The law introduces a mandatory written settlement and notice requirement. Any settlement between the injured person or personal representative, any insurer providing liability coverage applicable to the claim, and the underinsured motorist described in subsection K must be in writing, signed by both the injured person or personal representative and the underinsured motorist, and must include a prescribed notice to the motorist that must be initialed. The notice informs the motorist that the liability insurer has agreed to pay its available limits to settle claims on the motorist’s behalf, that the settlement secures a full release and ensures that no judgment can ever be entered against the motorist by the claimant or plaintiff, and that in exchange, the motorist is agreeing to cooperate with the UIM insurer. The notice outlines the cooperation obligations – attending depositions and trial if subpoenaed, assisting with discovery, meeting with defense counsel at reasonable times after commencement of the suit and before testimony at deposition or trial, and notifying the UIM insurer or its defense counsel of any change in address – provided that the UIM insurer or its defense counsel has notified the motorist of its existence and provided contact information.
