§ 10-10-112 — Claims

(1) 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.

(2) 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 such claimant to one
specified.

(3) No plan or arrangement shall be used whereby any person, firm, or
corporation, other than the insurer or its designated claim representative, is
authorized to settle or adjust claims. The creditor shall not be designated as claim
representative for the insurer in adjusting claims, but 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.

Legislative History

Source: L. 69: p. 540, � 12. C.R.S. 1963: � 72-28-12.