{"data":{"id":"us-ky/krs-304.33-440","jurisdiction":"us-ky","citation":"KRS 304.33-440","heading":"Liquidator, disbursement of assets, recommendations to the court.","body":"(1) Immediate Access. Within one hundred twenty (120) days of a final determination\nof insolvency of a company by a court of competent jurisdiction of this state, the\nliquidator shall make application to the court for approval of a proposal to disburse\nassets out of such company's marshalled assets, from time to time as such assets\nbecome available, to guaranty associations or foreign guaranty associations having\nobligations because of the insolvency. Such proposal shall at least include provision\nfor:\n(a) Reserving amounts for the payment of the expenses of administration and\nclaims falling within the priorities established in KRS 304.33-430(1) and (3);\n(b) Disbursement of the assets marshalled to date and subsequent disbursements\nof assets as they become available;\n(c) Equitable allocation of disbursements to each of the associations entitled\nthereto; and\n(d) The securing by the liquidator from each of the associations entitled to\ndisbursements pursuant to paragraph (e) of an agreement to return to the\nliquidator such assets previously disbursed as may be required to pay claims\nof secured creditors and claims falling within the priorities established in KRS\n304.33-430(1), (3) and (4) in accordance with such priorities. No bond shall\nbe required of any such association.\n(e) The liquidator's proposal shall also provide for disbursements to the\nassociations in amounts at least equal to the payments made or to be made\nthereby for which associations could assert claims against the liquidator, and\nshall further provide that if the assets available for disbursement from time to\ntime do not equal or exceed the amount of such payments made or to be made\nby the association then disbursements shall be in the amount of available\nassets.\n(f) Notice of such application shall be  given to the associations in and to the\ncommissioners of insurance of each of the states in which the company did\nbusiness. Any such notice shall be deemed to have been given when deposited\nin the United States certified mails, first class postage prepaid , at least thirty\n(30) days prior to submission of such application to the court. Action on the\napplication may be taken by the court provided the above required notice has\nbeen given and provided further that the liquidator's proposal complies with\nthis subsection.\n(2) Recommended claims. The liquidator shall review all claims duly filed in the\nliquidation and shall make such further investigation as he deems necessary. He\nmay compound, compromise or in any other manner negotiate the amount for which\nclaims will be recommended to the court. Unresolved disputes shall be determined\nunder KRS 304.33-400. As often as practicable, he shall present to the court reports\nof claims against the insurer with his recommendations. The reports shall include\nthe name and address of each claimant, the particulars of the claim and the amount\nof the claim finally recommended if any. As soon as reasonably possible after the\nlast day for filing claims, he shall present a list of all claims not already reported. If\nthe insurer has issued annuities or life insurance policies, the liquidator shall report\nthe persons to whom, according to the records of the insurer, amounts are owed as\ncash surrender values or other investment values and the amounts owed. If the\ninsurer has issued p olicies on the advance premium plan, the liquidator shall report\nthe persons to whom, according to the records of the insurer, unearned premiums\nare owed and the amounts owed.\n(3) Allowance of claims. The court may approve, disapprove, or modify any report  on\nclaims by the liquidator, except that the liquidator's agreements with other parties\nshall be final and binding on the court on claims settled for $500 or less. No claim\nunder a policy of insurance shall be allowed for an amount in excess of the\napplicable policy limits.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29864","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:55Z","sha256":"2923182dbed690e7492e92d6fecb5ebb186aef02dde5c77b720469ee54dbbb3e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.33-431","next":"us-ky/krs-304.33-450"},"notice":"GroundRules: Original legal text. Not legal advice."}