§ 58-30-210. Claims of surety. - North Carolina Statutes

§58‑30‑210.  Claims of surety.

Whenever a creditor, whoseclaim against an insurer is secured in whole or in part by the undertaking ofanother person, fails to prove and file that claim, the other person may do soin the creditor's name and shall be subrogated to the rights of the creditor,whether the claim has been filed by the creditor or by the other person in thecreditor's name, to the extent that he discharges the undertaking.  In theabsence of an agreement with the creditor to the contrary, the other personshall not be entitled to any distribution until the amount paid to the creditoron the undertaking plus the distributions paid on the claim from the insurer'sestate to the creditor equals the amount of the entire claim of the creditor. Any excess received by the creditor shall be held by him in trust for suchother person.  As used in this section, "other person" does not meana guaranty association or foreign guaranty association. (1989,c. 452, s. 1.)