Oklahoma § 36-2011 - Proposal to distribute assets of insolvent company Notice

§ 36-2011. Proposal to distribute assets of insolvent company Notice

A. Within one hundred twenty (120) days of a final

determination of insolvency of a company by a court of competent

jurisdiction of this state, the receiver shall make application to

the court for approval of a proposal to disburse assets out of such

company's marshalled assets from time to time as such assets become

available to the Oklahoma Property and Casualty Insurance Guaranty

Fund and to any entity or person performing a similar function in

another state. The Oklahoma Property and Casualty Insurance

Guaranty Fund and any entity or person performing a similar function

in other states shall hereinafter be referred to collectively as the

Associations.

B. Such proposal shall at least include provisions for:

1. Reserving amounts for the payment of expenses of

administration and claims falling within priorities higher than that

of the Fund;

2. Disbursement of the assets marshalled to date and subsequent

disbursements of assets as they become available;

3. Equitable allocation of disbursements to each of the

associations entitled thereto;

4. The securing by the receiver from each of the associations

entitled to disbursements of an agreement to return to the receiver

such assets previously disbursed as may be required to pay claims of

secured creditors and claims falling within priorities higher than

that of the Fund in accordance with such priorities. No bond shall

be required of any such association; and

5. A full report to be made by the association to the receiver

accounting for all assets so disbursed to the association on such

assets and any other matter as the court may direct.

C. The receiver's proposal shall provide for disbursements to

the association in amounts estimated at least equal to the claim

payments made or to be made thereby for which such associations

could assert a claim against the receiver, and shall further provide

that if the assets available for disbursement from time to time do

not equal or exceed the amount of such claim payments made or to be

made by the association then disbursements shall be in the amount of

available assets.

D. Notice of such application shall be given to the

associations in and to the Commissioners of Insurance of each of the

states. Any such notice shall be deemed to have been given when

deposited in the United States certified mail, first class postage

prepaid, at least thirty (30) days prior to submission of such

Oklahoma Statutes - Title 36. Insurance

application to the court. Action on the application may be taken by

the court provided the above required notice has been given, and

provided further that the receiver's proposal complies with

paragraphs 1 and 4 of subsection B of this section.

Laws 1980, c. 362, § 11, emerg. eff. June 27, 1980.