It is enacted by the General Assembly as follows:

SECTION 1. Section 27-3-51 of the General Laws in Chapter 27-3 entitled "Agents, Brokers and Solicitors" is hereby amended to read as follows:

27-3-51. {DEL Written notice to claimants of payment of claim in third party settlements. -- DEL} {ADD Written notice to claimants of payment of claim in settlements. -- ADD} {DEL (a) DEL} Upon payment of five thousand dollars ($5,000) or more in settlement of any {DEL third party DEL} liability claim, {DEL where the claimant is a natural person, DEL} the insurer shall cause written notice of said payment 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.

SECTION 2. This act shall take effect upon passage.