§ 13-113
186 words·~1 min read·
/md/insurance/13-113A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§13–113.
(1)A claimant shall report a claim promptly to the insurer or its designated claim representative.
(2)The insurer shall maintain adequate claim files.
(3)The insurer shall settle a claim as soon as possible and in accordance with the terms of the insurance contract.
(b)The insurer shall pay a claim by a draft drawn on the insurer or by a check of the insurer to the order of:
(1)the claimant to whom payment of the claim is due under the policy; or
(2)a person to whom the claimant directs payment be made.
(1)A plan or arrangement may not be used if it authorizes a person other than the insurer or its designated claim representative to settle or adjust claims.
(2)The creditor may not be designated as the claim representative of the insurer to adjust a claim.
(3)Notwithstanding paragraph
(2)of this subsection, by arrangement with the group insurer, a group policyholder may draw a draft or check in payment of a claim due to the group policyholder subject to audit and review by the group insurer.