US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 36
                        INSURANCE GUARANTY ASSOCIATION
    41-3611.  SUBROGATION OF ASSOCIATION TO RIGHTS OF CLAIMANTS -- RECEIVER,
LIQUIDATOR, OR SUCCESSOR BOUND BY ASSOCIATION CLAIM SETTLEMENTS -- PERIODIC
FILING OF STATEMENTS OF PAID CLAIMS WITH RECEIVER OR LIQUIDATOR. (1) Any
person recovering under this act shall be deemed to have assigned his rights
under the policy to the association to the extent of his recovery from the
association. Every insured or claimant seeking the protection of this act
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. In the
case of an insolvent insurer operating on a plan with assessment liability,
payments of claims of the association shall not operate to reduce the
liability of insureds to the receiver, liquidator, or statutory successor for
unpaid assessments.
    (2)  The receiver, liquidator, or statutory successor of an insolvent
insurer shall be bound by settlements of claims made by the association or a
similar organization in another state to the extent such determinations or
settlements satisfy obligations of the association. The receiver shall not be
bound in any way by such determinations or settlements to the extent there
remains a claim against the insolvent insurer. The court having jurisdiction
shall grant such claims priority equal to that which the claimant would have
been entitled in the absence of this act 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.
    (3)  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.