FAQ

FAQ - Claims

The following are Claims questions and answers pertaining to CAR's role in the Department of Revenue's Insurance Claim Payment Intercept Program and the procedures for excess judgment reimbursement.

Questions:


How can a company be reimbursed for an excess judgment?

What is the CAR Claims Department’s role in the Department of Revenue’s Insurance Claim Payment Intercept Program (ICPIP)?

Answers:


How can a company be reimbursed for an excess judgment?

Companies are required under Rule 10, E, 1 of CAR Rules of  Operation to notify, in writing, CAR’s Vice President-Claims of any tort liability judgment or settlement that exceeds the limits of coverage within 180 days of the entry of judgment or settlement. Companies may then apply for reimbursement within one year of the entry of judgment or settlement, or, if a final judgment or settlement has not been entered, within 180 days of the entry of final judgment or execution of settlement.

The Vice President-Claims shall review the request with the Claims Advisory Committee who will make a recommendation to the Governing Committee. The Governing Committee may authorize reimbursement in part or in full unless it is determined that the Servicing Carrier was negligent in the handling of the claim and its negligence was the proximate cause of the excess judgment or settlement, in which case the request should be denied.

Further information may be obtained from Rule 10, E, 1 of CAR's Rules of Operation.

What is the CAR Claims Department’s role in the Department of Revenue’s Insurance Claim Payment Intercept Program (ICPIP)?

Pursuant to M.G.L. Ch. 175, sec. 24D, companies are required to verify that there are no outstanding child support liens with the Department of Revenue prior to making a payment equal to or in excess of $500 to a third party claimant. As a result of an agreement among CAR, the Department of Revenue, and the Division of Insurance, CAR audits companies’ compliance with the ICPIP program as part of its annual reviews of Servicing Carriers on behalf of the Department of Revenue. CAR notifies the Department of Revenue at the conclusion of the review of the compliance results. Any penalties for non-compliance are governed by the Department of Revenue.

 
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