The order of distribution of claims from the insurer's estate is set forth in detail in Article V of the Insurance Department Act of 1921 at 40 P.S. 22144. Briefly the classes are:
A Administrative expenses
B Claims for policy benefits
C Federal government claims
D Certain employee claims
E General creditor claims
F State and local government claims
G Late filed claims
H Surplus or contribution note claims
I Shareholder/owner claims.
2 Priority Class A - Administrative Expenses Administrative expenses include both the Guaranty Associations’ expenses related to administering the claims of the companies in liquidation and the Liquidator’s expenses. As shown, the Liquidator’s expenses have been bracketed to indicate they have been paid and the net assets available were reduced by that amount. The net difference in this priority class, if any, represents administrative expenses incurred by the Guaranty Associations
3 Estimated Surplus (Deficit)
Amount reflects June 30, 2006 assets in excess of those available at December 31, 2005. The additional amount of assets were distributed after June 30, 2006 for Liquidator Administrative Expenses and additional Priority E claim payments. The Class E Claim of $25,302,226 was calculated based on the December 31, 2005 court accounting filed with the discharged petition. The actual claim was much larger but the amount shown equals the remaining December 31, 2005 net assets of higher priority claims. Although the Class E Claim amount is shown at $25,302,226 the Court approved discharged petition stipulated that any assets remaining after liquidator administrative expenses were to be paid to the E Claim Level.