375.1220. Claim disputes--duty of liquidator--estimates allowed, when--commutation and release. - Missouri Statutes

Claim disputes--duty of liquidator--estimates allowed,when--commutation and release.

375.1220. 1. The liquidator shall review all claims duly filed inthe liquidation and shall make such further investigation as the liquidatorshall deem necessary. The liquidator may compound, compromise or in anyother manner negotiate the amount for which claims will be allowed, underthe supervision of the court, except where the liquidator is required bylaw to accept claims as settled by any person or organization. Unresolveddisputes shall be determined pursuant to section 375.1214. No claim undera policy of insurance shall be allowed for any amount in excess of theapplicable policy limits or without regard to policy deductibles.

2. If the fixing or liquidation of any claim or claims would undulydelay the administration of the liquidation or if the administrativeexpense of processing and adjudication of a claim or group of claims of asimilar type would be unduly excessive when compared with the moneys whichare estimated to be available for distribution with respect to such claimor group of claims, the determination and allowance of such claim or claimsmay be made by an estimate. Any such estimate shall be based upon anactuarial evaluation made with reasonable actuarial certainty or uponanother accepted method of valuing claims with reasonable certainty.

3. The estimation of contingent liabilities permitted by subsection 2of this section or any other section of this chapter may be used for thepurpose of fixing a creditor's claim in the estate, and for determining thepercentage of partial or final dividend payments to be paid to creditorswith reported allowed claims. However, nothing in subsection 2 of thissection or any other section in this chapter shall be construed asauthorizing the receiver, or any other entity, to compel payment from areinsurer on the basis of estimated incurred but not reported losses and,except with respect to claims made pursuant to section 375.1212,outstanding reserves. Nothing in this subsection shall be construed toimpair any obligation arising pursuant to any insurance agreement. Experttestimony concerning estimates of incurred but not reported losses may bereceived in evidence in any tribunal whether offered by the receiver or bythe reinsurer, if such testimony is otherwise admissible pursuant tosection 490.065, RSMo.

4. Notwithstanding the provisions of this section or any othersection of this chapter to the contrary, the liquidator may negotiate avoluntary commutation and release of all obligations arising fromreinsurance contracts or other agreements.

5. The provisions of subsection 3 of this section shall not apply toand have no force and effect regarding any formal delinquency proceeding inwhich, prior to August 28, 1999, the court in which such proceeding was oris pending issued any order or decree construing or applying the provisionsof this section.

(L. 1991 H.B. 385, et al. § 92, A.L. 1992 H.B. 1574, A.L. 1999 S.B. 386 §§ 375.1220, D, A.L. 2001 H.B. 459, A.L. 2004 H.B. 1253 merged with S.B. 1235)

(1996) Statute is procedural and may be applied retroactively. Angoff v. Holland-America Insurance Company Trust, 937 S.W.2d 213 (Mo.App.W.D.).