Formal Proceedings

Section 402-C:29

    402-C:29 Collection and List of Assets. –
I. List of Assets Required. As soon as practicable after the liquidation order, the liquidator shall prepare in duplicate a list of the insurer's assets. The list shall be amended or supplemented as the court requires. One copy shall be filed in the office of the clerk of the court having jurisdiction over the liquidation proceedings and one copy shall be retained for the liquidator's files. All amendments and supplements shall be similarly filed.
II. Liquidation of Assets. The liquidator shall reduce the assets to a degree of liquidity that is consistent with the effective execution of the liquidation as rapidly and economically as he can.
III. Access to Assets.
(a) Within 120 days of a final determination of insolvency of a company by a court of competent jurisdiction of this state, the receiver shall make application to the court for approval of a proposal to disburse assets out of such company's marshalled assets, from time to time as such assets become available, to the New Hampshire Insurance Guaranty Association, the New Hampshire Life and Health Guaranty Association and to any similar organization in another state. The New Hampshire Insurance Guaranty Association, the New Hampshire Life and Health Guaranty Association and any similar organizations in other states shall hereafter be referred to collectively as the associations.
(b) Such proposals shall at least include provision for:
(1) Reserving amounts for the payment of the expenses of administration and the claims falling within priorities established in RSA 402-C:44, I-V;
(2) Disbursement of the assets marshalled to date and subsequent disbursements of assets as they become available;
(3) Equitable allocation of disbursements to each of the associations entitled thereto; and
(4) The securing by the receiver from each of the associations entitled to disbursements pursuant to this section of an agreement to return to the receiver such assets previously disbursed as may be required to pay claims as secured creditors and claims falling within the priorities established in RSA 402-C:44, I-VI in accordance with such priorities. No bonds shall be required of any such association.
(c) The receiver's proposal shall provide for disbursements to the associations in amounts at least equal to the payments made or to be made thereby for which such association could assert claims against the receiver and shall further provide that if the assets available for disbursement from time to time do not equal or exceed the amounts of such payments made or to be made by the associations then disbursements shall be in the amount of available assets.
(d) The receiver's proposal shall, with respect to an insolvent insurer writing life, health insurance or annuities, provide for disbursements of assets to the New Hampshire Life and Health Guaranty Association or to any other entity or organization reinsuring, assuming or guaranteeing policies or contracts of insurance under the provisions of RSA 404-D.
(e) Notice of such application shall be given to the associations in and to the commissioners of insurance of each of the states. Any such notice shall be deemed to have been given when deposited in the United States certified mails, first class postage prepaid, at least 30 days prior to submission of such application to the court. Action on the application may be taken by the court provided the above required notice has been given and provided further that the receiver's proposal complies with subparagraphs (b)(1) and (b)(4).

Source. 1969, 272:1. 1977, 566:1. 1998, 99:2, 3, eff. July 19, 1998.