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2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 3 - Purpose and General Provisions › Section 20-304 - Audits

(a)    (1)    An audit committee, composed of members of the Board of Trustees, shall require the Fund’s internal auditor to conduct fiscal compliance and fiscal audits of the accounts and transactions of the Fund each year.
(2)    A fiscal compliance audit shall:
(i)    examine financial transactions and records and internal controls;
(ii)    evaluate compliance with applicable laws and regulations; and
(iii)    examine electronic data processing operations.
(b)    If an independent auditor conducts a fiscal audit of the Fund, the audit committee shall direct the Fund’s internal auditors not to duplicate the fiscal audit for the same period.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 3 - Purpose and General Provisions › Section 20-305 - Notice of Expiration of Policy; Rewritten Policy Quote

(a)    The Fund shall provide each commercial policyholder with a notice stating the expiration date of the current policy at least 45 days before the expiration of the current policy.
(b)    If a commercial policyholder requests a rewritten policy with the Fund and the policyholder’s fund producer is unable to generate a new rewritten policy quote without the assistance of the Fund, the Fund shall provide the policyholder’s fund producer with a rewritten policy quote within 7 days after the Fund has received all necessary information from the fund producer.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 4 - Industry Automobile Insurance Association › Section 20-402 - Composition

(a)    The Association consists of all insurers except for the Fund that are licensed to write on a direct basis motor vehicle liability insurance or motor vehicle physical damage insurance in the State.
(b)    As a condition of its authority to write motor vehicle liability insurance or motor vehicle physical damage insurance in the State, an insurer must be and remain an Association member.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 4 - Industry Automobile Insurance Association › Section 20-403 - Board of Directors

(a)    There is a Board of Directors to administer the Association.
(b)    (1)    The Board of Directors consists of nine members elected by Association members.
(2)    Of the nine members of the Board of Directors:
(i)    four shall be nominated by the American Property Casualty Insurance Association;
(ii)    one shall be associated with a domestic insurer that is not affiliated with the American Property Casualty Insurance Association;
(iii)    two may not be affiliated with a member company of the American Property Casualty Insurance Association or with a domestic insurer that is otherwise represented on the Board of Directors; and
(iv)    two shall be nominated by the members of the Board of Directors selected under items (i) through (iii) of this paragraph.
(3)    The term of a member of the Board of Directors is 1 year.
(4)    If the American Property Casualty Insurance Association fails to submit the name of a nominee at least 10 days before the election, the requirement that four directors be from among nominees of that group need not be met for that year.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 4 - Industry Automobile Insurance Association › Section 20-404 - Certification of Operating Loss and Assessment Limit

(a)    On or before March 15 of each year, the Fund shall determine and the Board of Trustees shall certify to the Board of Directors the information required under subsections (b) and (c) of this section.
(b)    Subject to subsection (f) of this section, the following information certified to the Board of Directors shall be separately identified by commercial auto and private passenger auto results:
(1)    the statutory operating loss for the immediately preceding calendar year;
(2)    a calculation to yield a private passenger auto assessment limit that is determined by subtracting the year–end total surplus of the Fund for the immediately preceding calendar year from an amount equal to 25% of the average of net direct written private passenger auto premiums of the Fund for each of the three immediately preceding calendar years; and
(3)    a calculation to yield a commercial auto assessment limit that is determined by subtracting the year–end commercial auto surplus of the Fund for the immediately preceding calendar year from an amount equal to 25% of the average of net direct written commercial auto premiums of the Fund for each of the 3 immediately preceding calendar years.
(c)    The assessment certified to the Board of Directors shall be equal to:
(1)    subject to subsection (d) of this section, the assessment limit, if the assessment limit is less than or equal to the statutory operating loss; or
(2)    the statutory operating loss, if the assessment limit is greater than the statutory operating loss.
(d)    If the calculation under subsection (b)(2) of this section yields a number that is less than or equal to zero, the assessment limit is zero.
(e)    The statutory operating loss or assessment certified to the Board of Directors may not include:
(1)    assessment money received for a prior year; or
(2)    money transferred between the commercial auto and private passenger auto divisions within the Fund.
(f)    In a calculation made under this section, income or expenses not clearly attributable to either commercial auto or private passenger auto may be allocated pro rata for that year.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 4 - Industry Automobile Insurance Association › Section 20-406 - Authorization to Impose Assessment Surcharges

(a)    (1)    The Commissioner promptly shall review the assessment allocation percentages calculated by the Association.
(2)    Unless the Commissioner finds the calculation to be inaccurate, the Commissioner shall authorize each Association member to impose an assessment surcharge on each policy of motor vehicle liability insurance or motor vehicle physical damage insurance that is written or renewed in the State during the 1-year period beginning on the next July 1 following notice of the assessment.
(3)    Subject to § 20-407 of this subtitle, the assessment surcharge shall be calculated by applying the appropriate assessment allocation percentage that is adjusted for any excess or shortfall to the premium at the inception or renewal of the policy.
(4)    The assessment surcharge may not be:
(i)    subject to change or refund; or
(ii)    considered premium income for the State premium tax or the payment of commissions.
(b)    (1)    In conformity with §§ 20-405 through 20-409 of this subtitle, each year the Fund shall impose an assessment surcharge on all of its policyholders as if the Fund were a member of the Association.
(2)    The Fund may not make a payment to the Insufficiency Assessment Reserve Fund.
(3)    The Fund shall account separately for the assessment surcharges that the Fund assesses and receives.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 4 - Industry Automobile Insurance Association › Section 20-407 - Election to Impose Assessment Surcharges

(a)    On or before June 30 of each year, each Association member shall elect whether to recoup its share of the assessment for the immediately preceding year by imposing an assessment surcharge, where appropriate, on each of the Association member’s commercial auto policyholders or private passenger auto policyholders, or both.
(b)    An Association member that does not elect on or before June 30 to recoup its share of an assessment is considered to have recouped that assessment and to have waived its option to impose an assessment surcharge on its policyholders.
(c)    (1)    This section does not deny an Association member the right to:
(i)    absorb an annual assessment; or
(ii)    recover all or part of an annual assessment as costs in rate filings made under this article.
(2)    An Association member that recovers assessments as costs in rate filings shall identify the assessment on any premium billing to the policyholder.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 4 - Industry Automobile Insurance Association › Section 20-408 - Collection of Assessment Surcharges

(a)    (1)    Each Association member shall apply and collect any assessment surcharge that the Association member elects to recoup under § 20-407 of this subtitle.
(2)    Policyholders of an Association member shall receive any excess surcharge credits and may be charged for any surcharge shortfall that the Association member receives from or is charged by the Association.
(b)    (1)    If an Association member elects on or before June 30 to recoup its share of an assessment, the Association member must identify clearly the assessment surcharge imposed on its policyholders by stating on the premium billing of each policyholder: “Recoupment of MAIF assessment, $_____”.
(2)    No other statement may accompany the premium billing.
(c)    Each Association member shall:
(1)    report quarterly to the Association; and
(2)    require an officer of the Association member to certify, in the manner required by the Board of Directors, that any amounts collected and paid are an accurate accounting of the assessment surcharges of the Association member.
(d)    (1)    Each Association member may keep separate and detailed records of any expenses actually incurred that are directly attributable to collection of the assessment surcharge authorized under subsection (a) of this section.
(2)    The Commissioner shall consider verified and relevant expenses to be appropriate cost items in a subsequent rate filing by the Association member.
(e)    If a policyholder fails to pay the assessment surcharge when due, the Association member may cancel the policy in accordance with the terms of the policy for nonpayment of premium.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 4 - Industry Automobile Insurance Association › Section 20-409 - Adjustments to Assessment Surcharges

(a)    If the aggregate amount of assessment surcharges received by an Association member during a surcharge year is less than that Association member’s assessment payment, the Association member’s assessment surcharge authorized under § 20-406 of this subtitle shall be increased accordingly for the next appropriate surcharge year.
(b)    If the aggregate amount of assessment surcharges received by an Association member during a recoupment year exceeds the Association member’s assessment payment, the Association member shall deposit the excess in the Insufficiency Assessment Reserve Fund as provided in § 20-410 of this subtitle and shall receive a credit for the amount deposited against the next appropriate assessment imposed under this subtitle.
(c)    The Association may adjust the annual assessment allocation percentage for an Association member to reflect any surcharge excess or shortfall for the previous applicable surcharge year.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 4 - Industry Automobile Insurance Association › Section 20-410 - Insufficiency Assessment Reserve Fund

(a)    There is an Insufficiency Assessment Reserve Fund.
(b)    The Insufficiency Assessment Reserve Fund shall be maintained by the Association and shall consist of:
(1)    payments of assessment surcharges collected by the Association to cover any actual operating loss that the Fund sustains;
(2)    any gross excess surcharges received by an Association member on account of an assessment made under this subtitle; and
(3)    the full amount of the income from assessment payments and gross excess surcharges in investments.
(c)    (1)    Except as provided in paragraph (2) of this subsection, the Association shall hold money of the Insufficiency Assessment Reserve Fund in trust in a separate interest-bearing account in a financial institution in the State for the use of the Fund.
(2)    The Association may authorize the financial institution where the money is deposited to invest all or part of the money in investments allowed for casualty insurers, as provided in §§ 5-601 through 5-609 of this article.
(d)    An Association member shall deposit with the Association any gross excess surcharges received because of a future assessment not later than October 15 after the surcharge year in which the gross excess surcharge was received.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 4 - Industry Automobile Insurance Association › Section 20-411 - Status of Money Received by Fund

(a)    All money that the Fund receives from the Association to pay an assessment during the calendar year shall be considered a direct contribution to surplus for purposes of the annual statement.
(b)    (1)    The Fund shall include in its annual statement to the Commissioner an accounting of all money received during the preceding calendar year from the Insufficiency Assessment Reserve Fund.
(2)    When filing a rate with the Commissioner, the Fund may not consider money that is received from or that remains in the Insufficiency Assessment Reserve Fund.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-501 - "Covered Vehicle" Defined

(a)    In this subtitle, “covered vehicle” means a vehicle for which the Fund is required to provide coverage under this subtitle.
(b)    “Covered vehicle” includes:
(1)    any motor vehicle required to be registered under Title 13 of the Transportation Article;
(2)    a moped; and
(3)    a motor scooter.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-503 - Contents of Policies

(a)    Each policy issued by the Fund shall contain the minimum coverages required under Title 19, Subtitle 5 of this article and may contain other provisions determined by the Executive Director and approved by the Board of Trustees and the Commissioner.
(b)    At the time a policy of private passenger auto liability insurance is issued to an applicant, the Fund shall include in the policy a written notice to the applicant that contains the following disclosures:
(1)    the time and the conditions under which the applicant is eligible to seek insurance from an Association member;
(2)    that if the applicant seeks insurance from an Association member, the Association member may not refuse to underwrite the private passenger auto liability insurance risk solely because the applicant or named insured previously obtained insurance from the Fund; and
(3)    that if the applicant seeks insurance from an Association member and the Association member refuses to underwrite the applicant solely because the applicant or named insured previously obtained insurance from the Fund, the applicant may file a complaint with the Commissioner against that Association member.
(c)    Whenever the Fund issues a policy of commercial auto liability insurance under this subtitle, the Fund:
(1)    may provide coverages in addition to and in excess of the minimum coverages required by Title 19, Subtitle 5 of this article and by Title 17 of the Transportation Article; but
(2)    is not required to provide coverages in addition to and in excess of the required minimum coverages except to the extent that reinsurance for the additional or excess coverage is available and acceptable to the Fund.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-504 - Add-on Coverage

(a)    (1)    In this section, “add–on coverage” means coverages or services sold in connection with a policy issued by the Fund, other than coverages authorized to be offered by the Fund under this subtitle.
(2)    “Add–on coverage” includes:
(i)    rental reimbursement coverage;
(ii)    personal effects theft coverage;
(iii)    collision and comprehensive deductible waiver coverage, other than collision and comprehensive coverages provided by the Fund or other authorized insurers;
(iv)    supplemental hospital benefit coverage;
(v)    emergency living expense coverage;
(vi)    vehicle towing coverage;
(vii)    emergency vehicle repair service coverage; and
(viii)    motor club services.
(3)    “Add–on coverage” does not include fire, life, and health insurance coverages that are not directly related to the underlying motor vehicle insurance coverage and are written by an authorized insurer.
(b)    (1)    At the time coverage provided by the Fund is bound and before any add–on coverage is sold, a fund producer shall provide a clear and conspicuous written disclosure, in the form approved by the Commissioner, that:
(i)    states that the cost of add–on coverage is not part of the premium for the related policy issued by the Fund;
(ii)    includes an itemized list of any add–on coverages to be sold to the insured;
(iii)    states the nature and cost of each add–on coverage to be sold; and
(iv)    states that add–on coverage is optional and is not required under § 17–103 of the Transportation Article.
(2)    Before an insured may purchase add–on coverage, the insured shall expressly consent to the purchase by signing the disclosure form.
(c)    On continuation of a policy that includes add–on coverage, an insured need not sign a disclosure form if:
(1)    the number and type of add–on coverages under the continuation do not change from the preceding policy; and
(2)    the insured has signed the original disclosure form.
(d)    (1)    A fund producer may not:
(i)    require an insured or prospective insured to purchase an add–on coverage as a condition to purchasing the related policy issued by the Fund; or
(ii)    sell add–on coverage or any combination of add–on coverages in an amount that exceeds $200 per covered vehicle in connection with a private passenger auto insurance policy.
(2)    A pattern or practice of violations of this section by a fund producer is subject to the same penalties as a violation of § 20–513 of this subtitle.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-505 - Claims Against Fund -- Resolution; Recording of Relevant Conversations

(a)    The Executive Director shall settle, compromise, or defend claims against the Fund.
(b)    Notwithstanding § 9-602 of the Criminal Law Article, the Executive Director may authorize an employee of the Fund to record a telephone conversation with a policyholder, witness, claimant, investigating officer, or other interested party if:
(1)    the conversation is relevant to an accident or claim;
(2)    the party to be recorded has or might have information that is relevant to the accident or claim; and
(3)    before recording, the party to be recorded is advised of and consents to the recording.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-506 - Reserves for Payment of Claims

(a)    The Executive Director shall:
(1)    establish and maintain reasonable and adequate reserves for payment of claims against the Fund; and
(2)    use the same criteria as is required for use by an Association member in determining the amount of reserves that are necessary.
(b)    At least annually, the Board of Trustees shall review the reasonableness and adequacy of reserves.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-508 - Effect of 3 Years Without Violation or Accident

(a)    A policyholder is entitled to continuation of coverage from the Fund at rates that are reasonably comparable to those charged by standard insurers and approved by the Commissioner if, for 3 continuous years of coverage under a policy issued by the Fund, the policyholder has not:
(1)    been charged with a moving traffic violation;
(2)    had a chargeable traffic accident; and
(3)    been assessed more than one point by the Motor Vehicle Administration.
(b)    A policyholder who meets the requirements of subsection (a) of this section is not entitled to a safe driver credit as defined in the rules and rate schedules of the Fund filed with the Commissioner.
(c)    In determining eligibility for rates that are reasonably comparable to those charged by standard insurers, the Fund may not consider:
(1)    a lapse in coverage of 30 days or less; and
(2)    the addition of a driver to the policy who has certified in a manner approved by the Fund for the immediately preceding 3 continuous years that the driver has not had a moving traffic violation, has not been assessed more than one point, and has not had a chargeable traffic accident.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-509 - Authority of Producers to Bind Coverage

(a)    (1)    Subject to this section and the policies adopted by the Board of Trustees that relate to the binding of coverage, a fund producer may bind the minimum required coverage for an applicant in the Fund if the applicant submits an application to the fund producer and pays the appropriate premium.
(2)    To effect coverage, the fund producer must receive payment of the appropriate premium required under the policies adopted by the Board of Trustees that relate to the binding of coverage.
(3)    Payment of the appropriate premium does not occur so as to effect coverage if payment of all or part of the premium is made by an instrument that is later dishonored.
(b)    (1)    The Board of Trustees shall adopt and make available to each fund producer reasonable policies that relate to the authority of fund producers to bind coverage.
(2)    The policies shall include:
(i)    the amount of premium to be collected;
(ii)    the evidence necessary to establish the qualification of an applicant to be insured by the Fund;
(iii)    procedures for notifying the Fund of the binding of coverage; and
(iv)    the time within which the fund producer is to give notice.
(c)    The Fund:
(1)    may refuse to grant the authority of a fund producer to an insurance producer that has been previously terminated as a fund producer or that has had its license previously revoked or surrendered; and
(2)    subject to the hearing provisions of § 20-514 of this subtitle, may discipline a fund producer that:
(i)    employs or otherwise retains a person described in item (1) of this subsection; and
(ii)    allows the person to become involved in the fund producer’s operations or management contrary to a requirement of this article or order of the Administration.
(d)    Subject to subsection (e) of this section, the Fund is liable for coverage from the date that the fund producer binds coverage.
(e)    (1)    On review of an application, the Fund may cancel coverage and refuse to issue a policy if the Fund finds that:
(i)    the applicant is not qualified for insurance issued by the Fund;
(ii)    the applicant has not paid the appropriate premium; or
(iii)    the Fund is authorized to reject the application under § 20-516 of this subtitle.
(2)    Cancellation of coverage may occur not later than 60 days after coverage is effective.
(f)    Whenever coverage is canceled:
(1)    the Fund promptly shall notify the applicant, fund producer, and Motor Vehicle Administration of the cancellation;
(2)    the applicant has the right of appeal under § 20-517 of this subtitle; and
(3)    if the cancellation occurred because an applicant did not pay the appropriate premium, the Fund shall give the applicant a reasonable opportunity to pay the appropriate premium.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-510 - Fiduciary Duties of Producer

(a)    Each fund producer is a fiduciary as to all premiums, return premiums, or other money that the fund producer receives from any person in connection with a policy or policy application issued by, to be issued by, or bound in the Fund.
(b)    Each fund producer shall deposit as trust money into an account for premiums all money received under subsection (a) of this section to be accounted for and paid over to the Fund as the law requires.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-511 - Surety Bond

(a)    (1)    On application to the Fund for appointment as a fund producer, an applicant shall file with the Fund a bond for the benefit of the Fund for the balance of the current year.
(2)    On or before December 31 of each year, each fund producer shall file with the Fund a bond for the benefit of the Fund for the next succeeding year.
(b)    A bond required under this section shall be:
(1)    in the amount of $10,000;
(2)    executed by an authorized surety insurer; and
(3)    conditioned that the fund producer will account for and pay over to the person entitled to it all money belonging to the person that comes into the fund producer’s possession in accordance with this subtitle and the regulations that relate to the binding of coverage.
(c)    (1)    A fund producer is considered to have complied with this section if an Association member certifies to the Fund that:
(i)    the Association member has a bond in effect that covers the fund producer and complies with the requirements of this section; and
(ii)    the bond coverage extends to the Fund when persons apply to the Fund for coverage through the fund producer.
(2)    The certification shall be made by an authorized representative of the Association member.
(3)    A copy of the certification shall be mailed promptly to the Fund.
(d)    A fund producer’s authority to bind coverage in the Fund may be terminated on 10 days’ written notice if the bond is not:
(1)    filed with the Fund in a timely manner; or
(2)    continuously maintained in effect while the fund producer has authority to bind coverage in the Fund.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-512 - Payment of Commission to Producer

(a)    Except as provided in subsection (b) of this section, the Fund shall pay to a fund producer of a policyholder to whom a policy is issued a commission:
(1)    for private passenger auto insurance issued by the Fund, at a rate determined by the Fund but not less than 10% and not to exceed 15% of the total premium; and
(2)    for any other insurance issued by the Fund, at a rate determined by the Fund but not to exceed 10% of the total premium.
(b)    The Fund may not pay a commission:
(1)    on a fully earned basis;
(2)    if a prospective insured fails to qualify under § 20–502 of this subtitle; or
(3)    if a prospective insured’s initial payment to the Fund, a fund producer, or premium finance company is not honored.
(c)    If a policy issued by the Fund is canceled, the Fund shall refund any unearned commissions.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-513 - Actions Against Producers -- in General

The Fund may refuse to accept further applications from a fund producer or may terminate the authority of the fund producer to bind coverage or both if:
(1)    the Fund finds that the fund producer has engaged in the practice of binding coverage in the Fund in violation of policies adopted by the Board of Trustees; or
(2)    after demand has been made by the Fund, the fund producer fails to pay money owed the Fund as a result of:
(i)    the binding or change of coverage; or
(ii)    a commission paid to the fund producer on a policy that is canceled after the effective date of coverage.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-514 - Actions Against Producers -- Notice and Hearing

(a)    Except as provided in subsection (b) of this section, the Fund shall give prior written notice to a fund producer of its intended action under § 20–513 of this subtitle and give the fund producer an opportunity for a hearing before taking the action.
(b)    (1)    The Fund may exercise immediately any option under § 20–513 of this subtitle if the Fund determines that there is a likelihood of substantial and immediate harm to the Fund, its policyholders, or others because of:
(i)    a violation of a policy adopted by the Board of Trustees that relates to the binding of coverage; or
(ii)    a failure to pay money owed.
(2)    After taking an action under § 20–513 of this subtitle, the Fund promptly shall give notice to the fund producer and hold a hearing within 10 working days before a member of the Board of Trustees.
(c)    The Board of Trustees shall adopt policies to provide procedures for notice and hearings under this section.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-515 - Recovery of Money Owed to Fund

(a)    The Fund may use the Maryland Tax Refund Intercept Program to recover money owed to the Fund by a fund producer if the Fund makes a demand for the money and the fund producer does not make payment.
(b)    (1)    If the Fund makes payment to a claimant, the Fund is subrogated to the rights of the claimant against a responsible party and is entitled to recover all money that the Fund paid out and actual collection costs, including reasonable attorney’s fees.
(2)    The Fund may recover from its insureds all past-due premiums and from the responsible party all money that the Fund paid out under this subtitle in any manner provided by law, including the Maryland Tax Refund Intercept Program.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-516 - Grounds for Rejection or Cancellation of Insurance

(a)    Subject to § 20-517 of this subtitle, the Fund:
(1)    may reject an application of insurance if the applicant owes to the Fund an unpaid premium on an expired or canceled policy;
(2)    at any time may cancel a policy for nonpayment of premiums; or
(3)    may reject an application of insurance or at any time may cancel a policy if it is found that the driver’s license of the applicant or policyholder is:
(i)    suspended, unless the suspension is for a first offense under § 16-205.1 of the Transportation Article for driving with an alcohol concentration of 0.08 or more; or
(ii)    revoked.
(b)    The Fund shall notify the applicant or policyholder promptly after the Fund rejects an application or cancels a policy.
(c)    If a person does not have a valid license or other privilege to drive a covered vehicle in the State, or is otherwise ineligible to be insured by the Fund, the Fund may issue the appropriate policy with an excluded driver endorsement under § 27-609 of this article.
(d)    (1)    The Fund may cancel a policy if:
(i)    the temporary registration issued for the covered vehicle under § 13-405 or § 23-107(b) of the Transportation Article has expired; and
(ii)    the covered vehicle is not otherwise validly registered in the State.
(2)    The cancellation may not take effect until the day after the temporary registration of the covered vehicle expires.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-517 - Appeal of Rejection or Cancellation of Insurance

(a)    An applicant whose application for insurance has been rejected or a policyholder whose policy has been canceled for a reason other than nonpayment of premiums may appeal the decision to a special board within 10 days after receipt of notice of the rejection or cancellation.
(b)    (1)    The special board consists of two members of the Board of Trustees and the Commissioner or designee of the Commissioner.
(2)    The Executive Director may not sit on the special board.
(c)    (1)    The special board:
(i)    may affirm, reverse, or modify the decision on the record; or
(ii)    on at least 10 days’ written notice to the applicant, may hold a hearing and then affirm, reverse, or modify the decision.
(2)    The current policy of a policyholder who appeals the decision to the special board remains in effect until the special board decides the appeal.
(d)    The Fund shall notify the Motor Vehicle Administration immediately after:
(1)    the Fund cancels a policy or terminates coverage of an insured; or
(2)    the Fund rejects an application for insurance and the action is final because:
(i)    the rejection was not appealed to the special board; or
(ii)    the special board does not reverse or modify the decision to cancel as to require issuance of a policy.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-518 - Effect of Driving Record on Insurability

(a)    (1)    The Executive Director shall refer the status of an insured’s driver’s license to the Motor Vehicle Administration for a determination whenever the Executive Director finds that the insured, in the last 12-month period, had three or more chargeable accidents under the rules and rate schedules of the Fund filed with the Commissioner involving third-party liability, regardless of the number of points assessed for those accidents.
(2)    The Executive Director may refer any other matter about an insured’s driving record to the Motor Vehicle Administration for a determination.
(b)    If, after a hearing, the Motor Vehicle Administration suspends or revokes the insured’s driver’s license, the Executive Director shall cancel or refuse to continue the coverage after having given the notice required under § 27-602 of this article.
(c)    If the Motor Vehicle Administration does not suspend or revoke the insured’s driver’s license under subsection (b) of this section, the Executive Director may not cancel or refuse to continue the coverage of the insured.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-519 - Continuation of Coverage of Family Members on Exclusion of Policyholder

If a policy covers a spouse or other household member of the family of the policyholder:
(1)    cancellation of the policy of an insured whose driver’s license is suspended or revoked does not result in the cancellation of the coverage of the spouse or other family member whose driver’s license is not suspended or revoked; and
(2)    the Fund shall reclassify the rate of risk of the spouse or other family member for the purpose of setting the premium.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 5 - Policies for Covered Vehicles › Section 20-520 - Refusal to Issue Policy Prohibited

(a)    Except as provided in subsection (b) of this section, an insurer that issues, sells, or delivers private passenger motor vehicle insurance in the State may not refuse to issue a policy of private passenger motor vehicle insurance to any person who, for the immediately preceding 3 continuous years:
(1)    has been insured by the Fund;
(2)    has not had a moving traffic violation; and
(3)    has not had a chargeable traffic accident.
(b)    Subject to § 27-501 of this article, an insurer may refuse to issue a policy under subsection (a) of this section if the person does not satisfy the insurer’s eligibility or underwriting standards.
(c)    A person who is entitled to insurance under subsection (a) of this section:
(1)    shall be rated by the insurer in the same manner as any other policyholder not previously insured by the Fund having the same risk characteristics; and
(2)    may not be surcharged or rated by the insurer solely because the person was insured by the Fund.
(d)    (1)    At least 60 days before expiration or renewal of a policy of private passenger motor vehicle insurance, the Fund shall provide written notice to each person entitled to insurance under subsection (a) of this section.
(2)    The notice shall:
(i)    inform the person of the person’s right to insurance under subsection (a) of this section;
(ii)    advise the person to contact the fund producer that bound the person’s coverage with the Fund during the most recent coverage period;
(iii)    include a copy of a sample rate guide produced by the Administration; and
(iv)    provide the toll-free telephone number established under § 2-109 of this article.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 6 - Unsatisfied Claims › Section 20-602 - Limitation on Amounts Payable From Fund

(a)    The maximum amount payable from the Fund, exclusive of interest and costs, for claims filed under this subtitle arising from one accident is:
(1)    $30,000 on account of injury to or death of one individual;
(2)    subject to the limit specified in item (1) of this subsection, $60,000 on account of injury to or death of more than one individual; and
(3)    $15,000 for damages to property.
(b)    (1)    The following deductions shall be made from the smaller of the applicable maximum amount under subsection (a) of this section and the amount of the judgment:
(i)    $250 from a judgment or part of a judgment for damages to property; and
(ii)    the total amount that the claimant has received or is likely to receive:
1.    from any source toward payment of the settlement or judgment;
2.    toward payment of a judgment against a person against whom the claimant has a cause of action, arising out of the same accident, for damages for bodily injury or death or damage to property;
3.    under a policy affording indemnity for damage to or destruction of property of the applicant; and
4.    by reason of the accident out of which the claim arises under any workers’ compensation law.
(2)    For the purposes of this subtitle, medical, hospital, funeral, or other benefits paid or payable for the applicant under the Maryland Workers’ Compensation Act shall be considered to be received or receivable by the claimant.
(c)    The Fund may recover any amount paid out of the Fund that exceeds the amount authorized under this subtitle by bringing an action against the person that received the excess payment.
(d)    (1)    Notwithstanding any workers’ compensation law or similar law to the contrary, whenever the amount of a payment by the Fund has been reduced by the amount of benefits paid or to be paid in accordance with a workers’ compensation law or similar law, the employer of an injured person or decedent and the insurer of that employer is not entitled to a lien on payment from the Fund.
(2)    Workers’ compensation benefits may not be reduced because of the reduced payment from the Fund.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 6 - Unsatisfied Claims › Section 20-603 - Notice of Claim

(a)    (1)    Except as provided in paragraph (2) of this subsection, notice of a claim for damages must be filed with the Fund within 180 days after the accident out of which the cause of action arises before a person may apply or sue for payment from the Fund under this subtitle.
(2)    If notice of a claim is not filed within the time required under paragraph (1) of this subsection, a claim or suit may not be filed or maintained unless the claimant provides proof:
(i)    that the claimant was physically incapable of filing notice within the time required and filed notice within 30 days after becoming physically capable of doing so or, if the claimant did not become capable of filing notice, that a notice was filed for the claimant within a reasonable period;
(ii)    that the claimant filed notice within 30 days after having received notice that an insurer had disclaimed on a policy and thus removed or withdrew liability insurance coverage for the claim against a defendant; or
(iii)    that the claimant gave the notice required under paragraph (1) of this subsection within 30 days after receiving notice that the insurer of the defendant was insolvent if:
1.    the insurer of the defendant is not authorized to transact insurance business in the State; and
2.    the claimant is not eligible to make a claim against the Property and Casualty Insurance Guaranty Corporation.
(b)    The notice of a claim shall contain:
(1)    evidence that the claimant:
(i)    has fulfilled all requirements to file a claim; and
(ii)    is not eligible for uninsured motorist coverage benefits from a policy issued to the claimant or a family member who resides in the claimant’s household;
(2)    certification by the claimant’s employer of all lost wages incurred up to the filing of notice of a claim;
(3)    evidence of all medical expenses incurred up to the filing of notice of a claim;
(4)    all reports of medical treatment and consultation for injuries sustained;
(5)    evidence of all other damages claimed up to the filing of the notice of claim;
(6)    all available police or other accident reports; and
(7)    additional information that the Executive Director requires by regulation.
(c)    To the extent practicable, information required in notice of a claim shall be submitted in one filing.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 6 - Unsatisfied Claims › Section 20-604 - Resolution of Claims

(a)    (1)    The Executive Director shall adopt regulations and the Court of Appeals shall adopt rules that set forth procedural requirements for claims and actions against the Fund filed under this subtitle.
(2)    Before the Fund becomes liable under this subtitle, a claimant must comply with each procedural requirement for claims and actions against the Fund.
(3)    On behalf of the Fund, the Executive Director or designee of the Executive Director may stipulate that the procedural requirements have been met and consent to the claimant bringing an action against the Fund.
(4)    A stipulation or consent does not waive any defense that the Fund may have with respect to the case.
(b)    (1)    At any time and without filing a petition for payment or other court approval, the Fund may settle, compromise, and pay claims and actions brought and judgments obtained under this subtitle.
(2)    The Executive Director shall adopt regulations setting forth the procedure for settlement or payment.
(3)    Interest shall accrue from the date of judgment in accordance with § 11-107 of the Courts Article.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 6 - Unsatisfied Claims › Section 20-605 - Settlement Offers

(a)    (1)    After the Fund negotiates with a plaintiff or claimant a settlement offer that the Fund finds reasonable, the Fund shall give notice to the defendant or uninsured party of the offer in accordance with regulations of the Fund.
(2)    If a defendant or uninsured party approves the settlement offer, the plaintiff or claimant shall proceed to settlement in accordance with regulations of the Fund and the Maryland Rules.
(b)    (1)    If a defendant or uninsured party rejects a settlement offer, the Fund shall cause notice to be served on the defendant or uninsured party by any lawful manner, including:
(i)    a sheriff;
(ii)    a private process server; and
(iii)    certified mail bearing a postmark from the United States Postal Service to the last known address of the defendant or uninsured party or the last address on file with the Motor Vehicle Administration of this State or the state where the defendant or uninsured was last known to reside.
(2)    The notice served under this subsection shall state that:
(i)    without further notice, the Fund will withdraw from the claim or action 30 days after the date of the notice;
(ii)    within 30 days after the date of the notice, an appearance may be entered by the defendant or uninsured party or by defense counsel whom the defendant or uninsured party chooses; and
(iii)    if the provisions of item (ii) of this paragraph are not met, at any time after 30 days following the date of the notice and without further notice, suit may be filed or judgment may be entered against the defendant or uninsured party in the amount of the settlement offer.
(c)    After the end of the 30-day period following notice served to a defendant or uninsured party under subsection (b) of this section, the Fund may settle the claim, file suit, or request the court to set the action for an expedited hearing.
(d)    At a hearing authorized under subsection (c) of this section, the court may proceed in a summary manner and, if satisfied that each applicable provision of this title has been met, enter judgment in favor of the plaintiff or Fund in the amount of the settlement offer.
(e)    (1)    The defendant or uninsured party may file an appeal within 10 days after the date of entry of the judgment.
(2)    Absent proof of fraud, mutual mistake, or obvious irregularity, the judgment is not subject to appeal, amendment, or other action of the court after the period for filing an appeal has expired.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 6 - Unsatisfied Claims › Section 20-606 - Authority of Fund to Defend Claims; Cooperation of Defendant

(a)    When a claim subject to this subtitle results in a default judgment that is entered for want of a plea by a defendant other than the Fund, or in a judgment that is entered with the consent of the defendant without the knowledge and approval of the Fund, the Fund shall answer or apply for relief against the judgment and for permission to answer and defend the claim within 30 days after receipt of actual notice of the judgment.
(b)    (1)    The Fund may elect to intervene in or defend a claim subject to this subtitle.
(2)    The Fund is entitled to each defense that would have been or is available to the uninsured owner or driver.
(c)    (1)    A defendant shall cooperate with the Fund in defense of a claim in which the Fund has intervened under this subtitle.
(2)    If the defendant fails to cooperate, the Fund may apply to the court for an order that directs cooperation or proceed as provided under this subtitle.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 6 - Unsatisfied Claims › Section 20-607 - Judicial Review

An appeal to the appropriate court may be taken from a final order, decree, or judgment of a court made under this subtitle:
(1)    that debars a claimant from further proceeding against the Fund or denies the claim;
(2)    that awards the claimant less than that to which the claimant believes the claimant is entitled; or
(3)    except as provided in § 20-605 of this subtitle, that causes the defendant, the uninsured party, the Fund, or other party to be aggrieved.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 6 - Unsatisfied Claims › Section 20-608 - Recovery of Money Paid by Fund; Indexing of Judgments

(a)    All money paid out by the Fund under this subtitle may be recovered by the Fund from the uninsured party at fault in any manner provided by law, including the Maryland Tax Refund Intercept Program.
(b)    A judgment that is assigned to or obtained by the Fund:
(1)    is considered in its entirety as taken for the use of the State; and
(2)    shall be indexed in the appropriate court records in the name of the State of Maryland, Maryland Automobile Insurance Fund.
(c)    If the Fund brings suit to enforce a judgment obtained under this subtitle against an uninsured party at fault, the Fund may recover the actual costs of collection, including reasonable attorney’s fees.