1.  A payment or payments made by any person, or by the person's insurer by virtue of an insurance policy, on account of bodily injury or death or damage to or loss of property of another, does not constitute an admission of liability or waiver of defense as to such injury, death, loss or damage, or be admissible in evidence in any action brought against the insured person or the person's insurer for damages, indemnity or benefits arising out of such injury, death, loss or damage unless pleaded as a defense to the action.  

2.  All such payments must be credited upon any settlement with respect to the same damage, expense, or loss made by, or upon any judgment rendered therefor in such an action against, the payor or the payor's insurer, and in favor of any person to whom or on whose account payment was made.