§431:15‑409 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 State 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 State 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 claim against a guaranty fund or
association or may share in the general assets, but the claim shall be limited
and the sharing shall be deferred until the general creditors having the same
priority, and also the claimants against other special deposits sharing the
same priority who have received smaller percentages from their respective
special deposits, have been paid percentages 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 State or any other
state may surrender the security for the claim and file the claim as a general
creditor, or the claim may be discharged by resort to the security in
accordance with section 431:15‑331, in which case the deficiency, if any,
shall be treated as a claim against the general assets of the insurer on the
same basis as claims of unsecured creditors. [L 1987, c 347, pt of §2]