§ 27-6-8-10 — Effect of paid claims

(Effect of Paid Claims) (a) Any person
recovering under this chapter shall be 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. 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 any sums
it has paid out except such causes of action as the insolvent insurer
would have had if such sums had been paid by the insolvent insurer. 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 insureds to the receiver, liquidator, or statutory
successor for unpaid assessments previously made and no assessment
shall be thereafter made for the purpose of reimbursing the association.
(b) The receiver, liquidator, or statutory successor of an insolvent
insurer shall be bound by settlements of covered claims by the
association or a similar organization in another state functioning
pursuant to IC 27-6-8-8(d). 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.
(c) 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.
(d) The association shall have a right to recover from the insurance
producer of record any part of the paid claim for unearned premium
that represents unearned commission to the insurance producer.
Formerly: Acts 1971, P.L.390, SEC.1. As amended by Acts
1977, P.L.281, SEC.7; P.L.178-2003, SEC.42.