§ 26.1-37-13 — Claims

1. All claims must be promptly reported to the insurer or its designated claim
representative, and the insurer shall maintain adequate claim files. 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 the claimant to whom payment of the claim is due pursuant to
the policy provisions, or upon direction of the claimant to one specified.
3. No plan or arrangement may be used by which any person, firm, or corporation other
than the insurer or its designated claim representative is authorized to settle or adjust
claims. The creditor may 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, checks, or electronic transfers in payment of claims due to
the group policyholder subject to audit and review by the insurer.