KRS 304.33-440: Liquidator, disbursement of assets, recommendations to the court.

(1) Immediate Access. Within one hundred twenty (120) days of a final determination

of insolvency of a company by a court of competent jurisdiction of this state, the

liquidator shall make application to the court for approval of a proposal to disburse

assets out of such company's marshalled assets, from time to time as such assets

become available, to guaranty associations or foreign guaranty associations having

obligations because of the insolvency. Such proposal shall at least include provision

for:

(a) Reserving amounts for the payment of the expenses of administration and

claims falling within the priorities established in KRS 304.33-430(1) and (3);

(b) Disbursement of the assets marshalled to date and subsequent disbursements

of assets as they become available;

(c) Equitable allocation of disbursements to each of the associations entitled

thereto; and

(d) The securing by the liquidator from each of the associations entitled to

disbursements pursuant to paragraph (e) of an agreement to return to the

liquidator such assets previously disbursed as may be required to pay claims

of secured creditors and claims falling within the priorities established in KRS

304.33-430(1), (3) and (4) in accordance with such priorities. No bond shall

be required of any such association.

(e) The liquidator's proposal shall also provide for disbursements to the

associations in amounts at least equal to the payments made or to be made

thereby for which associations could assert claims against the liquidator, and

shall further provide that if the assets available for disbursement from time to

time do not equal or exceed the amount of such payments made or to be made

by the association then disbursements shall be in the amount of available

assets.

(f) Notice of such application shall be given to the associations in and to the

commissioners of insurance of each of the states in which the company did

business. Any such notice shall be deemed to have been given when deposited

in the United States certified mails, first class postage prepaid , at least thirty

(30) days prior to submission of such application to the court. Action on the

application may be taken by the court provided the above required notice has

been given and provided further that the liquidator's proposal complies with

this subsection.

(2) Recommended claims. The liquidator shall review all claims duly filed in the

liquidation and shall make such further investigation as he deems necessary. He

may compound, compromise or in any other manner negotiate the amount for which

claims will be recommended to the court. Unresolved disputes shall be determined

under KRS 304.33-400. As often as practicable, he shall present to the court reports

of claims against the insurer with his recommendations. The reports shall include

the name and address of each claimant, the particulars of the claim and the amount

of the claim finally recommended if any. As soon as reasonably possible after the

last day for filing claims, he shall present a list of all claims not already reported. If

the insurer has issued annuities or life insurance policies, the liquidator shall report

the persons to whom, according to the records of the insurer, amounts are owed as

cash surrender values or other investment values and the amounts owed. If the

insurer has issued p olicies on the advance premium plan, the liquidator shall report

the persons to whom, according to the records of the insurer, unearned premiums

are owed and the amounts owed.

(3) Allowance of claims. The court may approve, disapprove, or modify any report on

claims by the liquidator, except that the liquidator's agreements with other parties

shall be final and binding on the court on claims settled for $500 or less. No claim

under a policy of insurance shall be allowed for an amount in excess of the

applicable policy limits.