PARRIS N. GLENDENING, Governor

Ch. 36

12-305. MOTOR VEHICLE LIABILITY INSURANCE — MANDATORY SETTLEMENT OF
PROPERTY DAMAGE CLAIM.

(A)     PENDING BODILY INJURY CLAIM.

A CLAIM FOR DAMAGE TO PROPERTY RESULTING FROM A MOTOR VEHICLE
ACCIDENT MAY NOT BE DENIED OR PAYMENT OF THE CLAIM DELAYED BECAUSE
THE CLAIMANT, OR ANOTHER PERSON, HAS A CLAIM PENDING FOR BODILY INJURY
THAT MAY HAVE ARISEN FROM THE SAME OR ANOTHER ACCIDENT.

(B)     PROMPT PAYMENT OF PROPERTY DAMAGE CLAIM.

THE AMOUNT PAYABLE FOR A CLAIM FOR DAMAGE TO PROPERTY IS DUE AND
OWING IMMEDIATELY AND SHALL BE PAID PROMPTLY BY AN INSURER OR BY A
SELF-INSURER THAT IS APPROVED UNDER § 17-103(A) OF THE TRANSPORTATION
ARTICLE IF:

(1)      THE INSURER OR SELF-INSURER HAS PROVIDED THE COVERAGE
FOR THE LIABLE PARTY; AND

(2)      THERE IS NO SIGNIFICANT DISPUTE ABOUT:

(I)       THE LIABILITY FOR THE PAYMENT OF THE FULL PROPERTY
DAMAGES; OR

(II)     THE MONETARY AMOUNT OF THOSE DAMAGES, INCLUDING:

1.        IF CLAIMED, AN AMOUNT FOR THE LOSS OF THE USE OF
THE MOTOR VEHICLE; AND

2.        THE COST OF OBTAINING AN ESTIMATE OF REPAIRS.

REVISOR'S NOTE: This section is new language derived without substantive
change from the first and second sentences of former Art. 48A, § 384B.

In subsection (a) of this section, the reference to the "claimant" is substituted
for the former reference to the "person who is entitled to payment" for clarity.

In subsection (b) of this section, the reference to "§ 17-103(a) of the
Transportation Article" is substituted for the former erroneous reference to
"§ 17-103(a)(2)".

Defined terms: "Insurer" § 1-101
"Person" § 1-101

12-306. SAME — EFFECT OF SETTLEMENT OF PROPERTY DAMAGE CLAIM.

A SETTLEMENT MADE BY AN INSURER OR A SELF-INSURER APPROVED UNDER
§ 17-103(A) OF THE TRANSPORTATION ARTICLE UNDER A MOTOR VEHICLE
LIABILITY INSURANCE POLICY OF A CLAIM ARISING FROM AN ACCIDENT OR OTHER
EVENT FOR DAMAGE TO OR DESTRUCTION OF PROPERTY OWNED BY ANOTHER
PERSON:

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