2025 Session Last amended: 1986 session

§ 60B.61 — Subordination of Claims for Noncooperation

Plain-Language Summary

This section penalizes ancillary receivers in other states who do not cooperate with the Minnesota liquidator. If an out-of-state ancillary receiver fails to transfer assets to Minnesota, the claims filed in that state are moved to a lower priority class.

60B.61 SUBORDINATION OF CLAIMS FOR NONCOOPERATION.

If an ancillary receiver in another state or foreign country, whether or not called by that name, fails to transfer to the domiciliary liquidator in this state any assets within the receiver’s control other than special deposits, diminished only by the expenses of the ancillary receivership, if any, the claims filed in the ancillary receivership, other than special deposit claims or secured claims, shall be placed in the class of claims under section 60B.44, subdivision 9.

History:

1969 c 708 s 61; 1986 c 444

History: History: 1969 c 708 s 61; 1986 c 444

Practical Notes

This provision encourages interstate cooperation in insurance company liquidations. Ancillary receivers who refuse to transfer assets risk having their state’s claimants receive lower priority in the overall distribution.

Source: Minnesota Office of the Revisor of Statutes