Liabilities qualifying for partial payment from fund; notice of claim

Sec. 10. (a) The commissioner, using money from the fund, shall pay a part of every liability that qualifies for partial payment under this chapter and under the terms of the coverage provided by the commission according to rules adopted under this chapter. (b) A liability of a member of the fund that has no underlying coverage or that has occurrence basis underlying coverage qualifies for partial payment under this chapter if it: (1) is a liability covered under the coverage document issued by the commission to the member; (2) arises out of an act or omission that takes place while the political subdivision bearing the liability is a member of the fund; and (3) satisfies the minimum total amount requirement set forth in section 12 of this chapter. (c) A liability of a member of the fund that has claims made basis underlying coverage qualifies for partial payment under this chapter if it: (1) is a liability covered under the coverage document issued by the commission to the member; (2) arises out of an act or omission with respect to which a claim is made while the political subdivision bearing the liability is a member of the fund; (3) is covered by the underlying coverage; and (4) satisfies the minimum total amount requirement set forth in section 12 of this chapter. (d) For the purposes of subsection (c)(2) and section 11 of this chapter, the question of when and how a claim is made shall be determined by the provisions of the insurance policy providing the underlying coverage. However, if the underlying coverage is not applicable to a liability, a claim is considered to have been made for purposes of subsection (c)(2) when notice of a claim giving rise to the liability is received by the fund member from the claimant or the claimant's representative.