Claims.
1. All claims must be promptly reported to the insurer or its designated representative, and the insurer shall maintain adequate files on all reported claims. All claims must be settled as soon as possible and in accordance with the terms of the insurance contract.
2. All claims must be paid either by draft drawn upon the insurer or by check of the insurer to the order of:
(a) The claimant to whom payment of the claim is due pursuant to the provisions of the policy; or
(b) Any other person designated by the claimant to whom payment is due.
3. No plan or arrangement may be used whereby any person other than the insurer or its designated representative is authorized to settle or adjust claims. The creditor may not be designated as the representative for the insurer in adjusting claim, but a group policyholder may, by arrangement with the group insurer, draw drafts or checks in payment of claims due the group policyholder subject to the periodic audit of the insurer.
Last modified: February 27, 2006