Section 1394.2 Of Article 8. Other Enforcement Procedures From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 8.
1394.2
. Notwithstanding any other provision of law, in any
involuntary dissolution of a health care service plan as provided for
in Section 1394.1, or other insolvency proceeding involving a health
care service plan, the following expenses and claims have priority
in the following order:
(a) First, administrative expenses allowed by the superior court
and any fees and charges assessed against the estate of the dissolved
health care service plan in conjunction with the dissolution of the
estate.
(b) Second, taxes due the State of California.
(c) Third, claims having preference by the laws of the United
States and by the laws of this state.
(d) Fourth, claims of health care service plan subscribers and
enrollees for reimbursement for services rendered by noncontracting
providers. Upon proper showing, the superior court may make an order
relieving subscribers and enrollees from liability or stay any
proceeding to secure payment for any services rendered by a
noncontracting provider upon payment, in whole or in part, of the
claim or claims of those noncontracting providers.
(e) Fifth, claims of health care service plan group contract
holders for reimbursement for services rendered by noncontracting
providers to subscribers and enrollees under the group contract.
(f) Sixth, any and all claims, including all officers' and
directors' claims for indemnity, arising against the estate of the
dissolved health care service plan.