2019 US Virgin Islands Code
Title 22 - Insurance
Chapter 51 - Mergers, Rehabilitation, Liquidation
§ 1261. Uniform Insurers Liquidation Act
Universal Citation: V.I. Code tit. 22, § 1261 (2019)
- This section and sections 1262–1268, inclusive, of this title, comprise and may be cited as the “Uniform Insurers Liquidation Act.” For the purposes of such Act:
- “Ancillary state” means any state other than a domiciliary state. “Delinquency proceeding” means any proceeding commenced against an insurer for the purpose of liquidating, rehabilitating, reorganizing, or conserving such insurer. “Domiciliary state” means the state in which an insurer is incorporated or organized, or, in the case of an insurer incorporated or organized in a foreign country, the state in which such insurer, having become authorized to do business in such state, has, at the commencement of delinquency proceedings, the largest amount of its assets held in trust and assets held on deposit for the benefit of its policyholders or policyholders and creditors in the United States; and any such insurer is deemed to be domiciled in such state. “Foreign country” means territory not in any state. “General assets” means all property, real, personal, or otherwise, not specifically mortgaged, pledged, deposited, or otherwise encumbered for the security or benefit of specified persons or a limited class or classes of persons, and as to such specifically encumbered property the term includes all such property or its proceeds in excess of the amount necessary to discharge the sum or sums secured thereby. Assets held in trust and assets held on deposit for the security or benefit of all policyholders, or all policyholders and creditors in the United States, shall be deemed general assets. “Insurer” means any person, firm, corporation, association, or aggregation of persons doing an insurance business and subject to the insurance supervisory authority of, or to liquidation, rehabilitation, reorganization, or conservation by, the Commissioner, or the equivalent insurance supervisory official of a state. “Preferred claim” means any claim with respect to which the law of a state of the United States accords priority of payment from the general assets of the insurer. “Receiver” means receiver, liquidator, rehabilitator, or conservator as the context may require. “Reciprocal state” means any state other than this territory in which in substance and effect the provisions of sections 1261–1268, inclusive, of this title are in force, including the provisions requiring that the Commissioner of Insurance or equivalent insurance supervisory official be the receiver of a delinquent insurer. “Secured claim” means any claim secured by mortgage, trust, deed, pledge, deposit as security, escrow, or otherwise, but not including special deposit claim or claims against general assets. The term also includes claims which more than four months prior to the commencement of delinquency proceedings in the state of the insurer's domicile have become liens upon specific assets by reason of judicial process. “Special deposit claim” means any claim secured by a deposit made pursuant to statute for the security or benefit of a limited class or classes or persons, but not including any general assets. “State” means any state of the United States, and also the District of Columbia and the Commonwealth of Puerto Rico.
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