646.13 Special duties and powers of the fund related to loss claims.

347 words·~2 min read·/wi/chapter-646/646-13

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Duties. The fund shall:

(a)Establish procedures and acceptable forms of proof for eligible claims, which shall correspond as closely as practicable with the corresponding rules under ch. 645 .

(b)Stand in the position of the insurer in the investigation, compromise, settlement, denial, and payment of claims under s. 646.31 and the defense of 3rd-party claims against insureds, subject to the limitations of s. 645.43 . The fund shall consult and cooperate with the liquidator in carrying out these duties.

(2)Powers. The fund may:

(a)Review settlements, releases and judgments to which the insurer or its insureds were parties to determine the extent to which they may be properly contested.

(b)Exercise with respect to loss claims the powers that the liquidator has with respect to other claims under ch. 645 or a substantially similar law in the state of domicile of the insolvent insurer.

(c)With respect to any action against an insurer which is in liquidation, exercise the powers of the liquidator under s. 645.49

(1)or a substantially similar law in the state of domicile of the insolvent insurer.

(d)Have standing to appear in any liquidation proceedings in this state involving an insurer in liquidation, and have authority to appear or intervene before a court or agency of any other state having jurisdiction over an insolvent insurer, in accordance with the laws of that state, with respect to which the fund is or may become obligated or that has jurisdiction over any person or property against which the fund may have subrogation or other rights. Standing shall extend to all matters germane to the powers and duties of the fund, including proposals for reinsuring, modifying, or guaranteeing the policies or contracts of the insolvent insurer and the determination of the policies or contracts and contractual obligations.

(e)Pursue salvage and subrogation with respect to paid covered claim obligations and retain any amounts recovered.

(f)Appoint and direct legal counsel for the defense of covered claims under insurance policies.