Advanced Search

§431:15‑409  Interstate priorities


Published: 2015

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
     §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]