40-3656. Same; proceeding in this state involving reciprocal states; order of distribution; equal priority of payment of claims from general assets; special deposit claims; secured claims.
40-3656
40-3656. Same; proceeding in this state involving reciprocal states; orderof distribution; equal priority of payment of claims from general assets;special deposit claims; secured claims.(a) In a liquidation proceeding in this state involving oneormore reciprocal states, the order of distribution of the domiciliary stateshall control as to all claims of residents of this state and reciprocalstates. Allclaims of residents of reciprocal states shall be given equal priority ofpayment from general assets regardless of where such assets are located.
(b) The owners of special deposit claims against an insurer for which aliquidator is appointed in this state or any other state shall be givenpriorityagainst the special deposits in accordance with K.S.A. 40-222b and amendmentsthereto. If there is a deficiency in any deposit, so that claims securedby it are not fully discharged from it, the claimants may share in the generalassets, but the sharing shall be deferred until general creditors, and alsoclaimants against other special deposits who have received smaller percentagesfromtheir respective special deposits, have been paid percentages of their claimsequal to the percentage paid from the special deposit.
(c) The owner of a secured claim against an insurer for which a liquidatorhas been appointed in this state or any other state may surrender security andfile aclaim as a general creditor, or the claim may be discharged by resort to thesecurity in accordance with K.S.A. 40-3640, in which case thedeficiency, if any,shall be treated as a claim against the general assets of the insurer on thesame basis as claims of unsecured creditors.
History: L. 1991, ch. 125, § 52; July 1.