Introduced By: Senators Oster and McDonald
Date Introduced : January 28, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Section 27-7-2.4 of the General Laws in Chapter 27-7 entitled "Liability Insurance" is hereby amended to read as follows:
27-7-2.4. Direct action against insurer upon filing for bankruptcy. -- Any person, having a claim because of damages of any kind caused by the tort of any other person, may file a complaint directly against the liability insurer of the alleged tort-feasor seeking compensation by way of a judgment for money damages whenever the alleged tort-feasor files for bankruptcy, involving a {ADD chapter 7 liquidation, a chapter 11 ADD} reorganization for the benefit of creditors or a {ADD chapter 13 ADD} wage earner plan, provided that the complaining party shall not recover an amount in excess of the insurance coverage available for the tort complained of.
SECTION 2. This act shall take effect upon passage.
