31A-28-114 - Miscellaneous provisions.
31A-28-114. Miscellaneous provisions.
(1) Nothing in this part shall be construed to reduce the liability for unpaid assessmentsof the insureds of an impaired or insolvent insurer operating under a plan with assessmentliability.
(2) (a) The board of directors shall keep a record of a meeting of the board of directors todiscuss the activities of the association in carrying out its powers and duties under Section31A-28-108.
(b) A record of the association with respect to an impaired or insolvent insurer may notbe disclosed before the earlier of:
(i) the termination of a liquidation, rehabilitation, or conservation proceeding involvingthe impaired or insolvent insurer;
(ii) the termination of the impairment or insolvency of the insurer; or
(iii) upon the order of a court of competent jurisdiction.
(c) Nothing in this Subsection (2) limits the duty of the association to render a report ofits activities under Section 31A-28-115.
(3) (a) For the purpose of carrying out its obligations under this part, the association isconsidered to be a creditor of an impaired or insolvent insurer to the extent of assets attributableto covered policies reduced by any amounts to which the association is entitled as subrogeepursuant to Subsection 31A-28-108(14).
(b) Assets of the impaired or insolvent insurer attributable to covered policies shall beused to continue the covered policies and pay the contractual obligations of the impaired orinsolvent insurer as required by this part.
(c) As used in this Subsection (3), assets attributable to covered policies are thatproportion of the assets which the reserves that should have been established for covered policiesbear to the reserves that should have been established for all policies of insurance written by theimpaired or insolvent insurer.
(4) (a) As a creditor of the impaired or insolvent insurer under Subsection (3) andconsistent with Section 31A-27a-701, the association and any other similar association areentitled to receive a disbursement of assets out of the marshaled assets, from time to time as theassets become available to reimburse the association and any other similar association.
(b) If, within 180 days of a final determination of insolvency of an insurer by thereceivership court, the receiver has not made an application to the court for the approval of aproposal to disburse assets out of marshaled assets to the guaranty associations havingobligations because of the insolvency, the association is entitled to make application to thereceivership court for approval of the association's proposal for disbursement of these assets.
(5) (a) Before the termination of a liquidation, rehabilitation, or conservation proceeding,the court may take into consideration the contributions of the respective parties, including:
(i) the association;
(ii) the shareholders;
(iii) policyowners of the insolvent insurer; and
(iv) any other party with a bona fide interest in making an equitable distribution of theownership rights of the insolvent insurer.
(b) In making a determination under Subsection (5)(a), the court shall consider thewelfare of the policyowners of the continuing or successor insurer.
(c) A distribution to any stockholder of an impaired or insolvent insurer may not be made
until and unless the total amount of valid claims of the association with interest has been fullyrecovered by the association for funds expended in carrying out its powers and duties underSection 31A-28-108 with respect to the insurer.
Amended by Chapter 292, 2010 General Session