§ 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.

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