31A-27a-703. Partial and final distributions of assets.

334 words·~2 min read·/ut/title-31a/chapter-27a/31a-27a-703

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)With the approval of the receivership court, a liquidator may declare and pay:

(i)one or more partial distributions on claims as those claims are allowed; and

(ii)a final distribution.

(b)All claims allowed within a priority class shall be paid at substantially the same percentage.

(c)A distribution under this section to a guaranty association is not an advance under Section 31A-27a-704 .

(2)In determining the percentage of distributions to be paid on a claim, the liquidator may consider:

(a)the estimated value of the insurer's property, including estimated reinsurance recoverables in connection with the insurer's estimated liabilities for:

(i)unpaid losses and loss expenses; and

(ii)incurred but not reported losses and loss expenses; and

(b)the estimated value of the insurer's liabilities, including estimated liabilities for:

(i)unpaid losses and loss expenses; and

(ii)incurred but not reported losses and loss expenses.

(3)Distribution of property in kind may be made at valuations set by agreement:

(a)between the liquidator and the creditor; and

(b)as approved by the receivership court.

(a)Notwithstanding Subsection

(1)and Part 6, Claims , the liquidator may pay benefits under a workers' compensation policy after the day on which the liquidation order is entered if:

(i)there is an acceptance of liability by the insurer, and no bona fide dispute exists;

(ii)payment is commenced before the entry of the liquidation order; and

(iii)future or past indemnity or medical payments are due.

(b)A claim payment under this Subsection

(4)may continue until the applicable guaranty association:

(i)assumes responsibility for the claim payments; or

(ii)determines the claim is not a covered claim under its guaranty association law.

(c)A claim payment or related expense made under this Subsection

(4)may be treated as early access distribution under Section 31A-27a-704 in accordance with an agreement with the guaranty association responsible for the payment.

Enacted by Chapter 309 , 2007 General Session