§ 26.1-42.1-08 — Effect of paid claims

North Dakota § 26.1-42.1-08

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-42.1: Insurance Guaranty Association

Text

1. Any person recovering under this chapter is deemed to have assigned that person's
rights under the policy to the association to the extent of recovery from the association.
Every insured or claimant seeking the protection of this chapter shall cooperate with
the association to the same extent as that insured or claimant would have been
required to cooperate with the insolvent insurer. The association does not have a claim
for relief against the insured of the insolvent insurer for any sums the association paid
out except for claims for relief the insolvent insurer would have had if the sums had
been paid by the insolvent insurer and except as provided in subsection 2. In the case
of an insolvent insurer operating on a plan with assessment liability, payments of
claims of the association do not reduce the liability of the insureds to the receiver,
liquidator, or statutory successor for unpaid assessments.
2. The association may recover from the following persons the amount of any covered
claim paid on behalf of that person pursuant to this chapter:
a. Any insured whose net worth on December thirty-first of the year immediately
preceding the date the insurer becomes an insolvent insurer exceeds twenty-five
million dollars and whose liability obligations to other persons are satisfied in
whole or in part by payments made under this chapter;
b. Any person who is an affiliate of the insolvent insurer and whose liability
obligations to other persons are satisfied in whole or in part by payments made
under this chapter; and
c. Any insured who is not a resident of this state at the time of the insured event,
except for first-party covered claims for property damage to an insured's property
that is permanently located in this state.
3. The association and any similar organization in another state are recognized as
claimants in the liquidation of an insolvent insurer for any amounts paid by the
association or similar organization on covered claims obligations as determined under
this chapter or similar laws in other states and receive dividends and any other
distributions at the priority set forth in section 26.1-06.1-41. 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 claims made by the
association or a similar organization in another state. The court with jurisdiction shall
grant these 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.
4. 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 preserve the rights of the association
against the assets of the insolvent insurer.