[§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 bethe rehabilitation, liquidation, or conservation of an insurance company andshall be conducted under the supervision of the commissioner pursuant to thelaw governing the rehabilitation, liquidation, or conservation of insurancecompanies.  The commissioner may apply for an order directing the commissionerto rehabilitate, liquidate, or conserve a mutual benefit society upon any oneor more grounds set out in article 15 of chapter 431, or, when in thecommissioner's opinion, the continued operation of the society would behazardous either to the members or to the general public.  Members shall havethe same priority in the event of liquidation or rehabilitation as the lawprovides to policyholders of an insurer.

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