§19–511.1.    IN EFFECT

    (a)    This section applies only 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.

    (b)    If an injured person receives a written offer from a motor vehicle 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 enhanced underinsured motorist coverage for the bodily injury or death, a copy of the liability insurer’s written settlement offer.

    (c)    Within 60 days after receipt of the notice required under subsection (b) of this section, the enhanced underinsured 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.

    (d)    Within 30 days after a refusal to consent to acceptance of a settlement offer under subsection (c)(2) of this section, the enhanced underinsured motorist insurer shall pay to the injured person the amount of the settlement offer.

    (e)    (1)    Payment as described in subsection (d) of this section shall preserve the extended enhanced underinsured motorist insurer’s subrogation rights against the motor vehicle 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.

    (f)    The injured person may accept the motor vehicle 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 enhanced underinsured motorist insurer:

        (1)    on receipt of written consent to acceptance of the settlement offer and to the execution of releases; or

        (2)    if the enhanced underinsured motorist insurer has not met the requirements of subsection (c) or (d) of this section.

    (g)    Written consent by an enhanced underinsured 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 enhanced underinsured motorist insurer to raise any issue relating to liability or damages in an action against the enhanced underinsured motorist insurer; and

        (2)    does not constitute an admission by the uninsured motorist insurer as to any issue raised in an action against the enhanced underinsured motorist insurer.

§19–511.1.    // EFFECTIVE JUNE 30, 2029 PER CHAPTER 514 OF 2023 //

    (a)    This section applies only when the first named insured under a policy or binder of private passenger motor vehicle liability insurance has elected to obtain enhanced underinsured motorist coverage under § 19–509.1 of this subtitle instead of the uninsured motorist coverage required under § 19–509 of this subtitle.

    (b)    If an injured person receives a written offer from a motor vehicle 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 enhanced underinsured motorist coverage for the bodily injury or death, a copy of the liability insurer’s written settlement offer.

    (c)    Within 60 days after receipt of the notice required under subsection (b) of this section, the enhanced underinsured 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.

    (d)    Within 30 days after a refusal to consent to acceptance of a settlement offer under subsection (c)(2) of this section, the enhanced underinsured motorist insurer shall pay to the injured person the amount of the settlement offer.

    (e)    (1)    Payment as described in subsection (d) of this section shall preserve the extended enhanced underinsured motorist insurer’s subrogation rights against the motor vehicle 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.

    (f)    The injured person may accept the motor vehicle 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 enhanced underinsured motorist insurer:

        (1)    on receipt of written consent to acceptance of the settlement offer and to the execution of releases; or

        (2)    if the enhanced underinsured motorist insurer has not met the requirements of subsection (c) or (d) of this section.

    (g)    Written consent by an enhanced underinsured 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 enhanced underinsured motorist insurer to raise any issue relating to liability or damages in an action against the enhanced underinsured motorist insurer; and

        (2)    does not constitute an admission by the uninsured motorist insurer as to any issue raised in an action against the enhanced underinsured motorist insurer.