496
Opinion of the Court
Respondent argued that the Ohio priority scheme, rather than the federal priority statute, governs the priority of claims of the United States because it falls within the anti-this section. Every claim in each class shall be paid in full or adequate funds retained for such payment before the members of the next class receive any payment. No subclasses shall be established within any class. The order of distribution of claims shall be:
"(A) Class 1. The costs and expenses of administration, including but not limited to the following:
"(1) The actual and necessary costs of preserving or recovering the assets of the insurer;
"(2) Compensation for all services rendered in the liquidation; "(3) Any necessary filing fees; "(4) The fees and mileage payable to witnesses; "(5) Reasonable attorney's fees; "(6) The reasonable expenses of a guaranty association or foreign guaranty association in handling claims.
"(B) Class 2. Debts due to employees for services performed to the extent that they do not exceed one thousand dollars and represent payment for services performed within one year before the filing of the complaint for liquidation. Officers and directors shall not be entitled to the benefit of this priority. Such priority shall be in lieu of any other similar priority that may be authorized by law as to wages or compensation of employees.
"(C) Class 3. All claims under policies for losses incurred, including third party claims, all claims against the insurer for liability for bodily injury or for injury to or destruction of tangible property that are not under policies, and all claims of a guaranty association or foreign guaranty association. All claims under life insurance and annuity policies, whether for death proceeds, annuity proceeds, or investment values, shall be treated as loss claims. That portion of any loss, indemnification for which is provided by other benefits or advantages recovered by the claimant, shall not be included in this class, other than benefits or advantages recovered or recoverable in discharge of familial obligations of support or by way of succession at death or as proceeds of life insurance, or as gratuities. No payment by an employer to an employee shall be treated as a gratuity. Claims under nonassessable policies for unearned premium or other premium refunds.
"(D) Class 4. Claims of general creditors. "(E) Class 5. Claims of the federal or any state or local government. Claims, including those of any governmental body for a penalty or forfeit-
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