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§7435
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§7435 . Distribution for life insurers.
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§7435(a)
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(a) The priority of distribution of claims from the estate of a life insurance company in any proceeding subject to this article shall be in accordance with the order in which each class of claims is herein set forth. Every claim in each class shall, subject to such limitations as may be prescribed by law and do not directly conflict with the express provisions of (this §) ,be paid in full or adequate funds retained for such payment before the members of the next class receive any payment. No subclasses shall be established within any class. The order of distribution of claims shall be:
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§7435(a)(1)
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(1) Class 1. Claims with respect to the actual necessary costs expenses administration, incurred by the liquidator, rehabilitator, conservator or ancillary rehabilitator under this article, or by The Life Insurance Guaranty Corporation or The Life Insurance Company Guaranty Corporation New York, claims described in (sub§ (d)) of this chapter.
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§7435(a)(2)
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(2) Class 2. Debts due to employees for services performed to the ex10t that they do not exceed 1200 and represent payment for services performed within 1 year before the commencement of a proceeding under this article. Such priority shall be in lieu of any other similar priority which may be authorized by law as to wages or compensation of employees.
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§7435(a)(3)
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(3) Class 3. All claims for payment for goods furnished or services rendered to the impaired or insolvent insurer in the ordinary course business within 90 days prior to the date on which the insurer was determined to be impaired or insolvent, whichever is applicable.
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§7435(a)(4)
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(4) Class 4. All claims under insurance policies, annuity contracts funding agreements, all claims The Life Insurance Company Guaranty Corporation New York or any other guaranty corporation or association this state or another jurisdiction, other than (i) claims provided for in paragraph this subsection, and ii1 claims for interest.
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§7435(a)(5)
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(5) Class 5. Claims the federal or any state or local government. Claims, including those any governmental body for a penalty or forfeiture, shall be allowed to this class only to the ex10t the pecuniary loss sustained from the act, transaction or proceeding out which the penalty or forfeiture arose, with reasonable actual costs occasi1d thereby. The remainder such claims shall be postp1d to the class claims under paragraph (this sub§)(8) .
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§7435(a)(6)
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(6) Class 6. Claims general creditors any other claims other than claims under paragraphs (this sub§)(7) and (this sub§)(8) .
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§7435(a)(7)
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(7) Class 7. Surplus, capital or contribution notes, or similar obligations.
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§7435(a)(8)
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(8) Class 8. The claims (i) policyholders, other than claims under paragraph this subsection, and ii4 shareholders or other owners.
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§7435(b)
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(b) Every claim under a separate account agreement providing, in effect, that the assets in the separate account shall not be chargeable with liabilities arising out of any other business of the insurer shall be satisfied out of the assets in the separate account equal to the reserves maintained in such account for such agreement and, to the extent, if any, not fully discharged thereby, shall be treated as a class 4 claim against the estate of the life insurance company.
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§7435(c)
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(c) For purposes of (this §) :
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§7435(c)(1)
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(1) "The estate of the life insurance company" shall mean the general assets of such company less any assets held in separate accounts that, pursuant to §4240 of this chapter, are not chargeable with liabilities arising out of any other business of the insurer.
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§7435(c)(2)
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(2) "Insurance policies, annuity contracts and funding agreements" shall mean all policies and contracts of any of the kinds of insurance specified in paragraph §1113(a)(1) , §1113(a)(2) or §1113(a)(3) of this chapter and all funding agreements described in §3222 of this chapter, including all separate account agreements, except that separate account agreements referred to in subsection (this §)(b) shall be included only to the extent referred to therein.
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§7435(c)(3)
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(3) "Separate account agreement or agreements" shall mean any agreement or agreements for separate accounts referred to in §4240 of this chapter. Source Data downloaded: 2009-04-09 15: 54: 05; Processed: 2009-05-08 15: 36: 33
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