§ 8-44-105 — Provisions of policies - primary liability - notice of injury

Every
contract insuring against liability for compensation or insurance policy evidencing
the same shall contain a clause to the effect that the insurance carrier shall be
directly and primarily liable to the employee and, in the event of death, to said
employee's dependents to pay compensation, if any, for which the employer is
liable, thereby discharging to the extent of such payment the obligations of the
employer to the employee; that, as between the employee and the insurance
carrier, notice or knowledge of the occurrence of the injury on the part of the
employer shall be deemed notice or knowledge, as the case may be, on the part of
the insurance carrier; that jurisdiction of the employer, for the purpose of articles
40 to 47 of this title, shall be jurisdiction of the insurance carrier; and that the
insurance carrier, in all things, shall be bound by and subject to the orders, findings,
decisions, or awards rendered against the employer under the provisions of said
articles. Such policy shall also provide that the employee shall have a first lien upon
any amount which becomes owing to the employer from the insurance carrier, and
the insurance carrier shall pay the same directly to the employee or the employee's
dependents, thereby discharging to the extent of such payment the obligation of
the employer to the employee. The policy shall not contain any provisions relieving
the insurance carrier from payment when the employer becomes legally incapable
or insolvent or is discharged in bankruptcy or otherwise during the period that the
policy is in operation or the compensation remains owing.

Legislative History

Source: L. 90: Entire article R&RE, p. 522, � 1, effective July 1.