17:30C-21 - Priority of certain claims - New Jersey Statutes

17:30C-21.  Priority of certain 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 owing to  residents or nonresidents 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 claims 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 a 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 credit, 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 amounts shall be  conclusive;  otherwise the amount shall be determined in the delinquency  proceeding in the domiciliary state.

     L.1975, c. 113, s. 21, eff. June 3, 1975.