REGULATION OF FORMS AND RATES FOR PROPERTY AND CASUALTY INSURANCE
Forms Regulation-General Provisions
412:6 Prepayment of Judgment Prohibited.
No corporation or other insurer shall issue or deliver any policy of insurance against loss or expense by reason of claims made upon the insured for damages on account of bodily injuries suffered by an employee of the insured, or by any other person, or on account of damage to or the destruction of property, or wrongful acts and economic damages, which shall contain any provision making, or purporting to make, the pre-payment of any judgment that may be recovered against the insured upon any claim covered by the policy a condition precedent to any right of action against the insurer upon said policy; but every such policy shall contain an agreement in clear and explicit terms binding the insurer, to the extent of the liability assumed by the policy, to pay and satisfy any such judgment, and to protect the insured against the levy of any execution issued upon the same.
Source. 2003, 150:1, eff. Jan. 1, 2004.