KRS 304.33-410: Claims of surety.

Whenever a creditor whose claim against an insurer is secured in whole or in part by the

undertaking of another person fails to prove and file that claim, the other person may do

so in the creditor's name, and shall be subrogated to the rights of the credi tor, whether the

claim has been filed by the creditor or by the other person in the creditor's name, to the

extent that he discharges the undertaking. In the absence of an agreement with the

creditor to the contrary, the other person shall not be entitled to any dividend until the

amount paid to the creditor on the undertaking plus the dividends paid on the claim from

the insurer's estate to the creditor equals the amount of the entire claim of the creditor.

Any excess received by the creditor shall be held by him in trust for such other person.