§ 58-57-60. Claims.
§ 58‑57‑60. Claims.
(a) All claims shall bepromptly reported to the insurer or its designated claim representative, andthe insurer shall maintain adequate claim files. All claims shall be settled assoon as possible and in accordance with the terms of the insurance contract.
(b) All claims shall bepaid either by draft drawn upon the insurer or by check of the insurer or byelectronic funds transfer or be paid by such other specified method upon thedirection of the beneficiary who is entitled thereto pursuant to the policyprovisions.
(c) No plan orarrangement shall be used whereby any person, firm or corporation other thanthe insurer or its designated claim representative shall be authorized tosettle or adjust claims. The creditor shall not be designated as claimrepresentative for the insurer in adjusting claims; provided, that a grouppolicyholder may, by arrangement with the group insurer, draw drafts,electronic funds transfers, or checks in payment of claims due to the grouppolicyholder subject to audit and review by the insurer.
(d) A claimacknowledgment shall be sent to the claimant within 30 days after receivingwritten or electronic notice of the claim. Acknowledgment shall include one ofthe following:
(1) A statement made tothe insured or the claimant advising that the claim is being investigated.
(2) Payment of theclaim.
(3) A bona fide writtenoffer of settlement.
(4) A written denial ofthe claim. (1975,c. 660, s. 1; 1993, c. 226, s. 10; 2005‑181, s. 4.)