of evidence that the association made
disbursements. The commissioner shall:
(i) In the application request authority to make
disbursements to similar organizations in other states provided
the Wyoming Insurance Guaranty Association is entitled to like
payment under the laws of the similar organization's state of
domicile with respect to insolvent companies domiciled in that
state;
(ii) In determining the amounts available for
disbursements to the Wyoming Insurance Guaranty Association and
similar organizations in other states, reserve sufficient assets
for the payment of the expenses of administration;
(iii) Establish procedures for the ratable allocation
of disbursements to the Wyoming Insurance Guaranty Association
and similar organizations in other states; and
(iv) Secure from the Wyoming Insurance Guaranty
Association and each eligible similar organization in other
states as a condition to advances in reimbursement of covered
claims obligations an agreement to return to the commissioner on
demand funds previously advanced as may be required to pay
claims of secured creditors and claims falling within the
priorities established in paragraphs (a)(ii) and (iii) of this
section in accordance with such priorities.