§ 27-14.3-44 - Claims of surety. - Rhode Island Statutes

SECTION 27-14.3-44

   § 27-14.3-44  Claims of surety. – Whenever a creditor, whose claim against an insurer is secured, in whole or inpart, by the undertaking of another person, fails to prove and file that claimthe other person may do so in the creditor's name, and shall be subrogated tothe rights of the creditor, whether the claim has been filed by the creditor orby the other person in the creditor's name, to the extent that he or shedischarges the undertaking. In the absence of an agreement with the creditor tothe contrary, the other person shall not be entitled to any distribution untilthe amount paid to the creditor on the undertaking plus the distributions paidon the claim from the insurer's estate to the creditor equals the amount of theentire claim of the creditor. Any excess received by the creditor shall be heldby him or her in trust for the other person. The term "other person" as used inthis section is not intended to apply to a guaranty association or foreignguaranty association.