§ 27-8-4-10 — Report, adjustment, and settlement of 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 such 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 claim 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.
Formerly: Acts 1961, c.47, s.10.