Indiana Code
Chapter 3. Formal Proceedings
27-9-3-32. Proposal to Disburse Assets

Sec. 32. (a) Within one hundred twenty (120) days of a final determination of insolvency of an insurer by the Marion County circuit court, the liquidator shall make application to that court for approval of a proposal to disburse assets out of marshalled assets, from time to time as those assets become available, to a guaranty association or foreign guaranty association having obligations because of the insolvency. If the liquidator determines that there are insufficient assets to disburse, the application required by this section shall be considered satisfied by the liquidator filing a statement setting forth the reasons for this determination.
(b) The proposal to disburse assets must include:
(1) Reserving amounts for the payment of expenses of administration and the payment of claims of secured creditors, to the extent of the value of the security held, and claims falling within the priorities established in section 40 of this chapter (Classes 1 and 2).
(2) Disbursement of the assets marshalled to date and subsequent disbursement of assets as they become available.
(3) Equitable allocation of disbursements to each of the guaranty associations and foreign guaranty associations entitled to disbursements.
(4) The securing by the liquidator from each of the associations entitled to disbursements under this section of an agreement to return to the liquidator those assets, together with income earned on assets previously disbursed, as may be required to pay claims of secured creditors and claims falling within the priorities established in section 40 of this chapter in accordance with those priorities. A bond may not be required of any guaranty association or foreign guaranty association.
(5) A full report to be made by each association to the liquidator accounting for all assets so disbursed to the association, all disbursements made therefrom, any interest earned by the association on those assets and any other matter as the court may direct.
(c) The liquidator's proposal must provide:
(1) for disbursements to the associations in amounts estimated at least equal to the claim payments made or to be made by disbursements for which those associations could assert a claim against the liquidator; and
(2) that if the assets available for disbursement from time to time do not equal or exceed the amount of the claim payments made or to be made by the association then disbursements shall be in the amount of available assets.
(d) With respect to an insolvent insurer writing life or health insurance or annuities, the liquidator's proposal must provide for disbursements of assets to any guaranty association or any foreign guaranty association covering life or health insurance or annuities or to any other entity or organization reinsuring, assuming, or guaranteeing policies or contracts of insurance under the laws creating those associations.
(e) Notice of application must be given to the association in and to the commissioners of insurance of each of the states. The notice shall be considered to have been given when deposited in the United States certified mails, first-class postage prepaid, at least thirty (30) days before submission of the application to the Marion County circuit court. Action on the application may be taken by the Marion County circuit court provided that:
(1) the required notice has been given; and
(2) the liquidator's proposal complies with subsections (b)(1) and (b)(2).
As added by Acts 1979, P.L.255, SEC.1.

Structure Indiana Code

Indiana Code

Title 27. Insurance

Article 9. Supervision; Rehabilitation; Liquidation

Chapter 3. Formal Proceedings

27-9-3-0.1. Application of Certain Amendments to Chapter

27-9-3-1. Petition to Rehabilitate Insurer

27-9-3-2. Order to Rehabilitate Insurer

27-9-3-3. Rehabilitator; Personnel; Term; Compensation; Powers; Plan

27-9-3-4. Pending Actions; Protection of Insurer After Rehabilitation Order

27-9-3-5. Petition for Liquidation; Termination of Rehabilitation

27-9-3-6. Basis for Liquidation

27-9-3-7. Order to Liquidate; Content; Effect; Declaration of Insolvency; Accounting

27-9-3-8. Termination of Insurance Coverage

27-9-3-9. Dissolution of Corporate Existence; Authorized Acts of Liquidator

27-9-3-10. Notice of Liquidation by Liquidator

27-9-3-11. Notice of Liquidation by Insurance Producers to Policyholders

27-9-3-12. Actions After Liquidation Orders

27-9-3-13. Listing of Assets

27-9-3-14. Transfers Made or Obligations Incurred as Fraudulent

27-9-3-15. Transfers After Petition; Validity

27-9-3-16. Preferences

27-9-3-17. Transfers; Time Perfected

27-9-3-18. Liens

27-9-3-19. Transfers on Account of New and Contemporaneous Consideration

27-9-3-20. Liens Dissolved by Furnishing Bond; Effect of Voidable Lien

27-9-3-21. Discharge From Voidable Lien

27-9-3-22. Jurisdiction of Marion County Circuit Court Under This Chapter

27-9-3-23. Discharge of Surety Under Releasing Bond

27-9-3-24. Extension of Unsecured Credit by Preferred Creditor

27-9-3-25. Payment to Attorney for Services

27-9-3-26. Personal Liability Relating to Improper Preferences

27-9-3-27. Claims by Creditors Holding Voidable Preferences

27-9-3-28. Setoff of Mutual Debts or Credits

27-9-3-29. Liquidator's Report; Assessment of Members

27-9-3-30. Repealed

27-9-3-30.1. Reinsurance; Method of Payment Upon Liquidation

27-9-3-31. Liability for Payment of Premiums by Insured and Person Other Than Insured; Penalties

27-9-3-32. Proposal to Disburse Assets

27-9-3-33. Filing Proof of Claims

27-9-3-34. Content of Proof of Claim

27-9-3-34.5. Administration of Large Deductible Worker's Compensation Policy

27-9-3-35. Claims Subject to Contingencies

27-9-3-36. Claims by Insured or by Third Party

27-9-3-37. Denial of Claim; Objections; Hearing

27-9-3-38. Claims in Name of Secured Creditors

27-9-3-39. Valuation of Security Held by Secured Creditor

27-9-3-40. Priority of Distribution of Claims

27-9-3-40.5. Segregated Investment Accounts

27-9-3-41. Settlement of Claims; Report of Unresolved Claims; Action of Court on Report

27-9-3-42. Payment of Distributions

27-9-3-43. Deposit of Unclaimed Funds

27-9-3-44. Discharge of Liquidator

27-9-3-45. Reopening of Proceedings

27-9-3-46. Destruction of Records

27-9-3-47. Audit of Books of Commissioner Relating to Receivership