UTAH CODE (Last Updated: January 16, 2015) |
Title 31A. Insurance Code |
Chapter 27a. Insurer Receivership Act |
Part 7. Distributions |
§ 31A-27a-703. Partial and final distributions of assets.
Latest version.
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(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. (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