2013 Maryland Code
INSURANCE
§ 4-117 - Notice to third party claimant of payment to attorney
§4-117.
(a) At the time of payment, if the payment has been specifically authorized by the claimant’s attorney, an insurer 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 required by subsection (a) of this section shall be sent by regular mail 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 required by 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 this section.
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