§ 10-3-539 — Claims of surety

Colorado § 10-3-539

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Regulation of Insurance Companies

Text

Whenever a creditor whose claim against an
insurer is secured, in whole or in part, by the undertaking of another person fails to
prove and file that claim, such other person may do so in the creditor's name and
shall be subrogated to the rights of the creditor, whether the claim has been filed
by the creditor or by the other person in the creditor's name, to the extent that the
other person discharges the undertaking; except that, in the absence of an
agreement with the creditor to the contrary, the other person shall not be entitled
to any distribution until the amount paid to the creditor on the undertaking plus the
distributions paid on the claim from the insurer's estate to the creditor equals the
amount of the entire claim of the creditor. Any excess received by the creditor shall
be held by the creditor in trust for such other person. The term other person, as
used in this section, does not apply to a guaranty association or foreign guaranty
association.

Legislative History

Source: L. 92: Entire part R&RE, p. 1474, � 14, effective July 1.