§431:10B-111  Claims.  (a)  All claims
shall be promptly reported to the insurer or its designated claim
representative, and the insurer shall maintain adequate claim files.  All
claims shall be settled as soon as possible and in accordance with the terms of
the insurance contract.



(b)  All claims shall be paid either by draft
drawn upon the insurer or by check of the insurer to the order of the claimant
to whom payment of the claim is due pursuant to the policy provisions, or upon
direction of the claimant to one specified.



(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 claims representative for the
insurer in adjusting claims; provided that a group policyholder may, by
arrangement with the group insurer, draw drafts or checks in payment of claims
due to the group policyholder subject to audit and review by the insurer. [L
1987, c 347, pt of §2]