Colorado Insurance Guaranty Ass'n v. Sunstate Equipment Co.

Opinion by

JUDGE WEBB

¶ 1 When an insurer becomes insolvent and liquidation of its assets does not produce sufficient funds to pay claims, should the loss be borne by first party insureds or third party claimants? The General. Assembly has created a guaranty association to pay the covered claims of an insolvent insurer.. But then, after payment to a third party claimant, does the loss stop at the association or return to the first party insured? This opinion concludes that under the applicable statutes, a high-net-worth, first party insured must bear the loss. • ,. ¶ 2 In this recoupment action…