20-1613. Reporting and settlement of
claims
A. In accordance with the terms of the applicable insurance contract, each claim
shall be promptly reported to the insurer or to its designated claim representative and
once reported shall be settled as soon as practicable.
B. Each claim shall be paid either by draft drawn upon the insurer, by electronic
funds transfer or by check of the insurer to the order of the claimant to whom payment of
benefits is due under the policy provisions or upon the claimant's direction paid to
another.
C. No plan or arrangement shall be used whereby any person, firm or corporation,
other than the insurer or its designated claim representative, shall be authorized to
settle or adjust claims. The creditor shall not be designated as claim representative
for the insurer in adjusting claims.
|