[§432:1-409]  Rehabilitation, liquidation,
or conservation of mutual benefit societies.  (a)  Any rehabilitation,
liquidation, or conservation of a mutual benefit society shall be deemed to be
the rehabilitation, liquidation, or conservation of an insurance company and
shall be conducted under the supervision of the commissioner pursuant to the
law governing the rehabilitation, liquidation, or conservation of insurance
companies.  The commissioner may apply for an order directing the commissioner
to rehabilitate, liquidate, or conserve a mutual benefit society upon any one
or more grounds set out in article 15 of chapter 431, or, when in the
commissioner's opinion, the continued operation of the society would be
hazardous either to the members or to the general public.  Members shall have
the same priority in the event of liquidation or rehabilitation as the law
provides to policyholders of an insurer.



(b)  For purposes of determining the priority
of distribution of general assets, claims of members and members' beneficiaries
shall have the same priority as established by article 15 of chapter 431 for
policyholders and beneficiaries of insureds of insurance companies.  If a
member is liable to any provider for services provided pursuant to and covered
by the health care plan, that liability shall have the status of a member claim
for distribution of general assets.  Any provider who is obligated by statute
or agreement to hold members harmless from liability for services provided
pursuant to and covered by a health care plan shall have a priority of
distribution of the general assets immediately following that of members and
members' beneficiaries as described in this subsection, and immediately
preceding the priority of distribution described in article 15 of chapter 431.
[L 1997, c 367, pt of §1]