§ 35-18-08 — Insurance - Payment to holder of lien - Deposit with clerk

If an injured person receiving hospitalization has a contract providing for indemnity or
compensation for the sum incurred for hospitalization, the hospital has a lien upon the amount
payable under such contract, and the party obligated to make reimbursement for the
hospitalization under the contract may pay the sum due thereunder directly to the hospital, and
such payment constitutes a release of the party making the payment under such contract to the
amount of the payment. If the amount of the claim is contested, payment must be made to the
clerk of the district court and is subject to all of the terms and conditions stated in section
35-18-07.