Kentucky Statutes 304.36-120 – Nonduplication of recovery
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(1) Any person having a claim against an insurer under any provision in an insurance policy other than the policy of an insolvent insurer which is also a covered claim shall be required to exhaust first his right under the policy. Any amount payable on a covered claim under this subtitle shall be reduced by the amount of recovery under the insurance policy. Any provision in an insurance policy includes, but is not limited to, the following coverages: basic reparation benefits under KRS Chapter
304, Subtitle 39; uninsured motorist; underinsured motorist; workers’ compensation; and health care.
(2) Any person having a claim which may be recovered under more than one (1) 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, from the association of the location of the property, and if it is a workers’ compensation claim, from the association of the residence of the claimant. Any recovery under this subtitle shall be reduced by the amount of the recovery from any other insurance guaranty association or its equivalent.
(3) The guaranty association shall receive the benefit of any reinsurance contract or treaties entered into by the insolvent insurer which cover any of the liabilities incurred by the insolvent insurer with respect to covered claims.
Effective: July 15, 1998
History: Amended 1998 Ky. Acts ch. 99, sec. 8, effective July 15, 1998. — Created
1972 Ky. Acts ch. 137, sec. 12, effective June 16, 1972.
304, Subtitle 39; uninsured motorist; underinsured motorist; workers’ compensation; and health care.
Terms Used In Kentucky Statutes 304.36-120
- Association: means the Kentucky Insurance Guaranty Association created under
KRS §. See Kentucky Statutes 304.36-050 - Claimant: means any insured making a first-party claim or any person instituting a liability claim, except that no person who is an affiliate of the insolvent insurer may be a claimant. See Kentucky Statutes 304.36-050
- Contract: A legal written agreement that becomes binding when signed.
- Insolvent insurer: means an insurer:
(a) That was a member insurer at the time the policy was issued. See Kentucky Statutes 304.36-050 - Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(2) Any person having a claim which may be recovered under more than one (1) 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, from the association of the location of the property, and if it is a workers’ compensation claim, from the association of the residence of the claimant. Any recovery under this subtitle shall be reduced by the amount of the recovery from any other insurance guaranty association or its equivalent.
(3) The guaranty association shall receive the benefit of any reinsurance contract or treaties entered into by the insolvent insurer which cover any of the liabilities incurred by the insolvent insurer with respect to covered claims.
Effective: July 15, 1998
History: Amended 1998 Ky. Acts ch. 99, sec. 8, effective July 15, 1998. — Created
1972 Ky. Acts ch. 137, sec. 12, effective June 16, 1972.