2019 US Virgin Islands Code
Title 22 - Insurance
Chapter 51 - Mergers, Rehabilitation, Liquidation
§ 1266. Priority of certain claims

Universal Citation: V.I. Code tit. 22, § 1266 (2019)
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  • (a) In a liquidation proceeding in this territory involving one or more reciprocal states, territories, or commonwealths, the order of distribution of the domiciliary state shall control as to all claims of residents of this and of reciprocal states, territories, or commonwealths. All claims of residents of this territory and of reciprocal states, territories, and commonwealths shall be given equal priority of payment from general assets regardless of where such assets are located.

  • (b) The owners of special deposit claims against an insurer for which a receiver is appointed in this territory or any 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.

  • (c) The owner of a secured claim against an insurer for which a receiver has been appointed in this territory or any 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 sections 1261–1268, inclusive, of this title, 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.

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