Sec. 38a-654. (Formerly Sec. 38-258). Processing of claims.
Sec. 38a-654. (Formerly Sec. 38-258). Processing 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 reasonably
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 any person 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 a group policyholder may, by arrangement with
the group insurer, draw drafts or checks in payment of claims due the group policyholder
subject to audit and review by the insurer.
(1959, P.A. 576, S. 10.)
History: Sec. 38-258 transferred to Sec. 38a-654 in 1991.