§ 58-48-55. Nonduplication of recovery.
§ 58‑48‑55. Nonduplication of recovery.
(a) Any person having aright to a defense or a claim against an insurer under any provision in aninsurance policy other than a policy of an insolvent insurer which is also acovered claim, shall be required to exhaust first his rights under such policy.Any amount payable on a covered claim under this Article shall be reduced bythe amount of any recovery under that insurance policy. For purposes of thissection, a claim under an insurance policy shall include a claim under orcovered by any kind of insurance, whether it is a first‑party or a third‑partyclaim, and whether it is a policy covering the policyholder or another personliable to the claimant, and shall include, without limitation, policies ofaccident and health insurance, workers' compensation insurance, medical expensecoverage, and all other coverage except for policies of an insolvent insurer.
(a1) Any person having aclaim or legal right of recovery under any governmental insurance or guarantyprogram which is also a covered claim shall be required to exhaust first hisright under such program. Any amount payable on a covered claim under thisArticle shall be reduced by the amount of any recovery under such program.
(b) Any person having aclaim which may be recovered under more than one insurance guaranty associationor its equivalent shall seek recovery first from the association of the placeof residence of the policyholder except that if it is a first party claim fordamage to property with a permanent location, he shall seek recovery first fromthe association of the location of the property, and if it is a workers'compensation claim, he shall seek recovery first from the association of theresidence of the claimant. Any recovery under this Article shall be reduced bythe amount of recovery from any other insurance guaranty association or itsequivalent.
(c) No claim held by aninsurer, reinsurer, insurance pool, or underwriting association, whether theclaim is:
(1) based on anassignment, or
(2) based on rights ofsubrogation or contribution, or
(3) based on any othergrounds,
norany claim of lien, may be asserted in any legal action against a person insuredunder a policy issued by an insolvent insurer except to the extent the amountof such claim exceeds the obligation of the Association under G.S. 58‑48‑35(a)(1).
(d) Any person that hasliquidated by settlement or judgment a claim against an insured under a policyissued by an insolvent insurer, which claim is a covered claim and is also aclaim within the coverage of any policy issued by a solvent insurer, shall berequired to exhaust first his rights under such policy issued by the solventinsurer before execution, levy, or any other proceedings are commenced toenforce any judgment obtained against or the settlement with the insured of theinsolvent insurer. Any amount so recovered from a solvent insurer shall becredited against the amount of the judgment or settlement. (1971, c. 670, s. 1; 1985, c.613, ss. 7, 8; 1989, c. 206, s. 6; 1991 (Reg. Sess., 1992), c. 802, s. 5; 2003‑167,s. 3.)