1999 Minnesota Statutes

     60C.11 Effect of paid claims. 

    Subdivision 1.  The rights under the policy of a person 
 recovering under Laws 1971, chapter 145 shall be deemed to have 
 been assigned by the person to the association to the extent of 
 the recovery. 

    Subd. 2.  Every insured or claimant seeking the protection 
 of Laws 1971, chapter 145 shall cooperate with the association 
 to the same extent as the insured would have been required to 
 cooperate with the insurer.  

    Subd. 3.  The association has no cause of action against 
 the insured of the insurer for any sums it has paid out except 
 the causes of action the insurer would have had if the sums had 
 been paid by the insurer.  

    Subd. 4.  In the case of an insurer operating on a plan 
 with assessment liability, payments of claims of the association 
 do not operate to reduce the liability of insureds to the 
 receiver, liquidator or statutory successor for unpaid 
 assessments.  

    Subd. 5.  The expenses of the association or similar 
 organization in handling claims are accorded the same priority 
 as the liquidator's expenses.  The association and a similar 
 organization in another state must be recognized as claimants in 
 the liquidation of an insolvent insurer for amounts paid by them 
 on covered claims as determined under this chapter or similar 
 laws in other states and must receive dividends and other 
 distributions at the priority set forth in chapter 60B.  The 
 receiver, liquidator, or statutory successor of an insolvent 
 insurer is bound by determinations of covered claim eligibility 
 under this chapter and by settlements of claims made by the 
 association or a similar organization in another state.  The 
 court having jurisdiction shall grant the claims priority equal 
 to that which the claimant would have been entitled against the 
 assets of the insolvent insurer in the absence of this chapter. 

    Subd. 6.  The association shall periodically file with the 
 receiver or liquidator of the insurer statements of the covered 
 claims paid by the association and estimates of anticipated 
 claims against the association which shall preserve the rights 
 of the association against the assets of the insurer.  

    Subd. 7.  The association may recover the amount of any 
 covered claim paid, resulting from insolvencies which occur 
 after July 31, 1996, on behalf of an insured who has a net worth 
 of $25,000,000 as provided in section 60C.09, subdivision 2, 
 clause (3), on December 31 of the year immediately preceding the 
 date the insurer becomes an insolvent insurer and whose 
 liability obligations to other persons are satisfied in whole or 
 in part by payments made under this chapter. 

    HIST: 1971 c 145 s 11; 1986 c 444; 1996 c 446 art 2 s 8; 1997 
 c 52 s 8