Section 4-117 - Notice to third party claimant of payment to attorney. - Maryland Statutes

§ 4-117. Notice to third party claimant of payment to attorney.
 

(a)  In general.- 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)  Time of notice.- 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)  Letter of transmittal.- The insurer may provide notice to the claimant by a copy of the letter of transmittal to the claimant's attorney. 

(d)  Construction of section.- 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. 
 

[An. Code 1957, art. 48A, § 61B; 1995, ch. 222, § 2; 2007, ch. 131.]