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


Latest version.
  • (1)
    (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.
    (4)
    (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