Current as of: 2010
(a) (1) If on issuance of an order of liquidation under this subtitle or at any time during a liquidation proceeding the insurer is not clearly solvent, the court, after notice it considers proper and a hearing, shall issue an order that the insurer is an impaired insurer.
(2) Notwithstanding any previous notice given to creditors, after issuance of an order under paragraph (1) of this subsection, the Commissioner shall notify each person that may have a claim against the insurer that the claim is forever barred unless the person files the claim with the Commissioner at a place and within the time specified in the notice.
(3) The time specified in the notice:
(i) shall be as set by the court for filing claims; but
(ii) may not be less than 6 months after issuance of the order that the insurer is an impaired insurer.
(4) The notice shall be given in the manner and for the reasonable period of time that the court orders.
(b) (1) Each claimant shall set forth in reasonable detail:
(i) the amount of the claim or the basis on which the amount can be determined;
(ii) the facts on which the claim is based; and
(iii) any priority asserted by the claimant.
(2) Each claim shall:
(i) be verified by the affidavit of the claimant or a person authorized to act on behalf of the claimant who has knowledge of the facts; and
(ii) be supported by any documents that may be material to the claim.
(3) Each claim filed in the State shall be filed with the domiciliary receiver or ancillary receiver in the State on or before the last date specified under this subtitle for filing of claims.
(c) The receiver shall:
(1) report a claim to the court:
(i) within 10 days after receiving the claim; or
(ii) within an additional period set by the court for good cause shown; and
(2) recommend in the report action to be taken on the claim.
(d) (1) On receipt of the report of the receiver, the court shall:
(i) set a time for hearing the claim; and
(ii) direct the claimant or receiver to give notice as the court determines to each person that appears to the court to be interested in the claim.
(2) The notice given in accordance with this subsection shall:
(i) specify the time and place of the hearing; and
(ii) state concisely:
1. the amount and nature of the claim;
2. any priority asserted by the claimant; and
3. the recommendation of the receiver about the claim.<Prev
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U.S. Code Provisions: Insurance
Federal Regulations: Insurance