58-30-128. Settling claims--Content of contract. If the managing general agent may settle claims on behalf of the insurer, the following shall be included in the contract:
(1) All claims shall be reported to the company in a timely manner;
(2) A copy of the claim file shall be sent to the insurer at its request or as soon as it becomes known that the claim:
(a) Involves a coverage dispute;
(b) May exceed the managing general agent's claims settlement authority;
(c) Is open for more than six months; or
(d) Is closed by payment of an amount set by the company;
(3) All claim files are the joint property of the insurer and managing general agent. Upon an order of liquidation of the insurer, the files shall become the sole property of the insurer or its estate and the managing general agent shall have reasonable access to and the right to copy the files on a timely basis;
(4) Any settlement authority granted to the managing general agent may be terminated for cause upon the insurer's written notice to the managing general agent or upon the termination of the contract. The insurer may suspend the settlement authority during the pendency of any dispute regarding the cause for termination;
(5) The claims settlement authority and limitations of the managing general agent.
The director may initially and at least annually review the amount for settling claims or payment of claims and direct the amount be changed.
Source: SL 1992, ch 353, § 5.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal insurance products you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with access to legal services through a network of provider law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our provider law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your provider law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal insurance products, and access to the LegalFix network of provider law firms are subject to the LegalFix Terms of Service and Privacy Policy.
