KRS 304.33-380: Special claims.

(1) Claims contingent on judgments. The claim of a third party which is contingent

only on his first obtaining a judgment against the insured shall be considered and

allowed as if there were no such contingency.

(2) Claims under terminated policies. Any claim that would have become absolute if

there had been no termination of coverage under KRS 304.33 -120, and which was

not covered by insurance acquired to replace the terminated coverage, shall be

allowed as if the coverage had remained in effect, unless at lea st ten (10) days

before the insured event occurred either the claimant had actual notice of the

termination or notice was mailed to him as prescribed by subsection (1) of KRS

304.33-250, or subsection (1) of KRS 304.33 -260. If allowed, the claim shall shar e

in distributions under subsection (9) of KRS 304.33-430.

(3) Other contingent claims. A claim may be allowed even if contingent, if it is filed in

accordance with subsection (2) of KRS 304.33 -360. It may be allowed and may

participate in all dividends de clared after it is filed, to the extent that it does not

prejudice the orderly administration of the liquidation.

(4) Immature claims. Claims that are due except for the passage of time shall be treated

as absolute claims are treated, except that where justice requires the court may order

them discounted at the legal rate of interest.

(5) (a) Nothing in this section or any other section in this subtitle shall be construed

as authorizing the receiver, or any other entity, to compel payment from a

reinsurer o n the basis of estimated incurred but not reported losses or

outstanding reserves.

(b) Notwithstanding the provisions of this section or any other section of this

subtitle to the contrary, the liquidator may negotiate a voluntary commutation

and release of all obligations arising from reinsurance contracts or other

agreements.