58-19-32. Settlement or adjustment of claims by person other than insurer prohibited--Creditor not claim representative--Payment by group policyholder.
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.
Source: SL 1966, ch 111, ch 27, §10 (3).