Third party claims for actions against insureds, filedhow--procedures.
375.1212. 1. Whenever any third party asserts a cause ofaction against an insured of an insurer in liquidation, the thirdparty may file a claim with the liquidator.
2. Whether or not the third party files a claim, theinsured may file a claim on his own behalf in the liquidation.If the insured fails to file a claim by the date for filingclaims specified in the order of liquidation or within sixty daysafter mailing of the notice required by section 375.1185,whichever is later, he is an unexcused late filer.
3. The liquidator shall make his recommendations to thecourt under section 375.1218, for the allowance of an insured'sclaim under subsection 2 of this section after consideration ofthe probable outcome of any pending action against the insured onwhich the claim is based, the probable damages recoverable in theaction and the probable costs and expenses of defense. Afterallowance by the court, the liquidator shall withhold anydividends payable on the claims, pending the outcome ofliquidation and negotiation with the insured. Whenever it seemsappropriate, he shall reconsider the claim on the basis ofadditional information and amend his recommendations to thecourt. The insured shall be afforded the same notice andopportunity to be heard on all changes in the recommendation asin its initial determination. The court may amend its allowanceas it thinks appropriate. As claims against the insured aresettled or barred, the insured shall be paid from the amountwithheld the same percentage dividend as was paid on other claimsof like property, based on the lesser of the amount actuallyrecovered from the insured by action or paid by agreement plusthe reasonable costs and expense of defense, or the amountallowed on the claims by the court. After all claims are settledor barred, any sum remaining from the amount withheld shallrevert to the undistributed assets of the insurer. Delay infinal payment under this subsection shall not be a reason forunreasonable delay of final distribution and discharge of theliquidator.
4. The liability of the insurer relating to liabilitiesincurred, but for which claims relating to such liabilities arenot reported, accrued or claimed, shall be determined withreference to the provisions of this subsection. In such anevent, the amount of such liabilities shall be calculated, attheir present value, by a panel appointed pursuant to thissubsection. The liquidator and the claimant shall each appointone arbitrator, and the court shall appoint a special magistratewho shall preside over all proceedings under this subsection.Thereupon, the panel shall hear and determine the amount of suchliabilities pursuant to the procedures provided by sections435.365 to 435.395, RSMo. Any party to the proceeding shall haveall rights provided by sections 435.400 to 435.455, RSMo, and theprovisions of said sections shall be applicable to suchproceedings.
5. If several claims founded upon one policy are filed,whether by third parties or claims by the insured under thissection, and the aggregate allowed amount of the claims to whichthe same limit of liability in the policy is applicable exceedsthat limit, each claim as allowed shall be reduced in the sameproportion so that the total equals the policy limit. Claims bythe insured shall be evaluated as provided in subsection 3 ofthis section. If any insured's claim is subsequently reducedunder subsection 3 of this section, the amount thus freed shallbe apportioned ratably among the claims which have been reducedunder this subsection.
6. No claim may be presented under this section if it is ormay be covered by any guaranty association or foreign guarantyassociation.
Third party claims for actions against insureds, filedhow--procedures.
375.1212. 1. Whenever any third party asserts a cause ofaction against an insured of an insurer in liquidation, the thirdparty may file a claim with the liquidator.
2. Whether or not the third party files a claim, theinsured may file a claim on his own behalf in the liquidation.If the insured fails to file a claim by the date for filingclaims specified in the order of liquidation or within sixty daysafter mailing of the notice required by section 375.1185,whichever is later, he is an unexcused late filer.
3. The liquidator shall make his recommendations to thecourt under section 375.1218, for the allowance of an insured'sclaim under subsection 2 of this section after consideration ofthe probable outcome of any pending action against the insured onwhich the claim is based, the probable damages recoverable in theaction and the probable costs and expenses of defense. Afterallowance by the court, the liquidator shall withhold anydividends payable on the claims, pending the outcome ofliquidation and negotiation with the insured. Whenever it seemsappropriate, he shall reconsider the claim on the basis ofadditional information and amend his recommendations to thecourt. The insured shall be afforded the same notice andopportunity to be heard on all changes in the recommendation asin its initial determination. The court may amend its allowanceas it thinks appropriate. As claims against the insured aresettled or barred, the insured shall be paid from the amountwithheld the same percentage dividend as was paid on other claimsof like property, based on the lesser of the amount actuallyrecovered from the insured by action or paid by agreement plusthe reasonable costs and expense of defense, or the amountallowed on the claims by the court. After all claims are settledor barred, any sum remaining from the amount withheld shallrevert to the undistributed assets of the insurer. Delay infinal payment under this subsection shall not be a reason forunreasonable delay of final distribution and discharge of theliquidator.
4. The liability of the insurer relating to liabilitiesincurred, but for which claims relating to such liabilities arenot reported, accrued or claimed, shall be determined withreference to the provisions of this subsection. In such anevent, the amount of such liabilities shall be calculated, attheir present value, by a panel appointed pursuant to thissubsection. The liquidator and the claimant shall each appointone arbitrator, and the court shall appoint a special magistratewho shall preside over all proceedings under this subsection.Thereupon, the panel shall hear and determine the amount of suchliabilities pursuant to the procedures provided by sections435.365 to 435.395, RSMo. Any party to the proceeding shall haveall rights provided by sections 435.400 to 435.455, RSMo, and theprovisions of said sections shall be applicable to suchproceedings.
5. If several claims founded upon one policy are filed,whether by third parties or claims by the insured under thissection, and the aggregate allowed amount of the claims to whichthe same limit of liability in the policy is applicable exceedsthat limit, each claim as allowed shall be reduced in the sameproportion so that the total equals the policy limit. Claims bythe insured shall be evaluated as provided in subsection 3 ofthis section. If any insured's claim is subsequently reducedunder subsection 3 of this section, the amount thus freed shallbe apportioned ratably among the claims which have been reducedunder this subsection.
6. No claim may be presented under this section if it is ormay be covered by any guaranty association or foreign guarantyassociation.
Third party claims for actions against insureds, filedhow--procedures.
375.1212. 1. Whenever any third party asserts a cause ofaction against an insured of an insurer in liquidation, the thirdparty may file a claim with the liquidator.
2. Whether or not the third party files a claim, theinsured may file a claim on his own behalf in the liquidation.If the insured fails to file a claim by the date for filingclaims specified in the order of liquidation or within sixty daysafter mailing of the notice required by section 375.1185,whichever is later, he is an unexcused late filer.
3. The liquidator shall make his recommendations to thecourt under section 375.1218, for the allowance of an insured'sclaim under subsection 2 of this section after consideration ofthe probable outcome of any pending action against the insured onwhich the claim is based, the probable damages recoverable in theaction and the probable costs and expenses of defense. Afterallowance by the court, the liquidator shall withhold anydividends payable on the claims, pending the outcome ofliquidation and negotiation with the insured. Whenever it seemsappropriate, he shall reconsider the claim on the basis ofadditional information and amend his recommendations to thecourt. The insured shall be afforded the same notice andopportunity to be heard on all changes in the recommendation asin its initial determination. The court may amend its allowanceas it thinks appropriate. As claims against the insured aresettled or barred, the insured shall be paid from the amountwithheld the same percentage dividend as was paid on other claimsof like property, based on the lesser of the amount actuallyrecovered from the insured by action or paid by agreement plusthe reasonable costs and expense of defense, or the amountallowed on the claims by the court. After all claims are settledor barred, any sum remaining from the amount withheld shallrevert to the undistributed assets of the insurer. Delay infinal payment under this subsection shall not be a reason forunreasonable delay of final distribution and discharge of theliquidator.
4. The liability of the insurer relating to liabilitiesincurred, but for which claims relating to such liabilities arenot reported, accrued or claimed, shall be determined withreference to the provisions of this subsection. In such anevent, the amount of such liabilities shall be calculated, attheir present value, by a panel appointed pursuant to thissubsection. The liquidator and the claimant shall each appointone arbitrator, and the court shall appoint a special magistratewho shall preside over all proceedings under this subsection.Thereupon, the panel shall hear and determine the amount of suchliabilities pursuant to the procedures provided by sections435.365 to 435.395, RSMo. Any party to the proceeding shall haveall rights provided by sections 435.400 to 435.455, RSMo, and theprovisions of said sections shall be applicable to suchproceedings.
5. If several claims founded upon one policy are filed,whether by third parties or claims by the insured under thissection, and the aggregate allowed amount of the claims to whichthe same limit of liability in the policy is applicable exceedsthat limit, each claim as allowed shall be reduced in the sameproportion so that the total equals the policy limit. Claims bythe insured shall be evaluated as provided in subsection 3 ofthis section. If any insured's claim is subsequently reducedunder subsection 3 of this section, the amount thus freed shallbe apportioned ratably among the claims which have been reducedunder this subsection.
6. No claim may be presented under this section if it is ormay be covered by any guaranty association or foreign guarantyassociation.
