Advanced Search

§27-34-11  Effect Of Paid Claims. –

Published: 2015

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.



Rhode Island Property And Casualty Insurance Guaranty Association

SECTION 27-34-11

   § 27-34-11  Effect of paid claims. –

(a) Any person recovering under this chapter shall be deemed to have assigned

any rights under the policy to the association to the extent of his or her

recovery from the association. Every insured or claimant seeking the protection

of this chapter shall cooperate with the association to the same extent as the

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 sums it has paid out except any causes of action as the insolvent

insurer would have had if the sums had been paid by the insolvent insurer and

except as provided in subsection (b) of this section and § 27-34-11.5. 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 the insureds to the receiver, liquidator or statutory successor for unpaid


   (b) The association shall have the right to recover from a

person who is an affiliate of the insolvent insurer all amounts paid by the

association on behalf of that person pursuant to the chapter, whether for

indemnity, defense or otherwise.

   (c) The receiver, liquidator, or statutory successor of an

insolvent insurer shall be granted the utmost deference with regard to

settlements of covered claims by the fund or a similar organization in another


   (d) The association and any association similar to the

association in another state shall be entitled to file a claim in the

liquidation of an insolvent insurer for any amounts paid by them on covered

claim obligations as determined under this chapter or similar laws in other

states and shall receive dividends and other distributions at the priority set

forth in § 27-14.3-46.

   (e) 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.

History of Section.

(P.L. 1988, ch. 407, § 2; P.L. 1999, ch. 498, § 1; P.L. 2010, ch. 91,

§ 1; P.L. 2010, ch. 117, § 1.)