KRS 304.36-120: Nonduplication of recovery.

(1) Any person having a claim against an insurer under any provision in an insurance

policy other than the policy of an insolvent insurer which is also a covered claim

shall be required to exhaust first his right under the policy. Any amount payable on

a covered claim under this subtitle shall be reduced by the amount of recovery under

the insurance policy. Any provision in an insurance policy includes, but is not

limited to, the following coverages: basic reparation benefits under KRS Chapter

304, Subtitle 39; uninsured motorist; underinsured motorist; workers'

compensation; and health care.

(2) Any person having a claim which 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, from the association of the

location of the property, and if it is a workers' compensation claim, from the

association of t he residence of the claimant. Any recovery under this subtitle shall

be reduced by the amount of the recovery from any other insurance guaranty

association or its equivalent.

(3) The guaranty association shall receive the benefit of any reinsurance contrac t or

treaties entered into by the insolvent insurer which cover any of the liabilities

incurred by the insolvent insurer with respect to covered claims.