§ 515b-8

515B.8 Effect of paid claims. 1. 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 theassociation. Every insured or claimant seeking the protection of this chapter shall cooperatewith the association to the same extent as such person would have been required to cooperatewith the insolvent insurer. The association shall have no cause of action against the insuredof the insolvent insurer for any sums it has paid out except causes of action the insolventinsurer would have had if the sums had been paid by the insolvent insurer. 2. The association and any similar entity in another state shall be recognized as claimants in the liquidation of an insolvent insurer for any amounts paid by them on covered claimobligations as determined under this chapter or under similar law in another state, and shallreceive dividends and any other distributions at the priority set forth under the applicableliquidation law. The receiver, liquidator, or statutory successor of an insolvent insurer shall bebound by determinations of covered claim eligibility under this chapter and by

th under the applicableliquidation law. The receiver, liquidator, or statutory successor of an insolvent insurer shall bebound by determinations of covered claim eligibility under this chapter and by settlements ofcovered claims made by the association or a similar organization in another state. The courthaving jurisdiction shall grant such claims priority equal to that which the claimant wouldhave 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 accordedthe same priority as the liquidator’s expenses. 3. 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 anticipatedclaims on the association, which statements shall preserve the rights of the association againstthe assets of the insolvent insurer. [C71, 73, 75, 77, 79, 81, §515B.8]97 Acts, ch 186, §17; 2003 Acts, ch 91, §41 Sat Dec 23 00:48:14 2023 Iowa Code 2024, Section 515B.8 (15, 0)