(a) No contingent claimshall share in a distribution of the assets of an insurer that has beenadjudicated to be insolvent by an order made pursuant to G.S. 58‑30‑105;except that such claims shall be considered, if properly presented, and may beallowed to share where:
(1) Such claim becomesabsolute against the insurer on or before the last day fixed for filing ofproofs of claim against the assets of such insurer, or
(2) There is a surplusand the liquidation is thereafter conducted upon the basis that such insurer issolvent.
(b) Where an insurerhas been so adjudicated to be insolvent, any person who has a cause of actionagainst an insured of such insurer under a liability insurance policy issued bysuch insurer, has the right to file a claim in the liquidation proceedings,regardless of the fact that such claim may be contingent, and such claim may beallowed:
(1) If it may bereasonably inferred from the proof presented upon such claim that such personwould be able to obtain a judgment upon such cause of action against suchinsured; and
(2) If such personfurnishes suitable proof, unless the Court for good cause shown otherwisedirects, that no further valid claims against such insurer arising out of hiscause of action other than those already presented can be made; and
(3) If the totalliability of such insurer to all claimants arising out of the same act of itsinsured is no greater than its total liability would be were it not inliquidation.
No judgment against such aninsured taken after the date of the entry of the liquidation order shall beconsidered in the liquidation proceedings as evidence of liability or of theamount of damages, and no judgment against an insured taken by default,inquest, or by collusion prior to the entry of the liquidation order shall beconsidered as conclusive evidence in the liquidation proceeding, either of theliability of such insured to such person upon such cause of action or of theamount of damages to which such person is therein entitled.
(c) No claim of anysecured claimant shall be allowed at a sum greater than the difference betweenthe value of the claim without security and the value of the security itself asof the date of entry of the order of liquidation or such other date set by theCourt for fixation of rights and liabilities as provided in G.S. 58‑30‑105unless the claimant surrenders his security to the Commissioner, in which eventthe claim shall be allowed in the full amount for which it is valued.
(d) Claims that are duebut for the passage of time, including any structured settlements or judgmentsinvolving periodic payments, shall be treated the same as absolute claims,except that such claims may be discounted at the legal rate of interest.
(e) Claims made underemployment contracts by directors, principal officers, or persons in factperforming similar functions or having similar powers, are limited to paymentfor services rendered prior to the issuance of any order of rehabilitation orliquidation under this Article. (1989, c. 452, s. 1.)
(a) No contingent claimshall share in a distribution of the assets of an insurer that has beenadjudicated to be insolvent by an order made pursuant to G.S. 58‑30‑105;except that such claims shall be considered, if properly presented, and may beallowed to share where:
(1) Such claim becomesabsolute against the insurer on or before the last day fixed for filing ofproofs of claim against the assets of such insurer, or
(2) There is a surplusand the liquidation is thereafter conducted upon the basis that such insurer issolvent.
(b) Where an insurerhas been so adjudicated to be insolvent, any person who has a cause of actionagainst an insured of such insurer under a liability insurance policy issued bysuch insurer, has the right to file a claim in the liquidation proceedings,regardless of the fact that such claim may be contingent, and such claim may beallowed:
(1) If it may bereasonably inferred from the proof presented upon such claim that such personwould be able to obtain a judgment upon such cause of action against suchinsured; and
(2) If such personfurnishes suitable proof, unless the Court for good cause shown otherwisedirects, that no further valid claims against such insurer arising out of hiscause of action other than those already presented can be made; and
(3) If the totalliability of such insurer to all claimants arising out of the same act of itsinsured is no greater than its total liability would be were it not inliquidation.
No judgment against such aninsured taken after the date of the entry of the liquidation order shall beconsidered in the liquidation proceedings as evidence of liability or of theamount of damages, and no judgment against an insured taken by default,inquest, or by collusion prior to the entry of the liquidation order shall beconsidered as conclusive evidence in the liquidation proceeding, either of theliability of such insured to such person upon such cause of action or of theamount of damages to which such person is therein entitled.
(c) No claim of anysecured claimant shall be allowed at a sum greater than the difference betweenthe value of the claim without security and the value of the security itself asof the date of entry of the order of liquidation or such other date set by theCourt for fixation of rights and liabilities as provided in G.S. 58‑30‑105unless the claimant surrenders his security to the Commissioner, in which eventthe claim shall be allowed in the full amount for which it is valued.
(d) Claims that are duebut for the passage of time, including any structured settlements or judgmentsinvolving periodic payments, shall be treated the same as absolute claims,except that such claims may be discounted at the legal rate of interest.
(e) Claims made underemployment contracts by directors, principal officers, or persons in factperforming similar functions or having similar powers, are limited to paymentfor services rendered prior to the issuance of any order of rehabilitation orliquidation under this Article. (1989, c. 452, s. 1.)
(a) No contingent claimshall share in a distribution of the assets of an insurer that has beenadjudicated to be insolvent by an order made pursuant to G.S. 58‑30‑105;except that such claims shall be considered, if properly presented, and may beallowed to share where:
(1) Such claim becomesabsolute against the insurer on or before the last day fixed for filing ofproofs of claim against the assets of such insurer, or
(2) There is a surplusand the liquidation is thereafter conducted upon the basis that such insurer issolvent.
(b) Where an insurerhas been so adjudicated to be insolvent, any person who has a cause of actionagainst an insured of such insurer under a liability insurance policy issued bysuch insurer, has the right to file a claim in the liquidation proceedings,regardless of the fact that such claim may be contingent, and such claim may beallowed:
(1) If it may bereasonably inferred from the proof presented upon such claim that such personwould be able to obtain a judgment upon such cause of action against suchinsured; and
(2) If such personfurnishes suitable proof, unless the Court for good cause shown otherwisedirects, that no further valid claims against such insurer arising out of hiscause of action other than those already presented can be made; and
(3) If the totalliability of such insurer to all claimants arising out of the same act of itsinsured is no greater than its total liability would be were it not inliquidation.
No judgment against such aninsured taken after the date of the entry of the liquidation order shall beconsidered in the liquidation proceedings as evidence of liability or of theamount of damages, and no judgment against an insured taken by default,inquest, or by collusion prior to the entry of the liquidation order shall beconsidered as conclusive evidence in the liquidation proceeding, either of theliability of such insured to such person upon such cause of action or of theamount of damages to which such person is therein entitled.
(c) No claim of anysecured claimant shall be allowed at a sum greater than the difference betweenthe value of the claim without security and the value of the security itself asof the date of entry of the order of liquidation or such other date set by theCourt for fixation of rights and liabilities as provided in G.S. 58‑30‑105unless the claimant surrenders his security to the Commissioner, in which eventthe claim shall be allowed in the full amount for which it is valued.
(d) Claims that are duebut for the passage of time, including any structured settlements or judgmentsinvolving periodic payments, shall be treated the same as absolute claims,except that such claims may be discounted at the legal rate of interest.
(e) Claims made underemployment contracts by directors, principal officers, or persons in factperforming similar functions or having similar powers, are limited to paymentfor services rendered prior to the issuance of any order of rehabilitation orliquidation under this Article. (1989, c. 452, s. 1.)
