Section 375.950

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 28 Aug 1992   

  375.950.  Definitions. — 1.  Sections 375.950 to 375.990 may be cited as the "Uniform Insurer's Liquidation Act".

  2.  Sections 375.950 to 375.990 shall apply only to proceedings instituted prior to August 28, 1991.

  3.  For the purposes of sections 375.950 to 375.990:

  (1)  "Ancillary state" means any state other than a domiciliary state;

  (2)  "Delinquency proceeding" means any proceeding commenced against an insurer for the purpose of liquidating, rehabilitating, reorganizing, or conserving such insurer;

  (3)  "Domiciliary state" means the state in which an insurer is incorporated or organized, or, in the case of an alien insurer, the state in which such insurer, having become authorized to do business in such state, has, at the commencement of delinquency proceedings, the largest amount of its assets held in trust and assets held on deposit for the benefit of its policyholders or policyholders and creditors in the United States; and any such insurer is deemed to be domiciled in such state;

  (4)  "Foreign country" means territory not in any state;

  (5)  "General assets" means all property, real, personal, or otherwise, not specifically mortgaged, pledged, deposited, or otherwise encumbered for the security or benefit of specified persons or a limited class or classes of persons, and as to such specifically encumbered property the term includes all such property or its proceeds in excess of the amount necessary to discharge the sum or sums secured thereby.  Assets held in trust and assets held on deposit for the security or benefit of all policyholders, or all policyholders and creditors in the United States, shall be deemed general assets, except that general assets shall not mean unearned premiums due or owed the insurer by the policyholder, agent or broker at the time an insolvency or liquidation is declared by a court of competent jurisdiction, nor shall general assets mean unearned premiums held in trust or held on deposit by the agent, broker or insurer;

  (6)  "Insurer" means any person, firm, corporation, association, or aggregation of persons doing an insurance business under the provisions of chapter 375, 376, 377, 378, 379, 380, 381 or 383, and subject to the insurance supervisory authority of, or to liquidation, rehabilitation, reorganization, or conservation by the director of the department of commerce and insurance of this state, or the equivalent insurance supervisory official of another state;

  (7)  "Preferred claim" means any claim with respect to which the law of a state or of the United States accords priority of payment from the general assets of the insurer;

  (8)  "Receiver" means receiver, liquidator, rehabilitator, or conservator as the context may require;

  (9)  "Reciprocal state" means any state other than this state in which in substance and effect the provisions of sections 375.950 to 375.990 are in force, including the provisions requiring that the insurance commissioner or equivalent insurance supervisory official be the receiver of a delinquent insurer;

  (10)  "Secured claim" means any claim secured by mortgage, trust, deed, pledge, deposit as security, escrow, or otherwise, but not including special deposit claims or claims against general assets.  The term also includes claims which more than four months prior to the commencement of delinquency proceedings in the state of the insurer's domicile have become liens upon specific assets by reason of judicial process;

  (11)  "Special deposit claim" means any claim secured by a deposit for the security or benefit of a limited class or classes of persons, but not including any general assets;

  (12)  "State" means any state of the United States, and also the District of Columbia and Puerto Rico.

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(L. 1976 H.B. 1479 § 1, A.L. 1986 H.B. 1103, A.L. 1992 H.B. 1574)