1. The director, when charged with the winding up of the affairs of an insolvent insurer, shall make at least twice a year to the court and oftener if the court shall so order, a full report, under oath of the condition and affairs of such insurer.

2. If it shall appear to the court from such report that, after reserving an amount sufficient to pay the probable expense of winding up the insurer, there shall remain in the hands of the director enough cash to pay at least ten percent of the allowed claims, the court may order the same to be distributed according to the rights of the claimants.

3. This section shall apply only to proceedings instituted prior to August 28, 1991.