(a) Upon the payment of one hundred dollars ($100) or more in settlement of any third-party liability claim the insurer shall provide written notice to the claimant if both of the following apply:
(1) The claimant is a natural person.
(2) The payment is delivered to the claimant’s lawyer or other representative by draft, check, or otherwise.
(b) For purposes of this section, “written notice” includes providing to the claimant a copy of the cover letter sent to the claimant’s attorney or other representative that accompanied the settlement payment.
(c) This section shall not create any cause of action for any person against the insurer based upon the insurer’s failure to provide the notice to a claimant required by this section. This section shall not create a defense for any party to any cause of action based upon the insurer’s failure to provide this notice.
(Added by Stats. 1994, Ch. 479, Sec. 6. Effective January 1, 1995.)
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