199Consideration and payment of claims

1. The administrator must—

2. investigate whether a claim made under section 198(3) is justified; and
3. negotiate the amount of a claim with the claimant; and
4. negotiate any claims for interest and, if interest is payable, the rate of interest.

5. The administrator’s decision on whether or not to accept a claim, and the amount of the claim, is final.

6. The administrator must apply the bond as follows:

7. first, to pay the administrator’s fees and expenses incurred in administering the bond:
8. second, to pay compensation to persons whose claims have been accepted by the administrator under subsection (2):
9. third, to pay to the approved surety any surplus after the amounts specified in paragraphs (a) and (b) have been satisfied.

10. If the total claims accepted by an administrator exceed the bond amount paid by an approved surety, the administrator must (after deducting the administrator’s fees and expenses) pay each person whose claim has been accepted the proportion of the bond amount that the person’s claim bears to the total claims accepted.

11. The administrator must not pay a claim until 6 months after the second notice required under section 198 is given.