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23-68-135. Early distribution — Definition.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-68-135. Early distribution — Definition.
(a) As used in this section, “distributable asset” means the general assets of an insurer in a liquidation estate except:
(1) Amounts reserved to the extent necessary and appropriate under § 23-68-126(b)(1) as the expenses of the liquidation through and after its closing; and
(2) Amounts reserved to the extent necessary for distribution on claims other than the claims of affected guaranty associations in the priority class of claims under § 23-68-126(b)(2).
(b)(1) An early payment of distributable assets to a guaranty association shall be made:
(A) As frequently as possible after entry of a liquidation order if distributable assets are available, but at least annually; and
(B) In amounts consistent with this section.
(2) An amount distributed to a guaranty association under this section is accounted for as an advance against distributions under § 23-68-126.
(c)(1) Where sufficient distributable assets are available, amounts advanced need not be limited to the claims and expenses paid to date by the guaranty associations.
(2) However, the liquidator shall not distribute distributable assets to the guaranty associations in excess of the anticipated entire claims of the guaranty associations falling within the priority classes of claims established in § 23-68-126(b)(1) and (2).
(d) Within one hundred twenty (120) days after the entry of a liquidation order and at least annually thereafter, the liquidator shall submit to the court:
(1) A financial statement, including:
(A) The assets and liabilities of the insurer;
(B) Any change in the assets and liabilities of the insurer;
(C) The income and expenses of the insurer; and
(D) All funds received or disbursed by the receiver in the liquidation estate du
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-68-135
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:23-68-135
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: e79b4fcf2e5a37ad1a3989d77a1548407ea838f771c0b5afc43ddd8fd4b5dfa8
Source location: content.xml paragraph 40180
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23-68-135. Early distribution — Definition.
(a) As used in this section, “distributable asset” means the general assets of an insurer in a liquidation estate except:
(1) Amounts reserved to the extent necessary and appropriate under § 23-68-126(b)(1) as the expenses of the liquidation through and after its closing; and
(2) Amounts reserved to the extent necessary for distribution on claims other than the claims of affected guaranty associations in the priority class of claims under § 23-68-126(b)(2).
(b)(1) An early payment of distributable assets to a guaranty association shall be made:
(A) As frequently as possible after entry of a liquidation order if distributable assets are available, but at least annually; and
(B) In amounts consistent with this section.
(2) An amount distributed to a guaranty association under this section is accounted for as an advance against distributions under § 23-68-126.
(c)(1) Where sufficient distributable assets are available, amounts advanced need not be limited to the claims and expenses paid to date by the guaranty associations.
(2) However, the liquidator shall not distribute distributable assets to the guaranty associations in excess of the anticipated entire claims of the guaranty associations falling within the priority classes of claims established in § 23-68-126(b)(1) and (2).
(d) Within one hundred twenty (120) days after the entry of a liquidation order and at least annually thereafter, the liquidator shall submit to the court:
(1) A financial statement, including:
(A) The assets and liabilities of the insurer;
(B) Any change in the assets and liabilities of the insurer;
(C) The income and expenses of the insurer; and
(D) All funds received or disbursed by the receiver in the liquidation estate during the reporting period;
(2) A report indicating whether or not distributable assets are available based on the financial statement; and
(3)(A) If distributable assets are available, a request for court approval to make early access payments of the distributable assets available to affected guaranty associations out of the general assets of the insurer.
(B) The liquidator may apply to the court to make early access payments more frequently than annually based on additional financial information or the recovery of material assets.
(e) Within sixty (60) days after approval by the court under subdivision (d)(3) of this section, the liquidator shall make early access payments to a guaranty association as indicated in the approved applications.
(f)(1) Notice of each application for early access payments or any report required under this section shall be given to guaranty associations having obligations arising under this section.
(2) At least thirty (30) days before filing a request with the court under subdivision (d)(3) of this section, the liquidator shall provide notice to guaranty associations together with a complete copy of the request.
(3) A guaranty association may:
(A) Request additional information from the liquidator, and the liquidator shall not unreasonably deny the request; and
(B) Object to a request for distribution or any report filed by the liquidator under this section.
(g) In a request for early access payments, the liquidator, at a minimum and based on the information available to the liquidator at the time, shall provide:
(1) The amount reserved for the expenses of the entire liquidation through and after its closure and for distribution on claims in the priority class of claims under § 23-68-126(b)(1) and (2); and
(2) The calculation of distributable assets and the amount and method of equitable allocation of early access payments to guaranty associations.
(h) Each guaranty association that receives any payments pursuant to this section agrees, upon depositing the payment in any account to its benefit, to return to the liquidator any amount of these payments that may be required to pay claims of secured creditors and claims falling within the priority classes of claims established in § 23-68-126(b)(1) and (2).
(i) A bond is not required of any guaranty association under this section.
(j) Without the consent of affected guaranty associations or an order of the court, the liquidator shall not offset the amount to be distributed to a guaranty association by the amount of a special deposit or other deposit or asset of the insurer held in another state unless the guaranty association has received the deposit or asset.
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Arkansas Code — all titles (historical 2020) · legal_authorities
23-68-126. Priority of distribution of general assets.
(a)(1) The priority of distribution of claims from the general assets of the insurer's estate shall be in accordance with the order in which each class of claims is set forth in this section.
(2) Every claim in each class shall be paid in full, or adequate funds retained for the payment, before the members of the next class receive any payment.
(3) No subclasses shall be established within any class.
(b) The order of distribution of claims shall be:
(1) Class 1. The costs and expenses of administration, including, but not limited to, the following:
(A) The actual and necessary costs of preserving or recovering the assets of the insurer;
(B) Compensation for all services rendered in the liquidation;
(C) Any necessary filing fees from which the receiver is not exempt under § 23-68-122;
(D) The fees and mileage payable to witnesses;
(E) Reasonable attorney's fees; and
(F) The reasonable expenses of the Arkansas Property and Casualty Insurance Guaranty Fund, or any other domestic or foreign guaranty fund or guaranty association, for the handling of claims;
(2)Class 2.
(A) All claims under policies for losses incurred, including third-party claims, and all claims of a domestic or foreign guaranty fund or guaranty association.
(B) All claims under life insurance and annuity policies, whether for death proceeds, annuity proceeds, or investment values, shall be treated as loss claims.
(C) That portion of any loss, for which indemnification is provided by other benefits or advantages recovered by the claimant shall not be included in this class, other than benefits or advantages recovered or recoverable in discharge of familial obligations of support, or by way of succession at death, or as pro
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-68-126
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-68-126. This identifies an authority to review, not proof of applicability.