{"data":{"id":"us-ky/krs-304.36-110","jurisdiction":"us-ky","citation":"KRS 304.36-110","heading":"Effect of paid claims.","body":"(1) Any person recovering under this subtitle shall be deemed to have assigned his\nrights under the policy to the association to the extent of his recovery from the\nassociation. Every insured or claimant seeking the protection of this subtitle shall\ncooperate with the association to the same extent as such person would have been\nrequired to cooperate with the insolvent insurer. The association shall have no cause\nof action against the insured of the insolvent insurer for any sums it has paid out,\nexcept as follows:\n(a) Any insured whose net worth on December 31 of the year next preceding the\ndate the insurer becomes an insolvent insurer exceeds twenty -five million\ndollars ($25,000,000) and whose liability obligations to other persons are\nsatisfied in whole or in part by payments made under this subtitle;\n(b) Any person who is an affiliate of the insolvent insurer and whose liability\nobligations to other persons are satisfied in whole or in part by payments made\nunder this subtitle; and\n(c) No limitation is placed  on the ability of the association to recover from the\nprincipal all claim payments and expenses arising from a surety contract that\nis a covered claim to the association.\n(2) The receiver, liquidator, or statutory successor of an insolvent insurer shall b e\nbound by settlements of covered claims by the association or a similar organization\nin another state. The court having jurisdiction shall grant such claims priority equal\nto that which the claimant would have been entitled in the absence of this subtitle\nagainst the assets of the insolvent insurer. The expenses of the association or similar\norganization in handling claims shall be accorded the same priority as the\nliquidator's expenses.\n(3) The association shall periodically file with the receiver or liquidator of the insolvent\ninsurer statements of the covered claims paid by the association and estimates of\nanticipated claims on the association which shall preserve the rights of the\nassociation against the assets of the insolvent insurer.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29923","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:55Z","sha256":"5505a413d5eccabe44846b397cb685041d47c2bde6b12a873d4931ce0a286247","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.36-100","next":"us-ky/krs-304.36-120"},"notice":"GroundRules: Original legal text. Not legal advice."}