Section 11.110. Indemnity rights.

(1) A servicing insurer to which a claim has  been  assigned shall preserve and enforce rights to indemnity or reimbursement from third parties as follows:

(a)    If the value of the right to indemnity or reimbursement is $1,000.00 or more, excluding loss adjustment costs, the servicing insurer  shall reduce the right to judgment.

(b)   If the value of the right to indemnity or reimbursement is less than $1,000.00, excluding loss adjustment costs, the servicing insurer shall either reduce the right to judgment or seek an acknowledgment of debt from the owner or registrant of the uninsured vehicle or from the  estate  of  the owner or registrant.

(2)    A right to indemnity or reimbursement which has been reduced to judgment shall be assigned and forwarded to the assigned claims facility within 60 days after the expiration of the appeal period. A  right  to indemnity or reimbursement which has been preserved by an acknowledgment of debt shall be assigned and forwarded to the assigned  claims  facility within 60 days after receipt of the acknowledgement.

(3)      A servicing insurer may enter into a reasonable installment repayment agreement with a third  party  against   whom  a  judgment   or acknowledgment of debt has been obtained. A written agreement  or   court order providing for the payment of a judgment or acknowledgment of debt in installments shall be assigned and forwarded to the assigned  claims facility within 60 days after issuance of the order or  receipt  of  the agreement. A servicing insurer shall immediately transmit to the assigned claims facility all proposals for a written agreement to repay a judgment or acknowledgment of debt in installments.

(4)    A servicing insurer may enter into a compromise or settlement with a third party against whom rights to indemnity or reimbursement exist if the compromise or settlement is reasonable and approved by  the  assigned  claims facility.

History: 1979 AC; 1989 AACS.