(a) In a delinquency proceeding against an insurer domiciled in this state, claims owing to residents of ancillary states shall be preferred claims if like claims are preferred under the laws of this state. All such claims owing to residents or nonresidents shall be given equal priority of payment from general assets regardless of where such assets are located.
(b) In a delinquency proceeding against an insurer domiciled in a reciprocal state, claims owing to residents of this state shall be preferred if like claims are preferred by the laws of that state.
(c) The owners of special deposit claims against an insurer for which a receiver is appointed in this or any other state shall be given priority against their several special deposits in accordance with the provisions of the statutes governing the creation and maintenance of such deposits. If there is a deficiency in any such deposit so that the claims secured thereby are not fully discharged therefrom, the claimants may share in the general assets, but such sharing shall be deferred until general creditors and also claimants against other special deposits who have received smaller percentages from their respective special deposits have been paid percentages of their claims equal to the percentage paid from the special deposit.
(d) The owner of a secured claim against an insurer for which a receiver has been appointed in this or any other state may surrender his security and file his claim as a general creditor, or the claim may be discharged by resort to the security, in which case the deficiency, if any, shall be treated as a claim against the general assets of the insurer on the same basis as claims of unsecured creditors. If the amount of the deficiency has been adjudicated in ancillary proceedings as provided in this chapter or if it has been adjudicated by a court of competent jurisdiction in proceedings in which the domiciliary receiver has had notice and opportunity to be heard, such amounts shall be conclusive; otherwise, the amount shall be determined in the delinquency proceeding in the domiciliary state.
Structure Code of Alabama
Chapter 32 - Rehabilitation, Reorganization, Conservation, and Liquidation of Insurers.
Section 27-32-1 - Definitions.
Section 27-32-2 - Purpose of Chapter; Construction Thereof.
Section 27-32-3 - Delinquency Proceedings - Jurisdiction; Venue; Appeal.
Section 27-32-4 - Delinquency Proceedings - Commencement; Grant or Denial of Application.
Section 27-32-5 - Injunctions and Restraining Orders.
Section 27-32-6 - Grounds - Rehabilitation of Domestic Insurers.
Section 27-32-7 - Grounds - Liquidation of Domestic or Alien Insurers.
Section 27-32-8 - Grounds - Conservation of Assets - Foreign Insurers.
Section 27-32-9 - Grounds - Conservation of Assets - Alien Insurers.
Section 27-32-10 - Grounds - Ancillary Liquidation of Foreign Insurers.
Section 27-32-11 - Orders - Rehabilitation of Domestic Insurers.
Section 27-32-12 - Orders - Liquidation - Domestic Insurers.
Section 27-32-13 - Orders - Liquidation - Alien Insurers.
Section 27-32-14 - Conservation or Liquidation of Property.
Section 27-32-15 - Conduct of Delinquency Proceedings - Domestic and Alien Insurers.
Section 27-32-16 - Conduct of Delinquency Proceedings - Foreign Insurers.
Section 27-32-17 - Claims in Delinquency Proceedings - Nonresidents Against Domestic Insurers.
Section 27-32-18 - Claims in Delinquency Proceedings - Residents Against Foreign Insurers.
Section 27-32-19 - Claims in Delinquency Proceedings - Form; Time; Notice and Hearing; Order.
Section 27-32-20 - Claims in Delinquency Proceedings - Priorities.
Section 27-32-21 - Attachment, Garnishment, and Execution.
Section 27-32-22 - Uniform Insurers Liquidation Act.
Section 27-32-23 - Deposit of Moneys Collected.
Section 27-32-24 - Exemption of Commissioner From Fees.
Section 27-32-25 - Loans to Facilitate Rehabilitation, etc., of Insurer.
Section 27-32-26 - Fixation of Rights and Liabilities on Liquidation of Insurer.
Section 27-32-27 - Voidable Transfers and Liens.
Section 27-32-28 - Priority of Compensation Owing Employees of Insurer.
Section 27-32-29 - Setoff of Credits and Debts.
Section 27-32-30 - Claims Upon Liquidation of Insurer - Allowance.
Section 27-32-31 - Claims Upon Liquidation of Insurer - Time to File.
Section 27-32-32 - Assessments - Commissioner's Report.
Section 27-32-33 - Assessments - Levy.
Section 27-32-34 - Assessments - Order to Pay - Generally.
Section 27-32-35 - Assessments - Order to Pay - Publication and Service.
Section 27-32-36 - Assessments - Order to Pay - Judgment.
Section 27-32-37 - Priority of Claims of Policyholders and Beneficiaries - Established.
Section 27-32-38 - Priority of Claims of Policyholders and Beneficiaries - Payment of Claims.
Section 27-32-39 - Priority of Claims of Policyholders and Beneficiaries - Reinsuring of Policies.
Section 27-32-41 - Priority of Claims of Policyholders and Beneficiaries - Liability of Receiver.