§ 17-357. Payment of claim subject to Indemnity Fund acquiring subrogation rights - Administrator to protect Indemnity Fund in judicial and administrative proceedings - Notice of lawsuit - Enforcement of third party claim.

A.  Payment of any claim from the Indemnity Fund shall be subject to the Indemnity Fund acquiring by subrogation the right to recover from any person any amounts paid by the Indemnity Fund to or on behalf of any eligible person which may be determined to be fraudulent, reimbursable by other sources, or excessive.  The Administrator shall bring an action on behalf of the Indemnity Fund to recover any such monies in the district court where the property is located or where the person from whom recovery is sought resides.  The prevailing party in such cases shall be entitled to recover interest, costs of the action and attorney fees.  Costs of the action shall include filing fees, administrative costs, witness fees and expenses related to the proceeding.

B.  The Administrator is authorized to represent and protect the Indemnity Fund in any state or federal judicial or administrative proceeding.

C.  Any person who is a party to a lawsuit and who may request any payment or reimbursement payable from the Indemnity Fund as a result of such lawsuit shall notify the Administrator upon being served with notice of the lawsuit.  The Administrator is authorized to establish and enforce such third party claim requirements as are necessary to implement and comply with the provisions of this section.

Added by Laws 1989, c. 90, § 26, emerg. eff. April 21, 1989.  Amended by Laws 1990, c. 240, § 4, operative July 1, 1990; Laws 1993, c. 344, § 22, emerg. eff. June 9, 1993; Laws 1998, c. 375, § 32, emerg. eff. June 9, 1998.