§36-2010. Payment of covered claims - Recovery from certain persons
386 words·~2 min read·
/ok/title-36-insurance/36-2010·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
- Priority of claims.
A. Any person recovering under the Oklahoma Property and Casualty Insurance Guaranty Association Act shall be deemed to have assigned the rights of the person under the policy to the Oklahoma Property and Casualty Insurance Guaranty Association to the extent of the recovery of the person from the Association. Every insurer or claimant seeking the protection of this act shall cooperate with the Association to the same extent as the person would have been required to cooperate with the insolvent insurer.
In the case of an insolvent insurer operating on a plan with assessment liability, payment of covered claims by the Association shall not operate to reduce the liability of insureds to the receiver, liquidator or statutory successor for unpaid assessments.
B. The Association shall have the right to recover from any person who is an affiliate of the insolvent insurer all amounts paid by the Association on behalf of that person pursuant to the provisions of the Oklahoma Property and Casualty Insurance Guaranty Association Act, whether for indemnity, defense or otherwise.
C. 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. The Association shall have a priority over general creditors of the insolvent insurer against the assets of the insolvent insurer equal to the amount of covered claims paid by the Association pursuant to the Oklahoma Property and Casualty Insurance Guaranty Association Act. No other priority under the provisions of this section unless the laws of such other state grant a similar priority to the Association, in which case such other association or similar organization of another state shall have a priority against the assets of the insolvent insurer equal to that given to the Association by such other state.
D. 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.
Added by Laws 1980, c. 362, § 10, emerg. eff. June 27, 1980. Amended by Laws 1986, c. 251, § 33, eff. Nov. 1, 1986; Laws 2010, c. 159, § 9, eff. Nov. 1, 2010.