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§ 18-106. Motor vehicle rental company responsible for vehicle liability insurance policy

West's Annotated Code of MarylandTransportationEffective: January 1, 2020

West's Annotated Code of Maryland
Transportation
Title 18. Vehicle Laws--for-Rent Vehicles (Refs & Annos)
Effective: January 1, 2020
MD Code, Transportation, § 18-106
§ 18-106. Motor vehicle rental company responsible for vehicle liability insurance policy
Currentness
Definitions
(a)(1) In this section the following words have the meanings indicated.
(2) “Authorized driver” means a person, other than the renter, who uses or operates a rental vehicle with the permission of the motor vehicle rental company.
(3) “Motor vehicle rental company” has the meaning stated in § 17-104.3 of this article.
(4) “Rental agreement” has the meaning stated in § 17-104.3 of this article.
Scope of section
(b)(1) Except as provided in paragraph (2) of this subsection, this section applies only to:
(i) Rental vehicle transactions originating in the State; and
(ii) Third-party claims against a renter or an authorized driver of a rental vehicle arising out of the security requirement under § 18-102(a)(2) of this subtitle or § 17-104(e) of this article.
(2) This section does not apply to a replacement vehicle under § 18-102(a)(2) of this subtitle or § 17-104(e) of this article.
In general
(c) A motor vehicle rental company shall be responsible for providing the required security under § 17-103 of this article on a primary basis for a third-party liability claim if the motor vehicle rental company:
(1) Fails to deliver notice of the claim;
(2) Fails to cooperate with the insurer;
(3) Prejudiced the handling of the third-party claim before the insurer assumed the handling of the claim;
(4) Has provided liability, property damage, uninsured motorist, or other coverage to the insured that is applicable to the third-party claim as a benefit under either:
(i) The rental agreement; or
(ii) An insurance policy sold to the renter in connection with, and incidental to, the rental of the motor vehicle; or
(5) Fails to provide the notices required under § 18-102(a)(3) of this subtitle or § 17-104(f) of this article.
Responsibility when driver of rental vehicle is not authorized driver
(d) A motor vehicle rental company shall be responsible for providing the required security under § 17-103 of this article on a primary basis for a third-party liability claim if the driver of the rental vehicle is an individual who is not the renter or an authorized driver.

Credits

Added by Acts 2019, c. 471, § 1, eff. Jan. 1, 2020; Acts 2019, c. 472, § 1, eff. Jan. 1, 2020.
MD Code, Transportation, § 18-106, MD TRANS § 18-106
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document