Code of Maryland Regulations › Title 14 - INDEPENDENT AGENCIES › Subtitle 07 - MARYLAND AUTOMOBILE INSURANCE FUND › Chapter 14.07.04 - Uninsured Persons' Claims for Compensation from the Maryland Automobile Insurance Fund › Section 14.07.04.06 - Settlement of Claims Involving Known Uninsured Motorists

Current through Register Vol. 51, No. 14, July 12, 2024
A. When the
				Fund has received a Notice of Claim, it shall attempt to contact the uninsured
				owner or operator, or both, to investigate the liability and damages on the
				part of the uninsured. It shall also negotiate with claimants to compensate
				them promptly, fairly, and equitably.
B. If a claimant does not arrive at an agreed
				settlement with the Fund, the Fund shall notify the claimant in writing that
				the claimant's only remedy will be to file suit against the uninsured owner or
				operator. The claimant shall show that service has been perfected and a
				judgment has been obtained against the owner or operator, or both the owner and
				operator, of the uninsured vehicle. The Fund may not be a party to the suit
				until the claimant has first obtained a judgment against the uninsured owner or
				operator or unless the Fund elects to intervene as a party. The Fund may not be
				obligated to intervene.
C. The Fund
				may seek to obtain a consent agreement from the uninsured owner or operator in
				the form of either a confessed judgment or confessed judgment promissory note
				before the claimant is paid. If the uninsured does not consent within 60 days,
				then the Fund may not delay its negotiations with a claimant in further efforts
				to obtain the uninsured's consent. In any case, the claimant shall sign a
				proper release and subrogation agreement in favor of the Fund before payment
				can be made.
D. If all parties
				agree to a settlement, the Fund will pay the claimant for the claim when all
				appropriate documents have been executed. If the Fund believes that obtaining a
				prompt judgment against the uninsured is necessary in a particular case, then
				payment may not be made until a final judgment, consent or otherwise, against
				the uninsured has been entered or assigned in favor of the Fund.
E. If the uninsured does not settle with the
				claimant and the Fund, the Fund shall give the uninsured owner or operator
				notice, by certified mail, return receipt requested, to the uninsured owner or
				operator's last known address, as provided for in Insurance Article, §
									20-605, Annotated Code of
				Maryland. After 30 days have passed, the Fund may settle with the claimant or
				require the claimant to proceed to file suit and proceed to trial against the
				uninsured owner or operator. If the Fund elects to settle, the claimant shall
				assign his judgment or causes of action against the uninsured to the Fund and
				agree to cooperate in any suit or trial which the Fund may bring against the
				uninsured. If a claimant does not cooperate at any time during the suit or
				trial, the claimant may be compelled to cooperate by court order.
F. The Fund may assign counsel to represent
				an uninsured owner or operator. The uninsured owner or operator shall cooperate
				with the Fund in the defense of the action. If the uninsured does not
				cooperate, the Fund may apply to the court for an order directing cooperation
				or may send the uninsured owner or operator notice of the Fund's and counsel's
				withdrawal in the manner provided for in Insurance Article, §
									20-606, Annotated Code of
				Maryland, and by rule of court.
G.
				The written notice which the Fund shall give of its proposed settlement or
				payment with the claimant under §E of this regulation shall be as follows:
(1) Content of Notice. The notice shall:
(a) Set forth the amount and all other
				pertinent terms of the proposed settlement or payment, as well as the terms and
				conditions of any repayment which the Fund shall require of the uninsured owner
				or operator;
(b) Advise the
				uninsured owner or operator of the owner or operator's right to contest the
				proposed settlement or payment, as to the owner or operator's liability for the
				accident or the amount of the damages claimed, or both, by informing the Fund
				in writing of the uninsured's objection within 30 days of the date of mailing
				appearing on the notice;
(c) Advise
				the uninsured owner or operator that judgment for the amount of the settlement
				may be entered and enforced against him.