EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0992*
SENATE BILL 992
D3 2lr2022
By: Senator Waldstreicher
Introduced and read first time: February 20, 2022
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
Claim Against Estate of a Decedent – Service of Process 2
FOR the purpose of requiring an automobile insurer to accept service of process from a 3
third–party claimant if the person insured under the policy is deceased and no estate 4
is open and the third–party claimant agrees to cap recovery at applicable policy 5
limits; and generally relating to actions by third–party claimants against automobile 6
insurers. 7
BY renumbering 8
Article – Courts and Judicial Proceedings 9
Section 3–1701 10
to be Section 3–1702 11
Annotated Code of Maryland 12
(2020 Replacement Volume and 2021 Supplement) 13
BY adding to 14
Article – Courts and Judicial Proceedings 15
Section 3–1701 and 3–1703 16
Annotated Code of Maryland 17
(2020 Replacement Volume and 2021 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Courts and Judicial Proceedings 20
Section 3–1702(a) through (c) 21
Annotated Code of Maryland 22
(2020 Replacement Volume and 2021 Supplement) 23
(As enacted by Section 1 of this Act) 24
BY repealing and reenacting, with amendments, 25
Article – Courts and Judicial Proceedings 26
Section 5–118 27 2 SENATE BILL 992
Annotated Code of Maryland 1
(2020 Replacement Volume and 2021 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – Insurance 4
Section 27–1001(b), (c)(1), (d)(1), and (h)(1) and (2) 5
Annotated Code of Maryland 6
(2017 Replacement Volume and 2021 Supplement) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That Section(s) 3–1701 of Article – Courts and Judicial Proceedings of the Annotated Code 9
of Maryland be renumbered to be Section(s) 3–1702. 10
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 11
as follows: 12
Article – Courts and Judicial Proceedings 13
3–1701. 14
IN THIS SUBTITLE, “INSURER” HAS THE MEANING STAT ED IN § 1–101 OF THE 15
INSURANCE ARTICLE. 16
3–1702. 17
(a) (1) In this [subtitle] SECTION the following words have the meanings 18
indicated. 19
(2) “Casualty insurance” has the meaning stated in § 1–101 of the 20
Insurance Article. 21
(3) “Commercial insurance” has the meaning stated in § 27–601 of the 22
Insurance Article. 23
(4) (i) “Disability insurance” means insurance that provides for lost 24
income, revenue, or proceeds in the event that an illness, accident, or injury results in a 25
disability that impairs an insured’s ability to work or otherwise generate income, revenue, 26
or proceeds that the insurance is intended to replace. 27
(ii) “Disability insurance” does not include payment for medical 28
expenses, dismemberment, or accidental death. 29
(5) “Good faith” means an informed judgment based on hone sty and 30
diligence supported by evidence the insurer knew or should have known at the time the 31
insurer made a decision on a claim. 32
(6) [“Insurer” has the meaning stated in § 1–101 of the Insurance Article. 33 SENATE BILL 992 3
(7)] “Property insurance” has the meaning stated in § 1–101 of the 1
Insurance Article. 2
(b) This [subtitle] SECTION applies only to first–party claims under property and 3
casualty insurance policies or individual disability insurance policies issued, sold, or 4
delivered in the State. 5
(c) (1) Except as provided in paragraph (2) of this subsection, a party may not 6
file an action under this [subtitle] SECTION before the date of a final decision under § 7
27–1001 of the Insurance Article. 8
(2) Paragraph (1) of this subsection does not apply to an action: 9
(i) Within the small claim jurisdiction of the District Court under § 10
4–405 of this article; 11
(ii) If the insured and the insurer agree to waive the requirement 12
under paragraph (1) of this subsection; or 13
(iii) Under a commercial insurance policy on a claim with respect to 14
which the applicable limit of liability exceeds $1,000,000. 15
3–1703. 16
(A) IN THIS SECTION , “THIRD–PARTY CLAIMANT ” MEANS ANY PERSON 17
ASSERTING A CLAIM AG AINST A PERSON INSUR ED UNDER AN AUTOMOBI LE 18
INSURANCE POLICY . 19
(B) THE INSURER FOR AN AUTOMOBILE INSURA NCE POLICY SHALL ACC EPT 20
SERVICE OF PROCESS FROM A THIRD–PARTY CLAIMANT IF : 21
(1) THE PERSON INSURED UN DER THE AUTOMOBILE I NSURANCE 22
POLICY IS DECEASED AND THERE IS NOT AN ESTA TE OF THE PERSON THA T IS OPEN; 23
AND 24
(2) THE THIRD–PARTY CLAIMANT AGREE S TO CAP RECOVERY AT 25
APPLICABLE POLICY LI MITS. 26
5–118. 27
For the purposes of this subtitle, the filing of a complaint with the Maryland 28
Insurance Administration in accordance with § 27–1001 of the Insurance Article shall be 29
deemed the filing of an action under [§ 3–1701] § 3–1702 of this article. 30
Article – Insurance 31 4 SENATE BILL 992
27–1001. 1
(b) This section applies only to actions under [§ 3–1701] § 3–1702 of the Courts 2
Article. 3
(c) (1) Except as provided in paragraph (2) of this subsection, a person may 4
not bring or pursue an action under [§ 3–1701] § 3–1702 of the Courts Article in a court 5
unless the person complies with this section. 6
(d) (1) A complaint stating a cause of action under [§ 3–1701] § 3–1702 of the 7
Courts Article shall first be filed with the Administration. 8
(h) On or before January 1 of each year beginning in 2009, in accordance with § 9
2–1257 of the State Government Article, the Administration shall report to the General 10
Assembly on the following for the prior fiscal year: 11
(1) the number and types of complaints under this section or [§ 3–1701] § 12
3–1702 of the Courts Article from insureds regarding first–party insurance claims under 13
property and casualty insurance policies; 14
(2) the number and types of complaints under this section or [§ 3–1701] § 15
3–1702 of the Courts Article from insureds regarding first–party insurance claims under 16
individual disability insurance policies; 17
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall be construed to 18
apply only prospectively and may not be applied or interpreted to have any effect on or 19
application to any claim that accrues before the effective date of this Act. 20
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 21
October 1, 2022. 22