Written notice to claimants of payment of claim in third-party settlements.

(a) Upon payment of $1,000 or more in settlement of a third-party liability claim, if the claimant is a natural person, the insurer shall cause written notice to be mailed to the claimant at the same time payment is made, by the insurer or its representative, including the insurer’s attorney, to the claimant’s attorney or other representative of the claimant by draft, check or otherwise.

(b) Nothing in this subsection will constitute a violation of this chapter if an insurer makes a good faith effort to comply with this section.

(c) A violation of this section will be deemed to occur if an insurer fails to provide the notice to claimants with a frequency that indicates that it is a general business practice.