CHAPTER 404-H NEW HAMPSHIRE INSURANCE GUARANTY ASSOCIATION ACT OF 2004
Section 404-H:11
404-H:11 Effect of Paid Claims. –
I. Any person recovering under this chapter shall be deemed to have assigned his or her rights under the policy to the association but shall retain the right to recover from the receiver or liquidator of the insolvent insurer any amount of his or her claim under the coverage of the policy not paid by the association. Every person with a right to recover under this chapter shall cooperate with the association in the handling of the claim and perform all of such person's obligations under the policy 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 and except as provided in paragraph II. 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 the insureds to the receiver, liquidator, or statutory successor for unpaid assessments.
II. The association shall have the right to recover from the following persons the amount of any covered claim paid, whether for defense, indemnity, or otherwise, on behalf of such person pursuant to this chapter:
(a) Any insured whose net worth on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer exceeds $25 million, provided the insured's net worth shall be deemed to include the net worth of the insured and all of its affiliates on a consolidated basis; and
(b) Any person who is an affiliate of the insolvent insurer and whose liability obligations to other persons are satisfied in whole or in part by payments made under this chapter.
III. The association and any association similar to the association in another state shall be recognized as claimants in the liquidation of an insolvent insurer for any amounts paid by them on covered claim obligations as determined under this chapter or similar laws in other states and shall receive dividends and any other distributions at the priority set forth in RSA 402-C. The receiver, liquidator, or statutory successor of an insolvent insurer shall be bound by determinations of covered claims eligibility under this chapter and by settlements of claims made by the association or a similar organization in another state and shall grant such claims priority equal to that which the claimant would have been entitled in the absence of this chapter 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.
IV. The association shall periodically 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 which shall preserve the rights of the association against the assets of the insolvent insurer.