17B:29-10 - Claims - New Jersey Statutes

17B:29-10.  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.

     L.1971, c. 144, s. 17B:29-10.