TITLE 27
Insurance
CHAPTER 27-34
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
assessments.
(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
state.
(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.)
