1. (a) Any person having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer that is also a covered claim shall be required to exhaust first such person's right under such policy. A claim under an insurance policy shall include a claim under any kind of insurance, whether such claim is a first party or third party claim, and shall include, without limitation, accident and health insurance, workers' compensation, Blue Cross and Blue Shield and all other coverages except for policies of an insolvent insurer or any right under a life insurance policy. Any amount payable on a covered claim under this act shall be reduced by the full applicable limits stated in the other insurance policy or by the amount of any recovery under such other insurance policy. The credit shall be reduced by the lesser of the:

   1. (1) Association's covered claim limit;
   2. (2) amount of the judgment on the settlement of the claim; or
   3. (3) policy limits of the insolvent insurer's policy.
2. (b) Any person having a claim that may be recovered under more than one insurance guaranty association or its equivalent shall seek recovery first from the association of the place of residence of the insured except if it is a first party claim for damage to property with a permanent location from the association of the location of the property and if it is a workmen's compensation claim from the association of the residence of the claimant. Any recovery under this act shall be reduced by the amount of the recovery from any other insurance guaranty association or its equivalent.
3. (c) The provisions of this section shall apply to all claims that have not been paid prior to the effective date of this act.

L. 1970, ch. 185, § 10; L. 2005, ch. 92, § 4; L. 2024, ch. 74, § 5; July 1.