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

West's Annotated Code of MarylandInsuranceEffective: October 1, 2023 to June 30, 2029

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 19. Property and Casualty Insurance
Subtitle 5. Motor Vehicle Insurance--Primary Coverage (Refs & Annos)
Effective: October 1, 2023 to June 30, 2029
MD Code, Insurance, § 19-511
§ 19-511. Uninsured motorist coverage--settlement procedures
Currentness
<Section effective until July 1, 2029. See, also, section 19-511 effective July 1, 2029.>
Scope of section
(a) This section does not apply when the first named insured under a policy or binder of private passenger motor vehicle liability insurance has enhanced underinsured motorist coverage under § 19-509.1 of this subtitle instead of the uninsured motorist coverage required under § 19-509 of this subtitle.
Settlement offers sent to insurers providing uninsured motorist coverage
(b) 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.
Consent or refusal to consent to acceptance of settlement offer
(c) Within 60 days after receipt of the notice required under subsection (b) 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.
Payment of amount of settlement offer by uninsured motorist insurer
(d) Within 30 days after a refusal to consent to acceptance of a settlement offer under subsection (c)(2) of this section, the uninsured motorist insurer shall pay to the injured person the amount of the settlement offer.
Preservation of uninsured motorist insurer’s subrogation rights
(e)(1) Payment as described in subsection (d) 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 (d) 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.
Acceptance of settlement offer and execution of releases
(f) 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 (c) or subsection (d) of this section.
Construction of written consent to acceptance of settlement offer
(g) Written consent by an uninsured motorist insurer to acceptance of a settlement offer under subsection (c)(1) of this section:
(1) may not be construed to limit the right of the uninsured motorist insurer to raise any issue relating to liability or damages in an action against the uninsured motorist insurer; and
(2) does not constitute an admission by the uninsured motorist insurer as to any issue raised in an action against the uninsured motorist insurer.

Credits

Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997. Amended by Acts 2012, c. 268, § 1, eff. Oct. 1, 2012; Acts 2012, c. 269, § 1, eff. Oct. 1, 2012; Acts 2017, c. 20, § 2, eff. Oct. 1, 2017; Acts 2017, c. 815, § 2, eff. Oct. 1, 2017; Acts 2023, c. 514, § 1, eff. Oct. 1, 2023.
Formerly Art. 48A, § 542.
MD Code, Insurance, § 19-511, MD INSURANCE § 19-511
Current through legislation effective through April 25, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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