2006 Utah Code - 31A-27-337 — Distribution of assets.

     31A-27-337.   Distribution of assets.
     (1) (a) Subject to any instructions the court may give, the liquidator shall make distributions in a manner that will assure the proper recognition of priorities and a reasonable balance between the expeditious completion of the liquidation and the protection of unliquidated and undetermined claims, including third party claims.
     (b) Distribution of assets in kind may be made at valuations set by agreement between the liquidator and the creditor and approved by the court in advance of the distribution.
     (2) (a) The liquidator shall make distributions to guaranty funds and associations under Subsection (1) to satisfy their claims under Chapter 28, Guaranty Associations, or similar laws of other states, if the claims have been filed pursuant to rules established under Subsections 31A-27-328(1) and (4).
     (b) The total distributions to guaranty funds and associations paid under this Subsection (2) may not exceed the total of the claims properly made by the funds and associations under Subsections 31A-27-328(1) and (4).
     (c) The liquidator shall pay distributions as frequently as is practicable and in sums as large as possible without sacrificing asset values by untimely disposition or inequitable allocation of available assets.
     (d) The liquidator may protect against inequitable allocations by making payments to funds and associations subject to binding agreements by the funds or associations to repay any portions of the distributions that are later found to be in excess of an equitable allocation.
     (e) If assets are available, the liquidator may lend to guaranty funds and associations, subject to express advance court approval.
     (3) (a) The liquidator shall report to the court within 120 days after the day the liquidation order is issued under Section 31A-27-310, on the status of the assets of the liquidation estate.
     (b) (i) After the report required by Subsection (3)(a), the liquidator will report to the court on the status of the liquidation on a calendar quarter basis.
     (ii) A report required by this Subsection (3)(b) shall be due within 45 days of the end of the calendar quarter unless the court orders otherwise.
     (c) The court may order the liquidator to make distributions to guaranty funds and associations under Subsection (2) more expeditiously to minimize the need for assessments under Chapter 28, Guaranty Associations, or similar laws of other states.
     (4) (a) Upon liquidation of a domestic nonlife mutual insurance company, any assets held in excess of the company's liabilities and of the amounts that may be paid to the company's members as provided under Subsection (4)(b) shall be paid into the state treasury to the credit of the Uniform School Fund.
     (b) The maximum amount payable upon liquidation to any member for and on account of that member's membership in a domestic nonlife mutual insurance company, in addition to the insurance benefits promised in the policy, is the total of all premium payments made by the member within the past five years with interest at the legal rate compounded annually.

Amended by Chapter 308, 2002 General Session