502

LAWS OF MARYLAND

Ch. 235

Replacement Volume and 1975 Supplement) to read as
follows:

Article 48A — Insurance Code

482A. HEALTH CARE MALPRACTICE INSURANCE.

(A)    EVERY POLICY INSURING A HEALTH CAPE PROVIDER
AGAINST DAMAGES DUE TO MEDICAL INJURY ARISING OR
RESULTING FROM THE RENDERING OR FAILURE TO RENDER HEALTH
CARE SHALL CONTAIN PROVISIONS CONSISTENT WITH THE
REQUIREMENTS OF SUBTITLE 2A OF TITLE 3 OF THE COURTS
ARTICLE.

(B)    EVERY SUCH POLICY SHALL CONTAIN PROVISIONS
AUTHORIZING THE INSURER, WITHOUT RESTRICTION, TO
NEGOTIATE AND EFFECT A COMPROMISE OF CLAIMS WITHIN THE
LIMITS OF THE INSURER'S LIABILITY, IF THE ENTIRE AMOUNT
SETTLED UPON IS TO BE PAID BY THE INSURER.

(C)    THE INSURER IS AUTHORIZED TO MAKE PAYMENTS TO
OR ON BEHALF OF CLAIMANTS FOR REASONABLE HOSPITAL AND
MEDICAL COSTS, LOSS OF WAGES, AND EXPENSES FOR
REHABILITATION SERVICES AND TREATMENT, WITHIN THE LIMITS
OF THE INSURER'S LIABILITY, IN ADVANCE OF AN ULTIMATE
DISPOSITION OF THE CLAIM. SUCH PAYMENTS SHALL NOT
CONSTITUTE AN ADMISSION OF LIABILITY TO OR OF DAMAGES
SUFFERED BY THE CLAIMANT, AND SHALL NOT PREJUDICE THE
INSURER OR ANY OTHER PARTY WITH RESPECT TO ANY RIGHT,
CLAIM, OR DEFENSE.

SECTION 3. AND BE IT FURTHER ENACTED, That Section
5—109 of Article — Courts and Judicial Proceedings, of
the Annotated Code of Maryland (1974 Volume and 1975
Supplement) be and it is hereby repealed and reenacted,
with amendments, to read as follows:

Article — Courts and Judicial Proceedings

5-109.

An action for damages for an injury arising out of
the rendering of or failure to render professional
services by a [physician] HEALTH CARE PROVIDER, AS
DEFINED IN §3-2A01 OF THIS ARTICLE shall be filed (1)
within five years of the time the injury was committed or
(2) within three years of the date when the injury was
discovered, whichever is the shorter. [In no event shall
this time run against a minor until he has attained
majority.] IF THE CLAIMANT WAS UNDER 16 YEARS OF AGE AT
THE TIME THE INJURY WAS COMMITTED, THE TIME SHALL
COMMENCE WHEN HE REACHES THE AGE OF 16. FILING OF A
CLAIM WITH THE HEALTH CLAIMS ARBITRATION OFFICE IN
ACCORDANCE WITH §3-2A04 OF THIS ARTICLE SHALL BE DEEMED
THE FILING OF AN ACTION FOR PURPOSES OF THIS SECTION.