When a claim may be recovered under multiple insurance guaranty associations, what is the initial requirement?

The correct choice highlights that when a claim may be recovered under multiple insurance guaranty associations, the initial requirement is to exhaust coverage from the insurer of the place of residence of the insured. This means that before seeking recovery from other associations, the claimant must first utilize the coverage available from their primary or local insurer.

The rationale for this requirement stems from the principle of priority in claims. By mandating that claims first be filed with the local insurer, it ensures that the primary source of coverage is tapped into, thereby minimizing the potential financial burden on insurance guaranty associations. These associations are typically intended to serve as a safety net when insurers are unable to meet their obligations, so utilizing primary coverage first helps maintain the integrity and intended functionality of those associations.

The other options outline steps or conditions that are not the initial requirements specified in this context. For instance, exhausting recovery from any guaranty association might not be appropriate if the primary coverage has not yet been pursued, and seeking compensation from a worker's compensation provider only applies in specific employment-related cases, not as a general initial requirement. Lastly, filing claims in the order they were submitted does not align with the specific requirement to prioritize local insurer coverage first.