§ 518C.9 — Effect of paid claims

Iowa § 518C.9

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 518C: COUNTY AND STATE MUTUAL INSURANCE GUARANTY ASSOCIATION

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1. A person recovering under a claim made pursuant to this chapter is deemed to have
assigned the person’s rights under the policy to the association to the extent of the person’s
recovery from the association. A claimant seeking the protection of this chapter shall
cooperate with the association to the same extent as such claimant would have been required
to cooperate with the insolvent insurer. The association has no cause of action against a
claimant for any sums the association has paid out.
2. The association or a similar entity in another state shall be recognized as a claimant
in the liquidation of an insolvent insurer for any amounts paid by the association or similar
entity on covered claim obligations as determined under this chapter or under similar law
in another state. The association or similar entity shall receive dividends and any other
distributions at the priority set forth under the applicable liquidation law. The receiver,
liquidator, or statutory successor of an insolvent insurer is bound by determinations of
covered claim eligibility under this chapter and by settlements of covered claims made by
the association or a similar organization in another state. The court having jurisdiction shall
grant such claims priority equal to that which the claimant would have been entitled in
the absence of this chapter 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. Theassociationshallperiodicallyfilewiththereceiver,liquidator,orstatutorysuccessor
oftheinsolventinsurerstatementsofthecoveredclaimspaidbytheassociationandestimates
of anticipated claims on the association, which statements shall preserve the rights of the
association against the assets of the insolvent insurer.