§ 18-106
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/md/transportation/18-106A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§18–106.
(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.
(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.
(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.
(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.