Ch. 222

1995 LAWS OF MARYLAND

BY adding to

Article - Insurance

Section 4-117

Annotated Code of Maryland

(As enacted by Chapter____ (H.B. 11) of the Acts of the General Assembly of

1995)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

490J 61B.

(A) AT THE TIME OF PAYMENT AND IF, IF THE PAYMENT HAS BEEN
SPECIFICALLY AUTHORIZED BY THE CLAIMANT'S ATTORNEY, AN INSURER SHALL
MAY PROVIDE WRITTEN NOTICE TO A THIRD PARTY CLAIMANT OF PAYMENT OF
$2,000 OR MORE IN SETTLEMENT OF A THIRD PARTY LIABILITY CLAIM FOR BODILY
INJURY IF:

(1) THE CLAIMANT IS AN INDIVIDUAL; AND

(2) THE CLAIMANT IS A RESIDENT OF MARYLAND; AND

(3) (2) THE PAYMENT IS DELIVERED TO THE CLAIMANT'S ATTORNEY
OR OTHER REPRESENTATIVE BY CHECK, DRAFT, OR OTHER MEANS.

(B)    THE NOTICE REQUIRED BY PROVIDED UNDER subsection (a) of this
SECTION SHALL BE SENT BY REGULAR MAIL AT LEAST 5 WORKING DAYS AFTER
PAYMENT IS DELIVERED UNDER SUBSECTION (A)(2) OF THIS SECTION TO THE
CLAIMANT AT THE LAST KNOWN ADDRESS OF THE CLAIMANT.

(C)    THE INSURER MAY PROVIDE NOTICE TO THE CLAIMANT BY A COPY OF
THE LETTER OF TRANSMITTAL TO THE CLAIMANT'S ATTORNEY OR OTHER
REPRESENTATIVE.

(D) THIS SECTION MAY NOT BE CONSTRUED TO CREATE:

(1) A CAUSE OF ACTION FOR ANY PERSON AGAINST AN INSURER BASED
ON THE INSURER'S FAILURE TO PROVIDE THE NOTICE REQUIRED BY UNDER THIS
SECTION; OR                                                                          

(2) A DEFENSE FOR ANY PARTY AGAINST A CAUSE OF ACTION BASED
ON THE INSURER'S FAILURE TO PROVIDE THE NOTICE REQUIRED BY UNDER THIS

SECTION.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

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