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- Alaska Statutes.
- Title 21. Insurance
- Chapter 80. Alaska Insurance Guaranty Association Act
- Section 90. Effect of Paid Claims.
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. Duties and Powers of the Director.
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. Prohibited Claims.
AS 21.80.090. Effect of Paid Claims.
- (a) A person recovering under this chapter is considered to have assigned the person's rights under the policy to the
association to the extent of the 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 does not have a cause of action against the insured of the
insolvent insurer for any sums the association has paid out except a cause of action the insolvent insurer would have
had if the sums had been paid by the insolvent insurer and except as provided under (b) of this section. In the case of
an insolvent insurer operating on a plan with assessment liability, payments of claims of the association do not
operate to reduce the liability of insured to the receiver, liquidator, or statutory successor for unpaid assessments.
- (b) The association or a similar organization in another state shall be recognized as a claimant in the liquidation of an
insolvent insurer for amounts paid by the association or the similar organization on covered claims as determined by
this chapter or a similar law of another state and shall receive distributions as provided under AS 21.78.260 or a similar law of another state. The
receiver, liquidator, or statutory successor of an insolvent insurer shall be bound by settlements of covered claims by
the association or a similar organization in another state to the extent the settlement satisfies obligations of the
association. The receiver may not be bound in any way by a settlement of covered claims to the extent there remains a
claim that exceeds the claims limit imposed under AS 21.80.060
. The court having jurisdiction shall grant these claims priority against the assets of the insolvent insurer equal to
the priority that the claimant would have been entitled to in the absence of this chapter. The expenses of the
association or similar organization in handling claims shall be accorded the same priority as the liquidator's
- (c) 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.
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