§ 26-28-128 — Order of insolvency; time to file claims after insolvency order; payment of claims; procedure

Wyoming § 26-28-128

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 28: REHABILITATION AND LIQUIDATION

Text

(a) If upon the entry of a liquidation order under this
chapter or at any time thereafter during liquidation proceedings
the insurer is not clearly solvent, the court, upon hearing
after notice it deems proper, shall enter an order adjudging the
insurer to be insolvent.
(b) After the entry of the order of insolvency, regardless
of any prior notice given to creditors, the commissioner shall
notify all persons who may have claims against the insurer to
file the claims with him, at a place and within the time
specified in the notice, or that the claims are forever barred.
The time specified in the notice shall be as fixed by the court
for filing of claims but not less than six (6) months after the
entry of the insolvency order. The notice shall be given in a
manner and for a reasonable period of time as the court orders.
(c) Any time after the last day fixed for the filing of
proofs of claims in the liquidation of a domestic company, the
court, upon the commissioner's application, may authorize him to
declare out of the funds remaining in his hands, one (1) or more
dividends upon all claims allowed in accordance with the
priorities established in W.S. 26-28-125.
(d) If there has been no adjudication of insolvency, the
commissioner shall pay all allowed claims in full in accordance
with the priorities set forth in W.S. 26-28-125. The
commissioner is not chargeable for any assets distributed to any
claimant who fails to file a proper proof of claim before the
distribution is made.
(e) If after an insolvency adjudication, a surplus is
found to exist after the payment in full of all allowed claims
falling within the priorities set forth in W.S. 26-28-125(a)(i)
through (iv) and which were filed prior to the last date fixed
for the filing thereof, and after the setting aside of a reserve
for all additional costs and expenses of the proceeding, the
court shall set a new date for the filing of claims. After the
expiration of the new date, all allowed claims filed on or
before the new date together with all previously allowed claims
falling within the priorities set forth in W.S. 26-28-125(a)(v)
and (vi) shall be paid in accordance with the priorities set
forth in W.S. 26-28-125.
(f) The commissioner may deposit to his credit any
dividends which he holds and remain unclaimed or unpaid for six
(6) months after the final distribution order. The dividends
shall be held in trust for the person entitled thereto, but that
person is not entitled to any interest on the deposit. All such
deposits are entitled to priority of payment in case of the
depository's insolvency or voluntary or involuntary liquidation
on an equal basis with any other priority given by the banking
law. Those funds together with interest, if any, paid or
credited thereon, remaining and unclaimed in the commissioner's
hands in trust after two (2) years are presumed abandoned, shall
be reported and delivered to the state treasurer and are subject
to W.S. 9-5-203.