(a)  Any person recovering under this chapter shall be deemed to have assigned any rights under the policy to the association to the extent of his or her recovery from the association. Every insured or claimant seeking the protection of this chapter shall cooperate with the association to the same extent as the person would have been required to cooperate with the insolvent insurer. The association shall have no cause of action against the insured of the insolvent insurer for sums it has paid out except any causes of action as the insolvent insurer would have had if the sums had been paid by the insolvent insurer and except as provided in subsection (b) of this section and § 27-34-11.5. In the case of an insolvent insurer operating on a plan with assessment liability, payments of claims of the association shall not operate to reduce the liability of the insureds to the receiver, liquidator or statutory successor for unpaid assessments.

Terms Used In Rhode Island General Laws 27-34-11

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Association similar to the association: means any guaranty association, security fund or other insolvency mechanism that affords protection similar to that of the association. See Rhode Island General Laws 27-34-5
  • Claimant: means any person instituting a covered claim; provided that no person who is an affiliate of the insolvent insurer may be a claimant;

    (8)  "Commissioner" means the director of the department of business regulation or his or her designee;

    (9)  "Control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with, or corporate office held by, the person. See Rhode Island General Laws 27-34-5

  • Covered claim: means :

    (i)  An unpaid claim, including one for unearned premiums, submitted by a claimant, which arises out of and is within the coverage and subject to the applicable limits of an insurance policy to which this chapter applies if the insurer becomes an insolvent insurer after the effective date of this chapter and the policy was either issued by the insurer or assumed by the insurer in an assumed claims transaction, and:

    (A)  The claimant or insured is a resident of this state at the time of the insured event; provided, that for entities other than an individual, the residence of a claimant, insured or policyholder is the state in which its principal place of business is located at the time of the insured event; or

    (B)  The claim is a first-party claim for damage to property with a permanent location in this state. See Rhode Island General Laws 27-34-5

  • Insolvent insurer: means an insurer licensed to transact insurance in this state either at the time the policy was issued; when the obligation with respect to the covered claim was assumed under an assumed claims transaction; or when the insured event occurred, and against whom a final order of liquidation has been entered after the effective date of this chapter with a finding of insolvency by a court of competent jurisdiction in the insurer's state of domicile;

    (12)  "Insured" means any named insured, any additional insured, any vendor, lessor or any other party identified as an insured under the policy. See Rhode Island General Laws 27-34-5

  • Person: means any individual, aggregation of individuals, corporation, partnership, or other entity;

    (19)  "Qualified financial institution" shall have the same meaning as the term in §?27-1. See Rhode Island General Laws 27-34-5

  • Receiver: means liquidator, rehabilitator, conservator or ancillary receiver, as the context requires. See Rhode Island General Laws 27-34-5

(b)  The association shall have the right to recover from a person who is an affiliate of the insolvent insurer all amounts paid by the association on behalf of that person pursuant to the chapter, whether for indemnity, defense or otherwise.

(c)  The receiver, liquidator, or statutory successor of an insolvent insurer shall be granted the utmost deference with regard to settlements of covered claims by the fund or a similar organization in another state.

(d)  The association and any association similar to the association in another state shall be entitled to file a claim in the liquidation of an insolvent insurer for any amounts paid by them on covered claim obligations as determined under this chapter or similar laws in other states and shall receive dividends and other distributions at the priority set forth in § 27-14.3-46.

(e)  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.

History of Section.
P.L. 1988, ch. 407, § 2; P.L. 1999, ch. 498, § 1; P.L. 2010, ch. 91, § 1; P.L. 2010, ch. 117, § 1.