Utah Code 31A-27a-703. Partial and final distributions of assets
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Terms Used In Utah Code 31A-27a-703
- creditor: means a person having a claim against an insurer whether the claim is:(5)(a) matured or not matured;(5)(b) liquidated or unliquidated;(5)(c) secured or unsecured;(5)(d) absolute; or(5)(e) fixed or contingent. See Utah Code 31A-27a-102
- Guaranty association: means :
(20)(a) a mechanism mandated by Chapter 28, Guaranty Associations; or(20)(b) a similar mechanism in another state that is created for the payment of claims or continuation of policy obligations of a financially impaired or insolvent insurer. See Utah Code 31A-27a-102- Indemnity: means the payment of an amount to offset all or part of an insured loss. See Utah Code 31A-1-301
- insurer: means a person who:
(23)(a) is doing, has done, purports to do, or is licensed to do the business of insurance;(23)(b) is or has been subject to the authority of, or to rehabilitation, liquidation, reorganization, supervision, or conservation by an insurance commissioner; or(23)(c) is included under Section 31A-27a-104. See Utah Code 31A-27a-102- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Liabilities: is a s defined by and is measured in accordance with the National Association of Insurance Commissioner's Statements of Statutory Accounting Principles, as incorporated in this state by rules made by the department in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the purposes of Subsection 31A-4-113(1)(b)(ii). See Utah Code 31A-27a-102
- Order: means an order of the commissioner. See Utah Code 31A-1-301
- Policy: includes all clauses, riders, endorsements, and papers that are a part of a policy. See Utah Code 31A-27a-102
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- receivership: means a rehabilitation, liquidation, or ancillary receivership. See Utah Code 31A-27a-102
- receivership court: refers to the court in which a delinquency proceeding is pending. See Utah Code 31A-27a-102
- Reinsurance: means a transaction or contract under which an assuming insurer agrees to indemnify a ceding insurer against all, or a part, of a loss that the ceding insurer may sustain under the one or more policies that the ceding insurer issues or will issue. See Utah Code 31A-27a-102
(1)(a) With the approval of the receivership court, a liquidator may declare and pay:(1)(a)(i) one or more partial distributions on claims as those claims are allowed; and(1)(a)(ii) a final distribution.(1)(b) All claims allowed within a priority class shall be paid at substantially the same percentage.(1)(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:(2)(a) the estimated value of the insurer‘s property, including estimated reinsurance recoverables in connection with the insurer’s estimated liabilities for:(2)(a)(i) unpaid losses and loss expenses; and(2)(a)(ii) incurred but not reported losses and loss expenses; and(2)(b) the estimated value of the insurer’s liabilities, including estimated liabilities for:(2)(b)(i) unpaid losses and loss expenses; and(2)(b)(ii) incurred but not reported losses and loss expenses.(3) Distribution of property in kind may be made at valuations set by agreement:(3)(a) between the liquidator and the creditor; and(3)(b) as approved by the receivership court.(4)(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:(4)(a)(i) there is an acceptance of liability by the insurer, and no bona fide dispute exists;(4)(a)(ii) payment is commenced before the entry of the liquidation order; and(4)(a)(iii) future or past indemnity or medical payments are due.(4)(b) A claim payment under this Subsection (4) may continue until the applicable guaranty association:(4)(b)(i) assumes responsibility for the claim payments; or(4)(b)(ii) determines the claim is not a covered claim under its guaranty association law.(4)(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. - Guaranty association: means :