§ 26-28-127 — Allowance of certain claims after insolvency; entry of liquidation order

Wyoming § 26-28-127

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

Text

(a) No contingent and unliquidated claim shall share in a
distribution of an insurer's assets if that insurer is
adjudicated to be insolvent by an order made pursuant to this
chapter, except that the claim shall be considered, if properly
presented, and may be allowed to share if:
(i) The claim is absolute against the insurer on or
before the last day for filing claims against the insurer's
assets; or
(ii) There is a surplus and the liquidation is
thereafter conducted upon the basis that the insurer is solvent.
(b) If an insurer is adjudicated to be insolvent, any
person who has a cause of action against an insured of that
insurer, under a liability insurance policy issued by the
insurer, may file a claim in the liquidation proceeding,
regardless of the fact that the claim is contingent, and the
claim may be allowed if:
(i) It may be reasonably inferred from the proof
presented upon the claim that the person would be able to obtain
a judgment upon the cause of action against the insured;
(ii) The person furnishes suitable proof, unless the
court for good cause shown otherwise directs, that no further
valid claim against the insurer arising out of his cause of
action other than those already presented can be made; and
(iii) The insurer's total liability to all claimants
arising out of the same act of its insured is no greater than
its maximum liability would be were it not in liquidation.
(c) No judgment against an insured taken after the date of
entry of the liquidation order shall be considered in the
liquidation proceedings as evidence of liability, or of the
amount of damages. No judgment against an insured taken by
default or by collusion prior to the entry of the liquidation
order shall be considered as conclusive evidence in the
liquidation proceedings, either of the liability of the insured
to the person upon the cause of action or of the amount of
damages to which the person is entitled.
(d) No claim of any secured claimant shall be allowed at a
sum greater than the difference between the value of the claim
without security and the value of the security itself as of the
date of the entry of the order of liquidation or any other date
the court sets for determining rights and liabilities as
provided in W.S. 26-28-123 unless the claimant surrenders his
security to the commissioner, in which case the claim shall be
allowed in the full amount for which it is valued.