2010 Maryland Code
INSURANCE
TITLE 19 - PROPERTY AND CASUALTY INSURANCE
Subtitle 5 - Motor Vehicle Insurance - Primary Coverage
Section 19-511 - Uninsured motorist coverage - Settlement procedures.

§ 19-511. Uninsured motorist coverage - Settlement procedures.
 

(a)  Notice of settlement offer required.- If an injured person receives a written offer from a motor vehicle insurance liability insurer or that insurer's authorized agent to settle a claim for bodily injury or death, and the amount of the settlement offer, in combination with any other settlements arising out of the same occurrence, would exhaust the bodily injury or death limits of the applicable liability insurance policies, bonds, and securities, the injured person shall send by certified mail, to any insurer that provides uninsured motorist coverage for the bodily injury or death, a copy of the liability insurer's written settlement offer. 

(b)  Response to settlement offer.- Within 60 days after receipt of the notice required under subsection (a) of this section, the uninsured motorist insurer shall send to the injured person: 

(1) written consent to acceptance of the settlement offer and to the execution of releases; or 

(2) written refusal to consent to acceptance of the settlement offer. 

(c)  Payment of settlement offer.- Within 30 days after a refusal to consent to acceptance of a settlement offer under subsection (b)(2) of this section, the uninsured motorist insurer shall pay to the injured person the amount of the settlement offer. 

(d)  Subrogation rights of uninsured motorist insurer.-  

(1) Payment as described in subsection (c) of this section shall preserve the uninsured motorist insurer's subrogation rights against the liability insurer and its insured. 

(2) Receipt by the injured person of the payment described in subsection (c) of this section shall constitute the assignment, up to the amount of the payment, of any recovery on behalf of the injured person that is subsequently paid from the applicable liability insurance policies, bonds, and securities. 

(e)  Acceptance of settlement offer.- The injured person may accept the liability insurer's settlement offer and execute releases in favor of the liability insurer and its insured without prejudice to any claim the injured person may have against the uninsured motorist insurer: 

(1) on receipt of written consent to acceptance of the settlement offer and to the execution of releases; or 

(2) if the uninsured motorist insurer has not met the requirements of subsection (b) or subsection (c) of this section. 
 

[An. Code 1957, art. 48A, § 542; 1996, ch. 11.]