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.