A. Any person recovering under Chapter 59A, Article 43 NMSA 1978 shall be deemed to have assigned his rights under the policy to the association to the extent of his recovery from the association. Every insured or claimant seeking the protection of that article shall cooperate with the association to the same extent as he 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 do not operate to reduce the liability of the insured to the receiver, liquidator or statutory successor for unpaid assessments.
B. The receiver, liquidator or statutory successor of an insolvent insurer is bound by settlements of covered claims by the association or a similar organization in another state. The association may make application to the court for reimbursement of such claims and expenses and upon proper application the court shall order appropriate disbursements to be made in accordance with the provisions of Chapter 59A, Article 41 NMSA 1978 in effect at the time the application is acted upon by the court.
C. The association shall, within the time set by the receivership court, file with the receiver or liquidator of the insolvent insurer, statements of the covered claims paid by the association and estimates of anticipated claims on the association.
History: Laws 1984, ch. 127, § 776; 1993, ch. 320, § 101.
The 1993 amendment, effective June 18, 1993, in Subsection A, substituted "Chapter 59A, Article 43 NMSA 1978" for "this article" and made a stylistic change; and in Subsection B, deleted the former second sentence, relating to the priority of claims and expenses of the association in another state, and added the language beginning "in accordance with" at the end of the subsection.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 44 Am. Jur. 2d Insurance § 1820.
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