Marvin Mandel, Governor                        1501

(b)    The Commissioner may:

(1)    Require that the Association notify the insureds of the in-
solvent insurer and any other interested parties of the determination
of insolvency and of their rights under this Act. Such notification
may be by mail at their last known address, where available, but if
sufficient information for notification by mail is not available, notice
by publication in a newspaper of general circulation shall be sufficient.

(2)    Suspend or revoke, after notice and hearing, the certificate
or authority to transact insurance in this state of any member
insurer which fails to pay an assessment when due or fails to comply
with the plan of operation. As an alternative, the Commissioner may
levy a fine on any member insurer which fails to pay an assessment
when due. Such fine shall not exceed 5% of the unpaid assessment
per month, except that no fine shall be less than $100 per month.

(3)    Revoke the designation of any servicing facility if he finds
claims are being handled unsatisfactorily.

(c)    Any final action or order of the Commissioner under this Act
shall be subject to judicial review in a court of competent jurisdiction.

511.    Effect on Paid Claims.

(a)    Any person recovering under this Act shall be deemed to have
assigned his rights under the policy to the Association to the extent
of his recovery from the Association. Every insured or claimant
seeking the protection of this Act shall cooperate with the Association
to the same extent as such 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 such causes of action as the insolvent
insurer would have had if such sums had been paid by the insolvent
insurer. In the case of an insolvent insurer operating on a plan
with assessment liability, payments of claims of the Association shall
not operate to reduce the liability of insureds to the receiver, liqui-
dator, or statutory successor for unpaid assessments.

(b)    The receiver, liquidator, or statutory successor of an insolvent
insurer shall be bound by settlements of covered claims by the Asso-
ciation or its representatives. The court having jurisdiction shall
grant such claims priority equal to that which the claimant would
have been entitled in the absence of this Act 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.

(c)    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 which shall preserve the rights of the Association against
the assets of the insolvent insurer.

512.    Non-duplication of Recovery.

(a) Any person having a claim against an insurer under any
provision in an insurance policy other than a policy of an insolvent
insurer which is also a covered claim, shall be required to exhaust