§ 19-520. Peer-to-peer car sharing program
West's Annotated Code of MarylandInsuranceEffective: July 1, 2018
Effective: July 1, 2018
MD Code, Insurance, § 19-520
§ 19-520. Peer-to-peer car sharing program
(10) “Peer-to-peer car sharing program agreement” means the written terms and conditions applicable to a shared vehicle owner and a shared vehicle driver that govern the use of a shared vehicle through a peer-to-peer car sharing program under the provisions of this section and Title 18.5 of the Transportation Article.
(b)(1) Solely on the basis that a motor vehicle is shared through a peer-to-peer car sharing program:
(c)(1)(i) Except as provided in subparagraph (ii) of this paragraph, a peer-to-peer car sharing program shall assume the liability of a shared vehicle owner for any bodily injury or property damage to third parties or uninsured and underinsured motorist or personal injury protection losses during the car sharing period in an amount stated in the peer-to-peer car sharing program agreement, which amount may not be less than the minimum amount of security required under § 17-103 of the Transportation Article.
(ii) Except for the minimum security required under § 17-103 of the Transportation Article for any injured person who did not make the intentional or fraudulent misrepresentation, the assumption of liability under paragraph (1) of this subsection does not apply if the shared vehicle owner made an intentional or fraudulent material misrepresentation to the peer-to-peer car sharing program before the car sharing period in which the loss occurred.
(ii) limits the ability of the peer-to-peer car sharing program to, by contract, seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the peer-to-peer car sharing program agreement.
(i) any right of the peer-to-peer car sharing program to seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the peer-to-peer car sharing program agreement;
(iii) that the peer-to-peer car sharing program's insurance coverage on the shared vehicle owner and the shared vehicle driver is in effect only during each car sharing period and that, for any use of the shared motor vehicle by the shared vehicle driver after the car sharing termination time, the shared vehicle driver and the shared vehicle owner should contact the shared vehicle driver's or the shared vehicle owner's insurer about insurance coverage;
(iv) that the peer-to-peer car sharing program's motor vehicle liability insurance policy may be exclusive for the shared vehicle owner and is primary for the shared vehicle driver, but may be secondary for the shared vehicle driver if the shared motor vehicle is used as a replacement vehicle, as defined in § 18.5-102(a)(2)(i) of the Transportation Article; and
(4) At the time when a vehicle owner registers as a shared vehicle owner on a peer-to-peer car sharing program and prior to the time when the shared vehicle owner makes a shared motor vehicle available for car sharing on the peer-to-peer car sharing program, the peer-to-peer car sharing program shall notify the shared vehicle owner that, if the shared motor vehicle has a lien against it, the use of the shared motor vehicle through a peer-to-peer car sharing program, including use without physical damage coverage, may violate the terms of the contract with the lienholder.
(d)(1) A peer-to-peer car sharing program shall ensure that, during each car sharing period, the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability insurance policy that:
(ii) A peer-to-peer car sharing program may own and maintain as the named insured one or more policies of motor vehicle liability insurance that provides coverage in the amount of, in excess of, or optional to the minimum amount of coverage required to be provided under paragraph (1) of this subsection, including coverage for:
(iii) An offer by a peer-to-peer car sharing program to provide coverage to a shared vehicle driver in the amount of, in excess of, or optional to the minimum amount of coverage required to be provided under paragraph (1) of this subsection, whether on a stand-alone basis or as part of a financial protection package, shall be considered the sale or offer of insurance under Title 10, Subtitle 6A of this article.
(7)(i) Except as provided in subparagraph (ii) of this paragraph, the motor vehicle liability insurance policy described in paragraph (1) of this subsection shall be primary with respect to the shared vehicle driver, but may be secondary to the shared vehicle driver's motor vehicle liability insurance policy if the shared motor vehicle is used by the shared vehicle driver as a replacement vehicle, as defined in § 18.5-102(a)(2)(i) of the Transportation Article.
(e)(1) An authorized insurer that writes motor vehicle liability insurance in the State and the Maryland Automobile Insurance Fund may exclude any and all coverage and the duty to defend or indemnify for any claim afforded under a shared vehicle owner's personal motor vehicle liability insurance policy for any loss or injury that occurs during the car sharing period.
(3) Nothing in this section invalidates or limits an exclusion contained in a motor vehicle liability insurance policy, including any insurance policy in use or approved for use before October 1, 2018, that excludes coverage for motor vehicles made available for rent, sharing, or hire or for any business use.
Motor vehicle insurer issuance of coverage for vehicle shared through peer-to-peer car sharing program
(f)(1) Except as provided in paragraph (2) of this subsection, a motor vehicle insurer may not deny, cancel, void, terminate, rescind, or nonrenew a personal motor vehicle liability insurance policy of a shared vehicle owner solely on the basis that a motor vehicle covered under the policy has been made available for sharing through a peer-to-peer car sharing program.
(2) A motor vehicle insurer may deny, cancel, void, terminate, rescind, or nonrenew a personal motor vehicle liability insurance policy covering a motor vehicle that has been made available for sharing through a peer-to-peer car sharing program if the applicant or policyholder of the personal motor vehicle liability insurance fails to provide complete and accurate information about the use of a shared motor vehicle through the peer-to-peer car sharing program as requested by the motor vehicle insurer during the application or renewal process of the motor vehicle liability insurance policy.
(g) Nothing in this section:
(h)(1) Coverage under a motor vehicle liability insurance policy maintained by a peer-to-peer car sharing program may not be dependent on the denial of a claim by another motor vehicle insurer.
(i) A peer-to-peer car sharing program and a shared vehicle owner shall be exempt from vicarious liability in accordance with 49 U.S.C. § 30106 and under any state or local law that imposes liability solely based on vehicle ownership.
(j) In a claim coverage investigation following a vehicular accident, a peer-to-peer car sharing program shall cooperate to facilitate the exchange of information with directly involved parties and any motor vehicle insurer of a shared vehicle owner regarding the vehicle's use in a peer-to-peer car sharing program.
Credits
Added by Acts 2018, c. 852, § 1, eff. July 1, 2018.
MD Code, Insurance, § 19-520, MD INSURANCE § 19-520
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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