# Tenn. Code Ann. § 56-12-110: Effect of paid claims - Rights of association - Subrogation - Priorities - Statements > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-110 ## Section - **Citation:** Tenn. Code Ann. § 56-12-110 - **Heading:** Effect of paid claims - Rights of association - Subrogation - Priorities - Statements - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 56 / Chapter 12 / Section 56-12-110 ## Text (a) Any person recovering under this part shall be deemed to have assigned that person's rights under the policy to the association to the extent of that person's recovery from the association. Every insured or claimant seeking the protection of this part shall cooperate with the association to the same extent as that person would have been required to cooperate with the insolvent insurer. The association shall have no cause of action against the insured of the insolvent insurer for any sums it has paid out except those causes of action as the insolvent insurer would have had if the sums had been paid by the insolvent insurer and except as provided in subsection (b). (b) The association shall have the right to recover from the following persons the amount of any "covered claim" paid on behalf of such person pursuant to this part: (1) Any insured whose net worth on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer exceeds twenty-five million dollars ($25,000,000) and whose liability obligations to other persons are satisfied in whole or in part by payments made under this part; and (2) Any person who is an affiliate of the insolvent insurer and whose liability obligations to other persons are satisfied in whole or in part by payments made under this part. (c) The association and any similar organization in another state are claimants in the liquidation of an insolvent insurer for any amounts paid by them on covered claims obligations as determined under this part or similar laws in other states and shall receive dividends and any other distributions at the priority set forth in § 56-9-330 . The receiver, liquidator or statutory successor of an insolvent insurer shall be bound by determinations of covered claim eligibility under this part and by settlements of claims made by the association or a similar organization in another state. The court having jurisdiction shall grant such claims priority equal to that which the claimant would have been entitled in the absence of this part against the assets of the insolvent insurer. The expenses of the association or similar organization in handling claims shall be accorded the same priority as the liquidator's expenses for handling claims. (d) The association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the association and estimates of anticipated claims on the association that shall preserve the rights of the association against the assets of the insolvent insurer. Acts 1971, ch. 180, § 10; T.C.A., § 56-4010; Acts 1999, ch. 48, § 9. (a) Any person recovering under this part shall be deemed to have assigned that person's rights under the policy to the association to the extent of that person's recovery from the association. Every insured or claimant seeking the protection of this part shall cooperate with the association to the same extent as that person would have been required to cooperate with the insolvent insurer. The association shall have no cause of action against the insured of the insolvent insurer for any sums it has paid out except those causes of action as the insolvent insurer would have had if the sums had been paid by the insolvent insurer and except as provided in subsection (b). h the association to the same extent as that person would have been required to cooperate with the insolvent insurer. The association shall have no cause of action against the insured of the insolvent insurer for any sums it has paid out except those causes of action as the insolvent insurer would have had if the sums had been paid by the insolvent insurer and except as provided in subsection (b). (b) The association shall have the right to recover from the following persons the amount of any "covered claim" paid on behalf of such person pursuant to this part: (1) Any insured whose net worth on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer exceeds twenty-five million dollars ($25,000,000) and whose liability obligations to other persons are satisfied in whole or in part by payments made under this part; and (2) Any person who is an affiliate of the insolvent insurer and whose liability obligations to other persons are satisfied in whole or in part by payments made under this part. (1) Any insured whose net worth on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer exceeds twenty-five million dollars ($25,000,000) and whose liability obligations to other persons are satisfied in whole or in part by payments made under this part; and (2) Any person who is an affiliate of the insolvent insurer and whose liability obligations to other persons are satisfied in whole or in part by payments made under this part. (c) The association and any similar organization in another state are claimants in the liquidation of an insolvent insurer for any amounts paid by them on covered claims obligations as determined under this part or similar laws in other states and shall receive dividends and any other distributions at the priority set forth in § 56-9-330 . The receiver, liquidator or statutory successor of an insolvent insurer shall be bound by determinations of covered claim eligibility under this part and by settlements of claims made by the association or a similar organization in another state. The court having jurisdiction shall grant such claims priority equal to that which the claimant would have been entitled in the absence of this part against the assets of the insolvent insurer. The expenses of the association or similar organization in handling claims shall be accorded the same priority as the liquidator's expenses for handling claims. (d) The association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the association and estimates of anticipated claims on the association that shall preserve the rights of the association against the assets of the insolvent insurer. Acts 1971, ch. 180, § 10; T.C.A., § 56-4010; Acts 1999, ch. 48, § 9. ## Nearby sections - [Tenn. Code Ann. § 56-12-101 Short title](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-101.md) - [Tenn. Code Ann. § 56-12-102 Purpose](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-102.md) - [Tenn. Code Ann. § 56-12-103 Scope](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-103.md) - [Tenn. Code Ann. § 56-12-104 Part definitions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-104.md) - [Tenn. Code Ann. § 56-12-105 Creation of association](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-105.md) - [Tenn. Code Ann. § 56-12-106 Board of directors - Selection - Qualifications - Expenses](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-106.md) - [Tenn. Code Ann. § 56-12-107 Powers and duties of association](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-107.md) - [Tenn. Code Ann. § 56-12-108 Plan of operation - Requirements of plan - Delegation of authority](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-108.md) - [Tenn. Code Ann. § 56-12-109 Powers and duties of commissioner - Judicial review](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-109.md) - [Tenn. Code Ann. § 56-12-110 Effect of paid claims - Rights of association - Subrogation - Priorities - Statements](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-110.md) - [Tenn. Code Ann. § 56-12-111 Nonduplication of recovery - Exhaustion of other remedies](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-111.md) - [Tenn. Code Ann. § 56-12-112 Reports by board](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-112.md) - [Tenn. Code Ann. § 56-12-113 Examination of the association - Annual financial report](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-113.md) - [Tenn. Code Ann. § 56-12-114 Tax and fees exemption](https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-114.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T56_C12_S56-12-110. Check the current official text before relying on it. Not legal advice.