§ 26-31-106 — Duties and powers of association

Wyoming § 26-31-106

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 31: WYOMING INSURANCE GUARANTY ASSOCIATION ACT

Text

(a) Except as provided in subsection (c) of this section,
the association shall:
(i) Be obligated to pay covered claims:
(A) Existing prior to the determination of
insolvency and arising within thirty (30) days after the
determination of insolvency; or
(B) Arising before the policy expiration date if
the claims arise:
(I) Less than thirty (30) days after the
determination of insolvency; or
(II) Before the insured replaces the policy
or causes its cancellation, which replacement or cancellation
occurs within thirty (30) days of the determination of
insolvency.
(ii) Be deemed the insurer to the extent of its
obligation of the covered claims and to that extent has all
rights, duties and obligations of the insolvent insurer as if
the insurer were not insolvent;
(iii) As provided in W.S. 26-31-107 assess insurers
amounts necessary to pay the association's obligations under
paragraph (i) of this subsection and subsection (c) of this
section subsequent to an insolvency, the expenses of handling
covered claims subsequent to an insolvency, the cost of
examinations under W.S. 26-31-112 and any other expenses
authorized by this chapter;
(iv) Investigate claims brought against the
association and adjust, compromise, settle and pay covered
claims to the extent of the association's obligation and deny
all other claims;
(v) Notify any persons as the commissioner directs
under W.S. 26-31-109(a)(iii);
(vi) Handle claims through its employees or through
one (1) or more insurers or other persons designated as
servicing facilities, whose voluntary accepted designation is
subject to the commissioner's approval;
(vii) Reimburse each servicing facility for
association obligations it pays and for expenses incurred while
handling association claims; and
(viii) Pay any other association expenses authorized
by this chapter.
(b) The association may:
(i) Appear in, defend and appeal any action on a
covered claim or on a claim brought against the association;
(ii) Employ or retain any persons necessary to handle
claims and perform other association duties;
(iii) Borrow funds necessary to effect the purposes
of this chapter in accord with the plan of operation;
(iv) Sue or be sued;
(v) Negotiate and become a party to contracts
necessary to carry out the purpose of this chapter;
(vi) Review settlements, releases and judgments to
which the insolvent insurer or its insureds were parties to
determine the extent to which the settlements, releases and
judgments may be properly contested;
(vii) Refund to the member insurers in proportion to
the contribution of each member insurer, that amount by which
the association's assets exceed its liabilities as the board of
directors determines;
(viii) Perform any other acts necessary to carry out
the purpose of this chapter.
(c) Notwithstanding subsection (a) of this section, the
association:
(i) Shall pay the full amount of a covered claim for
benefits under worker's compensation coverage;
(ii) Shall pay not more than seven thousand five
hundred dollars ($7,500.00) per policy for a covered claim for
return of each unearned premium;
(iii) Shall pay not more than three hundred thousand
dollars ($300,000.00) for each covered claim, other than
worker's compensation and return of unearned premium claims;
(iv) Is not obligated to pay a claimant an amount in
excess of the obligation of the insolvent insurer under the
policy or coverage from which the claim arises.
(d) Payment of covered claims by the association pursuant
to this chapter shall be made to the claimant or insured and not
to the insurer or an agent of the insurer on behalf of the
insured.