NY Ins L § 7433 (2021)
2021 New York Laws ISC - Insurance Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers 7433 - Proof and Allowance of Claims.

§  7433. Proof and allowance of claims. (a) (1) A proof of claim shall consist of a written statement subscribed and affirmed by  the  claimant as  true  under  the  penalties of perjury, setting forth the claim, the consideration therefor, any securities held therefor, any payments  made thereon,  and  that  the sum claimed is justly owing from the insurer to the claimant.  (2) If a  claim  is  founded  upon  an  instrument  in  writing,  such instrument,  unless  lost or destroyed, shall be filed with the proof of claim.  After the filing of such instrument the  superintendent  may  in his discretion permit the claimant to retain such instrument until final disposition  of  the  claim.  If such instrument is lost or destroyed, a statement of such  fact  and  of  the  circumstances  of  such  loss  or destruction shall be filed under oath with the claim.  (b)  (1) Upon the liquidation of any domestic insurer or United States branch which has issued policies insuring  the  lives  of  persons,  the superintendent  shall,  within  thirty  days  after the last day set for filing claims, make a list of the persons who have not filed  proofs  of claim  with him, to whom it appears to his entire satisfaction, from the records of the company, that there are owing amounts  on  such  policies and  he  shall set opposite the name of each person such amount so owing to such person. Each person whose name shall appear upon such list shall be deemed to have duly filed, prior to the last day set for  the  filing of claims, a proof of claim for the amount set opposite his name.  (2)  Upon  the  liquidation  of  any domestic insurer or United States branch which has issued property/casualty policies,  the  superintendent shall, within thirty days after the last day set for filing claims, make a list of all persons whose name appears on the books and records of the company  as  policyholders  or claimants. Each person whose name appears upon such list shall be deemed to have duly filed a proof of claim prior to the last day set for the filing of claims.  (c) No contingent claim shall share in a distribution of assets of  an insurer adjudicated to be insolvent by an order made pursuant to section seven  thousand  four hundred thirty-two of this article except that any such claim shall be considered if properly presented and may be  allowed to share if:  (1)  it becomes absolute against the insurer on or before the last day fixed for filing of proofs of claim, or  (2) there is a surplus and the  liquidation  is  thereafter  conducted upon the basis that such insurer is solvent.  (d)  (1) Where a liquidation, rehabilitation or conservation order has been entered in a proceeding against an insurer under this article,  any person  who  has  a  cause  of action against an insured of such insurer under a liability insurance policy issued by such  insurer,  shall  have the  right  to  file a claim in the proceeding, even though the claim is contingent.  (2) The claim may be allowed:  (A) if it may be reasonably inferred from  the  proof  presented  that such person would be able to obtain a judgment upon such cause of action against such insured;  (B)  if such person shall furnish suitable proof, unless the court for good cause shown shall otherwise direct, that no  further  valid  claims against such insurer arising out of his cause of action other than those already presented can be made; and  (C)  if  the  total liability of such insurer to all claimants arising out of the same act of its insured shall be no greater  than  its  total liability  would  be  were  it  not  in  liquidation,  rehabilitation or conservation.  (3) No judgment against such an insured taken after the  date  of  the entry  of the liquidation, rehabilitation or conservation order shall be considered in the proceedings as evidence of liability or of the  amount of  damages. No judgment against an insured taken by default, inquest or collusion  prior to the entry of a liquidation order shall be considered as conclusive evidence in the proceeding either of the liability of such insured to such person upon such cause of action or  of  the  amount  of damages to which such person is therein entitled.  (e)  Debts  owing to a state, county, district or municipality, or any subdivision thereof, as a penalty or forfeiture, shall  not  be  allowed except  for  the  amount  of  the  pecuniary  loss sustained by the act, transaction or proceeding out of which the penalty or forfeiture  arose, with  reasonable  and actual costs occasioned thereby, and such interest as may have accrued thereon according to law.  (f) No claim of any secured claimant shall be allowed at a sum greater than the difference between the value of the claim without security  and the value of the security itself as of the date of entry of the order of liquidation  or  such other date set by the court for fixation of rights and liabilities as provided in section seven thousand four hundred  five of this article, unless the claimant shall surrender his security to the superintendent  in  which  event  the claim shall be allowed in the full amount of its value.