§ 7061. Notice to creditors and others
(a) Unless the court otherwise directs, the liquidator shall give or cause to be given
notice of the liquidation order as soon as possible:
(1) by first-class mail and either by telegram or telephone to the insurance commissioner
of each jurisdiction in which the insurer is doing business;
(2) by first-class mail to any guaranty association or foreign guaranty association which
is or may become obligated as a result of the liquidation;
(3) by first-class mail to all insurance agents of the insurer;
(4) by first-class mail to all persons known or reasonably expected to have claims against
the insurer including all policyholders, at their last known address as indicated
by the records of the insurer; and
(5) by publication in a newspaper of general circulation in the county in which the insurer
has its principal place of business and in such other locations as the liquidator
deems appropriate.
(b) Notice to potential claimants under subsection (a) of this section shall require claimants
to file with the liquidator their claims together with proper proofs thereof under
section 7075 of this title, on or before a date the liquidator shall specify in the notice. Although an earlier
date may be set by the liquidator, the last day to file claims shall be no later than
18 months following the order of liquidation. The liquidator need not require persons
claiming cash surrender values or other investment values in life insurance and annuities
to file a claim. All claimants shall have a duty to keep the liquidator informed
of any changes of address.
(c)(1) Notice under subsection (a) of this section to agents of the insurer and to potential
claimants who are policyholders shall include, where applicable, notice that coverage
by state guaranty associations may be available for all or part of policy benefits
in accordance with applicable state guaranty laws.
(2) The liquidator shall promptly provide to the guaranty associations such information
concerning the identities and addresses of such policyholders and their policy coverages
as may be within the liquidator’s possession or control, and otherwise cooperate with
guaranty associations to assist them in providing to such policyholders timely notice
of the guaranty associations’ coverage of policy benefits, including, as applicable,
coverage of claims and continuation or termination of coverages.
(d) If notice is given in accordance with this section, the distribution of assets of
the insurer under this chapter shall be conclusive with respect to all claimants,
whether or not they received notice. (Added 1991, No. 45, § 2, eff. May 29, 1991.)