Vermont § 3618 - Effect of paid claims

§ 3618. Effect of paid claims

• (a) Any person recovering under this subchapter shall be deemed to have assigned his or
  her rights under the policy to the Association to the extent of his or her recovery
  from the Association. Every insured or claimant seeking the protection of this subchapter
  shall cooperate with the Association to the same extent as such person would have
  been required to cooperate with the insolvent insurer. The Association shall have
  no cause of action against the insured of the insolvent insurer for any sums it has
  paid out except such causes of action as the insolvent insurer would have had if such
  sums had been paid by the insolvent insurer. In the case of an insolvent insurer
  operating on a plan with assessment liability, payments of claims of the Association
  shall not operate to reduce the liability of insured’s to the receiver, liquidator,
  or statutory successor for unpaid assessments. (b) 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. The court having jurisdiction shall grant such claims priority
  equal to that which the claimant would have been entitled in the absence of this subchapter
  against the assets of the insolvent insurer. The expenses of the Association or similar
  organization in handling claims shall be accorded the same priority as the liquidator’s
  expenses. (c) The Association shall periodically file with the receiver or liquidator of the insolvent
  insurer statements of the covered claims paid by the Association, the expenses paid
  in the handling of paid or contested covered claims, estimates of anticipated claims
  on the Association, and estimates of the expenses of handling those anticipated claims,
  which shall preserve the rights of the Association against the assets of the insolvent
  insurer. (Added 1969, No. 279 (Adj. Sess.), § 10; amended 1979, No. 18, § 15.)