Section 10: Examination and regulation by commissioner
[ Text of section effective until April 9, 2025. For text effective April 9, 2025, see below.]
Section 10. The Fund shall be deemed an insurer for purposes of examination and regulation by the commissioner.
Chapter 175D: Section 10. Recovery of claims from Fund; assignment of rights; cooperation; cause of action against insured; recovery from affiliate of insolvent member insurer; filing of claims in liquidation; periodic statements and estimates of claims; settlements
[ Text of section as recodified by 2024, 389, Sec. 3 effective April 9, 2025. For text effective until April 9, 2025, see above.]
Section 10. (a) Any person recovering under this chapter shall be deemed to have assigned any rights under the policy to the Fund with respect to their recovery from the Fund but shall retain the right to recover from the liquidator of the insolvent member insurer any amount of the claim covered by the policy but not paid by the Fund. Every insured or claimant seeking the protection of this chapter shall cooperate with the Fund to the same extent as the person insured or claimant would have been required to cooperate with the insolvent member insurer. The Fund shall have no cause of action against the insured of the insolvent member insurer for sums it has paid out except any causes of action as the insolvent member insurer would have had if the sums had been paid by the insolvent member insurer, including, but not limited to, large deductible reimbursements provided in the policy, and except as provided in subsection (b) and in section 12.
(b) The Fund may recover from any person who is an affiliate of the insolvent member insurer all amounts paid by the Fund on behalf of that person pursuant to this chapter, whether for indemnity, defense or otherwise.
(c) The Fund and any association similar to the Fund in another state may file a claim in the liquidation of an insolvent member insurer for any amounts paid by the Fund or association similar to the fund on covered claim obligations as determined under this chapter or similar laws in other states and shall receive dividends and other distributions at the priority of distribution set forth in section 180F of chapter 175.
(d) The Fund shall periodically file with the receiver or liquidator of the insolvent member insurer statements of the covered claims paid by the Fund and estimates of anticipated claims on the Fund, which shall preserve the rights of the Fund against the assets of the insolvent member insurer in the commonwealth and other states and jurisdictions.
(e) The receiver, liquidator or statutory successor of an insolvent member insurer shall be bound by settlements of claims by the Fund and shall grant, against the assets of the insolvent member insurer, priority equal to that which the claimant would have been entitled in the absence of this chapter.