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Ch. 131
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Martin O'Malley, Governor
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Insurers - Third Party Claimants - Notice of Payment to Claimant's Attorney
FOR the purpose of requiring, instead of authorizing, an insurer to provide certain
notice to certain third party claimants if payment, in a certain amount, of a
certain third party liability claim is made to the claimant's attorney under
certain circumstances; altering the time period within which notice must be
sent to a third party claimant; making conforming changes; and generally
relating to notice to third party claimants of payment by insurers to a
claimant's attorney.
BY repealing and reenacting, with amendments,
Article — Insurance
Section 4-117
Annotated Code of Maryland
(2003 Replacement Volume and 2006 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Insurance
4-117.
(a) At the time of payment, if the payment has been specifically authorized
by the claimant's attorney, an insurer [may] SHALL 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 payment is delivered to the claimant's attorney by check, draft,
or other means.
(b) The notice [provided under] REQUIRED BY subsection (a) of this section
shall be sent by regular mail [at least] NO MORE THAN 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.
(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 [under] REQUIRED BY this section; or
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- 1177 -
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