31A-22-1203 - Right of reinsurer to defend claim. - Utah Statutes

31A-22-1203. Right of reinsurer to defend claim.
A reinsurance contract may provide that the receiver of a ceding insurer shall, within aspecified or reasonable time after the claim is filed in court or in the receivership, give writtennotice to an assuming reinsurer of all or part of the claim against the ceding insurer. During thependency of the claim, any assuming reinsurer may investigate the claim and unless forbidden todo so by the reinsurance agreement, may intervene in the proceeding in which the claim ispending and interpose any defenses it considers available which have not been raised by theceding insurer or its receiver. The expenses incurred by the assuming reinsurer in this type ofaction are payable up to the amount of the expenses or the amount of the benefit produced,whichever is less, as expenses of the receivership. If two or more assuming reinsurers havepotential liability because of the same claim, the expenses shall be apportioned among them inproportion to the benefit received.

Enacted by Chapter 242, 1985 General Session