Sec. 38a-942. (Formerly Sec. 38-460). Claims of surety.
Sec. 38a-942. (Formerly Sec. 38-460). Claims of surety. Whenever an obligee
whose claim against an insurer is secured, in whole or in part, by the undertaking of
another person, fails to prove and file that claim, the other person may do so in the
obligee's name, and shall be subrogated to the rights of the obligee, whether the claim
has been filed by the obligee or by the other person in the obligee's name, to the extent
that the obligee discharges the undertaking. In the absence of an agreement with the
obligee to the contrary, the other person shall not be entitled to any distribution until
the amount paid to the obligee on the undertaking plus the distributions paid on the
claim from the insurer's estate to the obligee equals the amount of the entire claim of
the obligee. Any excess received by the obligee shall be held by him in trust for such
other person. The term "other person", as used in this section is not intended to apply
to a guaranty association.
(P.A. 79-382, S. 40; P.A. 98-214, S. 21.)
History: Sec. 38-460 transferred to Sec. 38a-942 in 1991; P.A. 98-214 substituted "obligee" for "creditor" and "he",
and deleted "however" and "or foreign guaranty association".