§ 26-42-113 — (c) For the purpose of carrying out its obligations under this act, the association is deemed to be a creditor of the impaired or insolvent insurer to the extent of assets attributable to covered policies or contracts reduced by any amounts to which the association is entitled as assignee or subrogee pursuant to W.S. 26-42-106(q). Assets of the impaired or insolvent insurer attributable to covered policies or contracts shall be used to continue all covered policies or contracts and pay all contractual obligations of the impaired or insolvent insurer as required by this act. As used in this subsection, "assets attributable to covered policies or contracts" means that proportion of the assets which the reserves that should have been established for such policies or contracts bear to the reserves that should have been established for all policies or contracts of insurance or health benefits plans written by the impaired or insolvent insurer

Wyoming § 26-42-113

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 42: WYOMING LIFE AND HEALTH INSURANCE

Text

(d) Prior to the termination of any liquidation,
rehabilitation or conservation proceeding the court may consider
the contributions of the respective parties including the
association, the shareholders, contract owners, certificate
holders, enrollees and policy owners of the insolvent insurer,
and any other party with a bona fide interest, in making an
equitable distribution of the ownership rights of the insolvent
insurer. In such a determination consideration shall be given to
the welfare of the owners, contract owners, certificate holders
and enrollees of the continuing or successor insurer. No
distribution to stockholders, if any, of an impaired or
insolvent insurer shall be made until and unless the total
amount of valid claims and interest on the claims of the
association for funds expended in carrying out its powers and
duties under W.S. 26-42-106 with respect to the member insurer
have been fully recovered by the association.
(e) If an order for liquidation or rehabilitation of a
member insurer domiciled in this state is entered, the receiver
appointed under the order shall have a right to recover on
behalf of the member insurer from any affiliate that controlled
it, the amount of distributions other than stock dividends paid
by the member insurer on its capital stock, made at any time
during the five (5) years preceding the petition for liquidation
or rehabilitation subject to the limitations of subsections (f),
(g) and (h) of this section.
(f) No distribution pursuant to subsection (e) of this
section is recoverable if the member insurer shows that when
paid the distribution was lawful and reasonable and that the
member insurer did not know and could not reasonably have known
the distribution might adversely affect the ability of the
member insurer to fulfill its contractual obligations.
(g) Any person who was an affiliate that controlled the
member insurer at the time the distributions were paid is liable
up to the amount of distributions he received. Any person who
was an affiliate that controlled the member insurer at the time
the distributions were declared is liable up to the amount of
distributions he would have received if they had been paid
immediately. If two (2) or more persons are liable with respect
to the same distributions they are jointly and severally liable.
(h) The maximum amount recoverable under subsections (e)
through (g) of this section is the amount needed in excess of
all other available assets of the insolvent insurer to pay the
contractual obligations of the insolvent insurer.
(j) If any person liable under subsection (g) of this
section is insolvent, all its affiliates that controlled it at
the time the distribution was paid are jointly and severally
liable for any resulting deficiency in the amount recovered from
the insolvent affiliate.
(k) As a creditor of the impaired or insolvent insurer as
established in subsection (c) of this section, the association
and other similar associations shall be entitled to receive a
disbursement of assets out of the marshaled assets, from time to
time as the assets become available to reimburse it, as a credit
against contractual obligations under this act. If the
liquidator has not, within one hundred twenty (120) days of a
final determination of insolvency of a member insurer by the
receivership court, made an application to the court for the
approval of a proposal to disburse assets out of marshaled
assets to guaranty associations having obligations because of
the insolvency, then the association shall be entitled to make
application to the receivership court for approval of its own
proposal to disburse these assets.