(a) Authorization.--The secretary, or his designee, may, in his discretion, authorize a disbursement from the fund to cover the amount of any fees and taxes pertaining to an application for titling or registration of a vehicle which a member failed to forward to the department or the department's contracted agent or third-party representative. The disbursement may not exceed the amount paid to the member for the fees and taxes associated with the titling and registration.

(b) Proof of loss.--In order to substantiate a disbursement from the fund, an aggrieved party shall forward to the department an application provided by the department. Along with other documentation, the department shall require the aggrieved party to provide the original or acceptable copies of the canceled check or money order paid to the member and the registration or other document issued to the aggrieved party by the member.

(c) Procedure.--Upon receipt of an application for disbursement, the department shall notify the member. If the member fails to forward the necessary titling or registration documents, fees and taxes within 15 days, the secretary may suspend the member and, where applicable, direct the Department of State to do so. If payment is not made by the member within 15 days and the secretary is satisfied concerning the proof of the claim, he shall direct that the titling and registration documents be processed with moneys from the fund.