2006 Utah Code - 31A-27-326 — Reinsurer\'s liability -- Paid claims.

     31A-27-326.   Reinsurer's liability -- Paid claims.
     (1) (a) The amount recoverable by the liquidator from a reinsurer may not be reduced as a result of delinquency proceedings, regardless of any provision in the reinsurance contract or other agreement.
     (b) Payment made directly to an insured or other creditor does not diminish the reinsurer's obligation to the insurer's estate, except when:
     (i) the reinsurance contract provides for direct coverage of a named insured; and
     (ii) the payment was made in discharge of the obligation described in Subsection (1)(b)(i).
     (2) (a) A claim shall be considered a paid claim when the claim is:
     (i) recommended to the court by the liquidator; and
     (ii) approved by the court.
     (b) A reinsurer shall be billed by the liquidator on a paid claim for amounts recovered under reinsurance contracts.
     (c) If a reinsurer does not pay the amount billed under Subsection (2)(b) within 180 days after the reinsurer has received the billing, interest on the unpaid billed amount will begin to accrue at the statutory legal rate provided in Subsection 15-1-1(2), except that all or a portion of the interest may be waived as part of an arbitration proceeding.

Amended by Chapter 105, 2004 General Session