State Codes and Statutes
Statutes > Utah > Title-31a > Chapter-28 > 31a-28-21331A-28-213. Miscellaneous provisions.
(1) (a) Any person who has a claim against an insurer, whether or not the insurer is amember insurer, under any provision in an insurance policy, other than a policy of an insolventinsurer that is also a covered claim, is required to first exhaust that person's right under thatperson's policy.
(b) Any amount payable on a covered claim under this part under an insurance policy isreduced by the amount of any recovery under the insurance policy described in Subsection (1)(a).
(c) (i) Except as provided in Subsection (1)(c)(ii) a person having a claim that may berecovered under more than one insurance guaranty association or its equivalent shall first seekrecovery from the association of the place of residence of the insured.
(ii) If the person's claim is:
(A) a first-party claim for damage to property with a permanent location, the person shallseek recovery first from the association of the location of the property; and
(B) a workers' compensation claim, the person shall seek recovery first from theassociation of the residence of the claimant.
(iii) Any recovery under this part shall be reduced by the amount of recovery from anyother insurance guaranty association or its equivalent.
(2) This part may not be construed to reduce the liability for unpaid assessments of theinsureds of an impaired or insolvent insurer operating under a plan with assessment liability.
(3) (a) Records shall be kept of all negotiations and meetings in which the association orits representatives are involved to discuss the activities of the association in carrying out theassociation's powers and duties under Section 31A-28-207. Records of these negotiations ormeetings shall be made public only:
(i) upon the termination of a liquidation, rehabilitation, or conservation proceedinginvolving the insolvent insurer;
(ii) the termination of the insolvency of the insurer; or
(iii) the order of a court of competent jurisdiction.
(b) This Subsection (3) does not limit the duty of the association to render a report of itsactivities under Section 31A-28-214.
(4) For the purpose of carrying out its obligations under this part, the association isconsidered to be a creditor of the insolvent insurer, except to the extent of any amounts theassociation is entitled as subrogee under Section 31A-28-207.
(5) (a) Before the termination of any liquidation, rehabilitation, or conservationproceeding, the court may take into consideration the contributions of the respective parties,including:
(i) the association;
(ii) the shareholders;
(iii) the policyowners of the insolvent insurer; and
(iv) any other party with a bona fide interest, in making an equitable distribution of theownership rights of the insolvent insurer.
(b) In making the determination described in Subsection (5)(a), the court shall considerthe welfare of the policyholders of the continuing or successor insurer.
(c) A distribution to stockholders, if any, of an insolvent insurer may not be made untilthe total amount of valid claims of the association with interest on those claims for fundsexpended in carrying out its powers and duties under Section 31A-28-207 regarding this insurer
have been fully recovered by the association.
(6) A rehabilitator, liquidator, or conservator appointed under any section of this partmay recover on behalf of the insurer for excessive distributions paid to affiliates, pursuant toSection 31A-27a-502.
Amended by Chapter 309, 2007 General Session
