Distribution of assets, liquidator shall apply for,when--contents--notice provisions.
375.1205. 1. Within one year of a final order of liquidation of aninsurer by a court of competent jurisdiction of this state, the liquidatorshall make application to the court for approval of a proposal to makeearly access disbursements out of marshaled assets to a guarantyassociation or foreign guaranty association having obligations because ofsuch insolvency.
2. Such proposal shall at least include provisions for:
(1) Reserving amounts for the payment of expenses of administrationand the payment of claims of secured creditors, to the extent of the valueof the security held, and claims falling within priority class I asestablished in section 375.1218;
(2) Initial disbursement of the assets marshaled to date, which shallbe as soon as practicable and in any case not later than one hundred twentydays after the approval of the early access plan, and subsequentdisbursement of assets which shall be at least annually;
(3) The securing by the liquidator from each of the guarantyassociations or foreign guaranty associations entitled to disbursementspursuant to this section of an agreement to return to the liquidator suchassets, together with income earned on assets previously disbursed, as maybe required to pay claims of secured creditors and claims falling withinthe priorities established in sections 375.700 and 375.1218 in accordancewith such priorities. No bond or indemnity agreement shall be required ofany such association;
(4) A full report to be made by each guaranty association or foreignguaranty association to the liquidator accounting for all assets sodisbursed to the association, all disbursements made therefrom, anyinterest earned by the association on such assets and any other matter asthe court may direct; and
(5) Disbursements to guaranty associations in sums as large aspossible, subject to the limitations set forth in subdivision (1) of thissubsection and subsection 4 of this section. If the liquidator determinesthat there are insufficient assets to disburse at the time of any requireddisbursement, the liquidator shall make application to the court, withnotice to the state insurance commissioners and guaranty associationspursuant to subsection 6 of this section, for approval of an intent not todisburse, stating the reasons for such determination.
3. Subject only to the provisions of subdivision (4) of subsection 2of this section, guaranty associations shall not be charged interest onassets disbursed pursuant to this section.
4. The liquidator's proposal shall provide for disbursements to eachguaranty association of foreign guaranty associations in amounts at leastequal to the sum of claims payments and allocated lost adjustment expensesof each guaranty association, and a reasonable estimate of reserves forunpaid but known loss claims and allocated loss adjustment expensesexpected to be paid within one year by each guaranty association. Amountsused for such calculation shall be those reported to the liquidator by eachguaranty association in its most recent financial report to the liquidator.The liquidator's proposal shall further provide that if the assetsavailable for required disbursements do not equal or exceed the amount ofsuch claim payments to be made by the association, the requireddisbursements may be in the amount of available assets. Unless otherwiseprovided by the court, the reserves of the insolvent insurer, as reflectedin its records or in the financial examination leading to the finding ofinsolvency, on the date of the final order of liquidation, shall be used todetermine the initial disbursement to the guaranty associations. Theliquidator shall liquidate the assets of the insurer in an expeditiousmanner, but is not required to make forced or quick sales that would resultin obtaining less than market value for assets.
5. The liquidator's proposal shall, with respect to an insolventinsurer writing life or health insurance or annuities, provide fordisbursements of assets to any guaranty association or any foreign guarantyassociation covering life or health insurance or annuities or to any otherentity or organization reinsuring, assuming or guaranteeing policies orcontracts of insurance pursuant to the laws creating such associations.
6. Notice of each application shall be given to each guarantyassociation or foreign guaranty associations in and to the commissioners ofthe insurance departments of each of the involved states. Any such noticeshall be deemed to have been given when deposited in the United Statesmail, certified delivery, first class postage prepaid, at least thirty daysprior to submission of such application to the court. Action on theapplication may be taken by the court provided the above-required noticehas been given.
7. The liquidator shall not offset the amount to be disbursed to aguaranty association or a foreign guaranty association by the amount of anyspecial deposit or any other statutory deposit or asset of the insolventinsurer held in this state or another state unless such deposit has beenforwarded to the guaranty association.
Distribution of assets, liquidator shall apply for,when--contents--notice provisions.
375.1205. 1. Within one year of a final order of liquidation of aninsurer by a court of competent jurisdiction of this state, the liquidatorshall make application to the court for approval of a proposal to makeearly access disbursements out of marshaled assets to a guarantyassociation or foreign guaranty association having obligations because ofsuch insolvency.
2. Such proposal shall at least include provisions for:
(1) Reserving amounts for the payment of expenses of administrationand the payment of claims of secured creditors, to the extent of the valueof the security held, and claims falling within priority class I asestablished in section 375.1218;
(2) Initial disbursement of the assets marshaled to date, which shallbe as soon as practicable and in any case not later than one hundred twentydays after the approval of the early access plan, and subsequentdisbursement of assets which shall be at least annually;
(3) The securing by the liquidator from each of the guarantyassociations or foreign guaranty associations entitled to disbursementspursuant to this section of an agreement to return to the liquidator suchassets, together with income earned on assets previously disbursed, as maybe required to pay claims of secured creditors and claims falling withinthe priorities established in sections 375.700 and 375.1218 in accordancewith such priorities. No bond or indemnity agreement shall be required ofany such association;
(4) A full report to be made by each guaranty association or foreignguaranty association to the liquidator accounting for all assets sodisbursed to the association, all disbursements made therefrom, anyinterest earned by the association on such assets and any other matter asthe court may direct; and
(5) Disbursements to guaranty associations in sums as large aspossible, subject to the limitations set forth in subdivision (1) of thissubsection and subsection 4 of this section. If the liquidator determinesthat there are insufficient assets to disburse at the time of any requireddisbursement, the liquidator shall make application to the court, withnotice to the state insurance commissioners and guaranty associationspursuant to subsection 6 of this section, for approval of an intent not todisburse, stating the reasons for such determination.
3. Subject only to the provisions of subdivision (4) of subsection 2of this section, guaranty associations shall not be charged interest onassets disbursed pursuant to this section.
4. The liquidator's proposal shall provide for disbursements to eachguaranty association of foreign guaranty associations in amounts at leastequal to the sum of claims payments and allocated lost adjustment expensesof each guaranty association, and a reasonable estimate of reserves forunpaid but known loss claims and allocated loss adjustment expensesexpected to be paid within one year by each guaranty association. Amountsused for such calculation shall be those reported to the liquidator by eachguaranty association in its most recent financial report to the liquidator.The liquidator's proposal shall further provide that if the assetsavailable for required disbursements do not equal or exceed the amount ofsuch claim payments to be made by the association, the requireddisbursements may be in the amount of available assets. Unless otherwiseprovided by the court, the reserves of the insolvent insurer, as reflectedin its records or in the financial examination leading to the finding ofinsolvency, on the date of the final order of liquidation, shall be used todetermine the initial disbursement to the guaranty associations. Theliquidator shall liquidate the assets of the insurer in an expeditiousmanner, but is not required to make forced or quick sales that would resultin obtaining less than market value for assets.
5. The liquidator's proposal shall, with respect to an insolventinsurer writing life or health insurance or annuities, provide fordisbursements of assets to any guaranty association or any foreign guarantyassociation covering life or health insurance or annuities or to any otherentity or organization reinsuring, assuming or guaranteeing policies orcontracts of insurance pursuant to the laws creating such associations.
6. Notice of each application shall be given to each guarantyassociation or foreign guaranty associations in and to the commissioners ofthe insurance departments of each of the involved states. Any such noticeshall be deemed to have been given when deposited in the United Statesmail, certified delivery, first class postage prepaid, at least thirty daysprior to submission of such application to the court. Action on theapplication may be taken by the court provided the above-required noticehas been given.
7. The liquidator shall not offset the amount to be disbursed to aguaranty association or a foreign guaranty association by the amount of anyspecial deposit or any other statutory deposit or asset of the insolventinsurer held in this state or another state unless such deposit has beenforwarded to the guaranty association.
Distribution of assets, liquidator shall apply for,when--contents--notice provisions.
375.1205. 1. Within one year of a final order of liquidation of aninsurer by a court of competent jurisdiction of this state, the liquidatorshall make application to the court for approval of a proposal to makeearly access disbursements out of marshaled assets to a guarantyassociation or foreign guaranty association having obligations because ofsuch insolvency.
2. Such proposal shall at least include provisions for:
(1) Reserving amounts for the payment of expenses of administrationand the payment of claims of secured creditors, to the extent of the valueof the security held, and claims falling within priority class I asestablished in section 375.1218;
(2) Initial disbursement of the assets marshaled to date, which shallbe as soon as practicable and in any case not later than one hundred twentydays after the approval of the early access plan, and subsequentdisbursement of assets which shall be at least annually;
(3) The securing by the liquidator from each of the guarantyassociations or foreign guaranty associations entitled to disbursementspursuant to this section of an agreement to return to the liquidator suchassets, together with income earned on assets previously disbursed, as maybe required to pay claims of secured creditors and claims falling withinthe priorities established in sections 375.700 and 375.1218 in accordancewith such priorities. No bond or indemnity agreement shall be required ofany such association;
(4) A full report to be made by each guaranty association or foreignguaranty association to the liquidator accounting for all assets sodisbursed to the association, all disbursements made therefrom, anyinterest earned by the association on such assets and any other matter asthe court may direct; and
(5) Disbursements to guaranty associations in sums as large aspossible, subject to the limitations set forth in subdivision (1) of thissubsection and subsection 4 of this section. If the liquidator determinesthat there are insufficient assets to disburse at the time of any requireddisbursement, the liquidator shall make application to the court, withnotice to the state insurance commissioners and guaranty associationspursuant to subsection 6 of this section, for approval of an intent not todisburse, stating the reasons for such determination.
3. Subject only to the provisions of subdivision (4) of subsection 2of this section, guaranty associations shall not be charged interest onassets disbursed pursuant to this section.
4. The liquidator's proposal shall provide for disbursements to eachguaranty association of foreign guaranty associations in amounts at leastequal to the sum of claims payments and allocated lost adjustment expensesof each guaranty association, and a reasonable estimate of reserves forunpaid but known loss claims and allocated loss adjustment expensesexpected to be paid within one year by each guaranty association. Amountsused for such calculation shall be those reported to the liquidator by eachguaranty association in its most recent financial report to the liquidator.The liquidator's proposal shall further provide that if the assetsavailable for required disbursements do not equal or exceed the amount ofsuch claim payments to be made by the association, the requireddisbursements may be in the amount of available assets. Unless otherwiseprovided by the court, the reserves of the insolvent insurer, as reflectedin its records or in the financial examination leading to the finding ofinsolvency, on the date of the final order of liquidation, shall be used todetermine the initial disbursement to the guaranty associations. Theliquidator shall liquidate the assets of the insurer in an expeditiousmanner, but is not required to make forced or quick sales that would resultin obtaining less than market value for assets.
5. The liquidator's proposal shall, with respect to an insolventinsurer writing life or health insurance or annuities, provide fordisbursements of assets to any guaranty association or any foreign guarantyassociation covering life or health insurance or annuities or to any otherentity or organization reinsuring, assuming or guaranteeing policies orcontracts of insurance pursuant to the laws creating such associations.
6. Notice of each application shall be given to each guarantyassociation or foreign guaranty associations in and to the commissioners ofthe insurance departments of each of the involved states. Any such noticeshall be deemed to have been given when deposited in the United Statesmail, certified delivery, first class postage prepaid, at least thirty daysprior to submission of such application to the court. Action on theapplication may be taken by the court provided the above-required noticehas been given.
7. The liquidator shall not offset the amount to be disbursed to aguaranty association or a foreign guaranty association by the amount of anyspecial deposit or any other statutory deposit or asset of the insolventinsurer held in this state or another state unless such deposit has beenforwarded to the guaranty association.
