Pay to Play Statute in Maryland Underinsured Motorist Claims

Maryland. Insurance Code Ann. § 19-511 gives Maryland accident lawyers a weapon in forcing decide what they are going to do about subrogation against the at-fault defendants. Maryland lawyers call this law the “pay to play” statute. The statute mandates that when the liability carrier tenders a policy limits offer, the underinsured motorist carrier – the client’s own insurance company – has 60 days to whether to allow the at-fault driver’s insurance company to pay on the claim, which means they waive subrogation against the at-fault driver. If they do not waive subrogation, the UIM insurance company must pony up the amount of the offer. But in doing so, they retain their subrogation rights, i.e. they can go after the driver individually for any payments that are made. Thus, the title “pay to play.”