§ 3665a. Timely payment of property and casualty insurance claims; interest
(a) This section applies to policies of property, casualty, surety, and title insurance,
as defined in section 3301 of this title. It does not apply to workers’ compensation insurance. As used in this section, “claimant”
means any person asserting a right to payment under an insurance policy or contract
arising out of the occurrence of the contingency or loss covered by such policy or
contract or any person asserting a claim against any other person or the interests
insured under an insurance policy or contract, and includes a claimant’s designated
legal representative and any member of the claimant’s immediate family designated
in writing by the claimant.
(b) Unless a different time period is specified in another section of this title, all
payments of claims under policies of insurance shall be made within time periods provided
by this section:
(1) For claims under policies of insurance other than surety insurance and title insurance,
within 10 business days after the date that settlement of the claim is agreed upon
between the insurer, the claimant, and the loss payee, as applicable, and in accordance
with rules adopted by the Commissioner.
(2) For claims under policies of surety and title insurance, within 30 days after the
date that settlement of the claim is agreed upon between the insurer, the claimant,
and the loss payee, as applicable, and in accordance with rules adopted by the Commissioner.
(3) If a claim is contested, within 30 days after the entry of a final nonappealable judgment
against the insurer; the entry of a binding arbitration decision between the insurer,
the claimant, the loss payee, and the Department, as applicable; or the execution
of a settlement agreement between the insurer, the claimant, the loss payee, and the
Department, as applicable.
(c) If an insurer fails to pay a claim within the applicable time period set forth in
subsection (b) of this section or any other time period provided by statute, it shall
thereafter pay interest on the amount of the claim at the judgment rate allowed by
law. Interest shall accrue from 30 days after the date the insurer receives a properly
executed proof of loss. (Added 2019, No. 103 (Adj. Sess.), § 15.)