(1)(a) A person need not exhaust any right available under an insolvent member insurers policy, but if the person has a claim under an insurance policy that arises from the same facts, injury or loss from which a covered claim against the association arises, whether or not the insolvent member insurer issued the policy, the person must first exhaust all coverage under the policy, including the right to a defense, before the association must pay the covered claim. The associations payment obligation must be reduced by the full applicable limits set forth in the other insurance policy and the association must receive a full credit for the limits. If the policy does not set forth applicable limits, the claim against the association must be reduced by the amount of the total recovery. (b) A claim under this subsection includes any amount that is payable by or on behalf of a self-insured claimant. (c) A claim arises from the same facts, injury or loss from which a covered claim against the association arises if the person that makes a claim under a policy of liability insurance is jointly and severally liable, or is a joint tortfeasor, with a person that is covered under the policy of an insolvent member insurer under which the covered claim arises. (d) Before making a claim against the association, a person that has a claim in which the injury or loss is alleged to result from exposure to, or the release of, asbestos or any environmental pollutant or contaminant must first exhaust all coverage available to the person under any and all other insurance policies that cover the claim during all periods in which the other insurance policies are available to the person, even if an insolvent member insurer provided the only coverage for the claim when the exposure or release allegedly occurred. (2) Any person that has a claim that may also be recovered from one or more insurance guaranty agencies that perform functions similar to that of the Oregon Insurance Guaranty Association shall first seek recovery from whichever organization serves the place of residence of the insured, except that: (a) Recovery on first party claims for damage to property with a permanent location must first be sought from whichever organization serves the location of the property; and (b) Recovery on workers compensation claims must first be sought from whichever organization serves the residence of the claimant. (3) Any recovery under ORS 734.510 to 734.710 from the association must be reduced by the amount of any recovery under this section.
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