(a) Any person having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer, which is also a covered claim, shall be required to exhaust first such person’s right under such policy. Any amount payable on a covered claim under this part shall be reduced by the amount of any recovery under such insurance policy.

Terms Used In Tennessee Code 56-12-111

  • Association: means the Tennessee insurance guaranty association created under §. See Tennessee Code 56-12-104
  • Claimant: means any insured making a first-party claim or any person instituting a liability claim. See Tennessee Code 56-12-104
  • Covered claim: means an unpaid claim, including one for unearned premiums, submitted by a claimant, which arises out of and is within the coverage and is subject to the applicable limits of an insurance policy to which this part applies and was issued by an insurer that is insolvent, if the insurer becomes an insolvent insurer after March 31, 1999, and:
    (i) The claimant or insured is a resident of this state when the insured event occurs. See Tennessee Code 56-12-104
  • Insolvent insurer: means an insurer authorized to transact insurance in this state, either when the policy was issued or when the insured event occurred, and against whom a final order of liquidation has been entered after March 31, 1999, with a finding of insolvency by a court of competent jurisdiction in the insurer's state of domicile. See Tennessee Code 56-12-104
  • Person: means any individual, corporation, partnership, governmental entity, association, voluntary organization or any other legal entity. See Tennessee Code 56-12-104
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
(b) Any person having a claim that may be recovered under more than one (1) insurance guaranty association or its equivalent shall seek recovery first from the association of the place of residence of the insured, except that if it is a first party claim for damage to property with a permanent location, the person shall seek recovery first from the association of the location of the property, and if it is a workers’ compensation claim, the person shall seek recovery first from the association of the residence of the claimant. Any recovery under this part shall be reduced by the amount of recovery from any other insurance guaranty association or its equivalent.
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