Page:United States Statutes at Large Volume 87.djvu/333

 87 STAT. ]

PUBLIC LAW 93-89-AUG. 14, 1973

301

(3) revoke the designation of any servicing facility if he finds claims are being handled unsatisfactorily. (c) All final orders or decisions of the Commissioner made nnder this Act shall be subject to review in accordance with section 11 of the District of Columbia Administrative Procedures Act (D.C. Code, sec. 1 - 1 5 1 0).

82 Stat. 1209;

SEC. 110, (a) Any person recovering under this title shall be deemed ^"^R^^hVs^^al'si to have assigned his rights under the policy to the Association to the ment. extent of his recovery from the Association. Every insured or claimant seeking the protection of this title 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 insured's liability 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 title against the assets of the insolvent insurer. (c) The Association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the Association which shall preserve the rights of the Association against the assets of the insolvent insurer. SEC. 111. (a) Any person having a claim against an insurer under any provision in an insurance policy, other than a policy of an insolvent insurer which is also a covered claim, shall be required to exhaust first his right under such policy. Any amount payal3le on a covered claim under this title shall be reduced by the amount of any recovery under such insurance policy. (b) Any person having a claim which may be recovered under more than one 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, he shall seek recovery first from the association of the location of the property, and if it is a workmen's compensation claim, he shall seek recovery first from the association of the residence of the claimant. Any recovery under this title shall be reduced by the amount of recovery from any other insurance guaranty association or its equivalent. SEC. 112. (a) To aid in the detection and prevention of insurer Insurer insolincies, preveninsolvencies— (1) it shall be the duty of the Board, upon majority vote, to notify the Commissioner of any information indicating any member insurer may be insolvent or in a financial condition hazardous to the policyholders or the public; and (2) the Board may, upon majority vote, request that the Commissioner order an examination of any member insurer which the Board in good faith believes may be in a financial condition hazardous to the policyholders or the public. (b) An examination may be conducted, under this section, as a National Association of Insurance Commissioner examination or may be conducted by such person as the Commissioner designates. The cost of such examination shall be paid hj the Association and the examina-

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