| 56-12-110. Effect of paid claims - rights
of association - Subrogation - Priorities - Statements. -
(a) Any person recovering
under this part shall be deemed to have assigned such person's rights under
the policy to the association to the extent of such person's recovery from
the association. Every insured or claimant seeking the protection of this
part shall cooperate with the association to the same extent as such person
would have been required to cooperate with the insolvent insurer. The
association shall have no cause of action against the insured of the
insolvent insurer for any sums it has paid out except such causes of action
as the insolvent insurer would have had if such sums had been paid by the
insolvent insurer and except as provided in subsection (b).
(b) The association shall
have the right to recover from the following persons the amount of any
"covered claim" paid on behalf of such person pursuant to this part:
- Any insured whose net worth on December 31 of the year
immediately preceding the date the insurer becomes an insolvent insurer
exceeds twenty-five million dollars ($ 25,000,000 ) and whose liability
obligations to other persons are satisfied in whole or in part by payments
made under this part; and
- Any person who is an affiliate of the insolvent insurer
and whose liability obligations to other persons are satisfied in whole or
in part by payments made under this part.
(c) The association and any
similar organization in another state are claimants in the liquidation of an
insolvent insurer for any amounts paid by them on covered claims obligations
as determined under this part or similar laws in other states and shall
receive dividends and any other distributions at the priority set forth in §
56-9-330. The receiver, liquidator or statutory successor of an insolvent
insurer shall be bound by determinations of covered claim eligibility under
this part and by settlements of claims made by the association or similar
organization in another state. The court having jurisdiction shall grant
such claims priority equal to that which the claimant would have been
entitled in the absence of this part against the assets of the insolvent
insurer. The expenses of the association or similar organization in handling
claims shall be accorded the same priority as the liquidator's expenses for
handling claims.
(d) The association shall
periodically file with the receiver or liquidator of the insolvent insurer
statements of the covered claims paid by the association and estimates of
anticipated claims on the association which shall preserve the rights of the
association against the assets of the insolvent insurer. |
