N.Y. Insurance Law § 7413: Priority of preferred claims, special deposit claims and secured claims

§ 7413. Priority of preferred claims, special deposit claims and

secured 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 whether owing to residents or non-residents

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 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 the 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 creditor, 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 amount shall be

conclusive; otherwise the amount shall be determined in the delinquency

proceeding in the domiciliary state.