TITLE 27

Insurance

CHAPTER 27-14.3

Insurers' Rehabilitation and Liquidation Act

SECTION 27-14.3-62



   § 27-14.3-62  Interstate priorities. –

(a) In a liquidation proceeding in this state involving one or more reciprocal

states, the order of distribution of the domiciliary state shall control as to

all claims of residents of this and reciprocal states. All claims of residents

of reciprocal states shall be given equal priority of payment from general

assets regardless of where those assets are located.



   (b) The owners of special deposit claims against an insurer

for which a liquidator is appointed in this or any other state shall be given

priority against the special deposits in accordance with the statutes governing

the creation and maintenance of the deposits. If there is a deficiency in any

deposit, so that the claims secured by it are not fully discharged from it, the

claimants may share in the general assets, but the sharing shall be deferred

until general creditors, and also claimants against other special deposits who

have received smaller percentages from their respective special deposits, have

been paid a percentage of their claims equal to the percentage paid from the

special deposit.



   (c) The owner of a secured claim against an insurer for which

a liquidator has been appointed in this or any other state may surrender his or

her security and file his or her claim as a general creditor, or the claim may

be discharged by resort to the security in accordance with § 27-14.3-45,

in which case the deficiency, if any, shall be treated as a claim against the

general assets of the insurer of the same basis as claims of unsecured

creditors.



History of Section.

(P.L. 1993, ch. 248, § 1.)