(a) Upon payment of $5,000 or more in settlement of any third-party liability claim, where the claimant is a natural person, the insurer shall cause written notice to be mailed to the claimant at the same time payment is made, by the insurer or its representative (including the insurer's attorney), to the claimant's attorney or other representative of the claimant by draft, check or otherwise.

(b) Nothing in subdivision (a) of this section shall create, or be construed to create, a cause of action for any person or entity, other than the Department of Financial Services, against the insurer or its representative based upon a failure to serve such notice, or the defective service of such notice. Nothing in subdivision (a) of this section shall establish, or be construed to establish, a defense for any party to any cause of action based upon a failure by the insurer or its representative to serve such notice, or the defective service of such notice.