§ 518c-9

518C.9 Effect of paid claims. 1. A person recovering under a claim made pursuant to this chapter is deemed to have assigned the person’s rights under the policy to the association to the extent of the person’srecovery from the association. A claimant seeking the protection of this chapter shall cooperate with the association to the same extent as such claimant would have been requiredto cooperate with the insolvent insurer. The association has no cause of action against aclaimant for any sums the association has paid out. 2. The association or a similar entity in another state shall be recognized as a claimant in the liquidation of an insolvent insurer for any amounts paid by the association or similarentity on covered claim obligations as determined under this chapter or under similar lawin another state. The association or similar entity shall receive dividends and any otherdistributions at the priority set forth under the applicable liquidation law. The receiver,liquidator, or statutory successor of an insolvent insurer is bound by determinations ofcovered claim eligibility under this chapter and by settlements of covered claims made bythe association or a similar organization

utory successor of an insolvent insurer is bound by determinations ofcovered claim eligibility under this chapter and by settlements of covered claims made bythe association or a similar organization in another state. The court having jurisdiction shallgrant such claims priority equal to that which the claimant would have been entitled inthe absence of this chapter against the assets of the insolvent insurer. The expenses of theassociation or similar organization in handling claims shall be accorded the same priorityas the liquidator’s expenses. 3. The association shall periodically file with the receiver, liquidator, or statutory successor of the insolvent insurer statements of the covered claims paid by the association and estimatesof anticipated claims on the association, which statements shall preserve the rights of theassociation against the assets of the insolvent insurer. 2000 Acts, ch 1035, §9 Sat Dec 23 00:51:34 2023 Iowa Code 2024, Section 518C.9 (16, 0)