2013 New York Consolidated Laws
ISC - Insurance
Article 74 - (7401 - 7437) REHABILITATION, LIQUIDATION, CONSERVATION AND DISSOLUTION OF INSURERS
7413 - Priority of preferred claims, special deposit claims and secured claims.

 
    §  7413.  Priority  of  preferred  claims,  special deposit claims and
  secured claims. (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 whether owing to residents or  non-residents
  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  act, 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 amount shall be
  conclusive; otherwise the amount shall be determined in the  delinquency
  proceeding in the domiciliary state.