In this section, “qualified person” means: a resident of the State; the owner of a motor vehicle registered in the State, unless the owner is not a resident of the State and the motor vehicle bears temporary registration plates issued under Title 13, Subtitle 6, Part I of the Transportation Article; a resident of another state or foreign country that affords recourse to residents of this State that is substantially similar to that provided under this title; or an individual injured by an uninsured motorist who later files for bankruptcy or other protection from creditors that bars the Fund from a subrogation recovery. “Qualified person” does not include: an automobile collision insurer or other insurer that seeks by subrogation to recover payment for damages to a motor vehicle or real or other personal property, or injuries to individuals under any insurance coverages, including collision, fire, theft, medical payments, and uninsured motorist coverages; a holder of a certificate of self-insurance under this article; or an insured under a policy provision that: provides coverage for damages sustained by the insured as a result of the operation of an uninsured motor vehicle; and is authorized to be included in an automobile liability policy delivered or issued for delivery in the State. To the extent that a policy of motor vehicle liability insurance does not provide coverage, a claim that arises out of circumstances described in subsection (c), (d), or (e) of this section may be made against the Fund if: the claim is for: damage to property greater than $250; or the death of or personal injury to a qualified person; at the time of the accident, the claimant was not driving or riding in an uninsured motor vehicle owned by the claimant or a member of the claimant’s family who resides in the claimant’s household; and the claimant is not the personal representative of the individual who was driving or riding in the uninsured motor vehicle; and at the time of the accident, the claimant was not driving a motor vehicle with a certificate of registration that was suspended, canceled, or revoked, or was holding a driver’s license that was suspended, canceled, or revoked; and the claimant is not the personal representative or a member of the family who resides in the household of the individual who was driving the motor vehicle. A claim that arises out of the ownership, maintenance, or use of a motor vehicle in the State may be made against the Fund if: the requirements of subsection (b) of this section are met; the identity of the motor vehicle and of its driver and owner cannot be established; or the identity of the individual who was driving the motor vehicle cannot be established and it is established that, at the time of the accident, the motor vehicle was in the possession of an individual other than the owner without the owner’s consent; the claimant has a cause of action against the driver or owner of the motor vehicle; and all reasonable efforts to establish the identity of the motor vehicle and of its owner and driver are unsuccessful. A claim that arises out of ownership, maintenance, or use of a motor vehicle in the State may be made against the Fund if: the requirements of subsection (b) of this section are met; the claimant has a cause of action against the driver or owner of the motor vehicle; despite all reasonable efforts, the driver or owner of the motor vehicle cannot be located; and at the time of the accident the motor vehicle was an uninsured motor vehicle; or despite all reasonable efforts, it is impossible to establish whether the motor vehicle was insured. Subject to paragraph (2) of this subsection, a claim that arises out of the ownership, maintenance, or use of a motor vehicle in the State may be made against the Fund if: the requirements of subsection (b) of this section are met; the driver or owner of the motor vehicle is uninsured and can be located for service of process; the claimant is not the uninsured driver’s spouse who resides in the uninsured driver’s household or another family member who resides in the uninsured driver’s household; and the claimant is not the personal representative of the spouse who resided in that household; the claim is not made for damage to or destruction of an uninsured motor vehicle owned wholly or partly by the claimant; and the claimant is not eligible to make a claim arising from the same accident against the Property and Casualty Insurance Guaranty Corporation under Title 9, Subtitle 3 of this article. A claim under this subsection may not be made by or for: an insurer under a policy that makes the insurer liable to pay, wholly or partly, the amount of the claim; or an insurer for any amount sought or claimed for damages or destruction to the property of the claimant or an insured by reason of: collision with a motor vehicle or other object, or by upset of the motor vehicle; or coverage of the insured that provides indemnification from injury or damages caused by uninsured motorists. The amount to be paid out of the Fund may not be sought, wholly or partly, to: take the place of making a claim or receiving a payment that is payable under a policy specified in paragraph (2)(i) of this subsection; or reimburse or otherwise indemnify an insurer for an amount paid or payable under a policy specified in paragraph (2)(i) of this subsection.

The maximum amount payable from the Fund, exclusive of interest and costs, for claims filed under this subtitle arising from one accident is: $30,000 on account of injury to or death of one individual; subject to the limit specified in item (1) of this subsection, $60,000 on account of injury to or death of more than one individual; and $15,000 for damages to property. The following deductions shall be made from the smaller of the applicable maximum amount under subsection (a) of this section and the amount of the judgment: $250 from a judgment or part of a judgment for damages to property; and the total amount that the claimant has received or is likely to receive: from any source toward payment of the settlement or judgment; toward payment of a judgment against a person against whom the claimant has a cause of action, arising out of the same accident, for damages for bodily injury or death or damage to property; under a policy affording indemnity for damage to or destruction of property of the applicant; and by reason of the accident out of which the claim arises under any workers’ compensation law. For the purposes of this subtitle, medical, hospital, funeral, or other benefits paid or payable for the applicant under the Maryland Workers’ Compensation Act shall be considered to be received or receivable by the claimant. The Fund may recover any amount paid out of the Fund that exceeds the amount authorized under this subtitle by bringing an action against the person that received the excess payment. Notwithstanding any workers’ compensation law or similar law to the contrary, whenever the amount of a payment by the Fund has been reduced by the amount of benefits paid or to be paid in accordance with a workers’ compensation law or similar law, the employer of an injured person or decedent and the insurer of that employer is not entitled to a lien on payment from the Fund. Workers’ compensation benefits may not be reduced because of the reduced payment from the Fund.

Except as provided in paragraph (2) of this subsection, notice of a claim for damages must be filed with the Fund within 180 days after the accident out of which the cause of action arises before a person may apply or sue for payment from the Fund under this subtitle. If notice of a claim is not filed within the time required under paragraph (1) of this subsection, a claim or suit may not be filed or maintained unless the claimant provides proof: that the claimant was physically incapable of filing notice within the time required and filed notice within 30 days after becoming physically capable of doing so or, if the claimant did not become capable of filing notice, that a notice was filed for the claimant within a reasonable period; that the claimant filed notice within 30 days after having received notice that an insurer had disclaimed on a policy and thus removed or withdrew liability insurance coverage for the claim against a defendant; or that the claimant gave the notice required under paragraph (1) of this subsection within 30 days after receiving notice that the insurer of the defendant was insolvent if: the insurer of the defendant is not authorized to transact insurance business in the State; and the claimant is not eligible to make a claim against the Property and Casualty Insurance Guaranty Corporation. The notice of a claim shall contain: evidence that the claimant: has fulfilled all requirements to file a claim; and is not eligible for uninsured motorist coverage benefits from a policy issued to the claimant or a family member who resides in the claimant’s household; certification by the claimant’s employer of all lost wages incurred up to the filing of notice of a claim; evidence of all medical expenses incurred up to the filing of notice of a claim; all reports of medical treatment and consultation for injuries sustained; evidence of all other damages claimed up to the filing of the notice of claim; all available police or other accident reports; and additional information that the Executive Director requires by regulation. To the extent practicable, information required in notice of a claim shall be submitted in one filing.

The Executive Director shall adopt regulations and the Supreme Court of Maryland shall adopt rules that set forth procedural requirements for claims and actions against the Fund filed under this subtitle. Before the Fund becomes liable under this subtitle, a claimant must comply with each procedural requirement for claims and actions against the Fund. On behalf of the Fund, the Executive Director or designee of the Executive Director may stipulate that the procedural requirements have been met and consent to the claimant bringing an action against the Fund. A stipulation or consent does not waive any defense that the Fund may have with respect to the case. At any time and without filing a petition for payment or other court approval, the Fund may settle, compromise, and pay claims and actions brought and judgments obtained under this subtitle. The Executive Director shall adopt regulations setting forth the procedure for settlement or payment. Interest shall accrue from the date of judgment in accordance with § 11–107 of the Courts Article.

After the Fund negotiates with a plaintiff or claimant a settlement offer that the Fund finds reasonable, the Fund shall give notice to the defendant or uninsured party of the offer in accordance with regulations of the Fund. If a defendant or uninsured party approves the settlement offer, the plaintiff or claimant shall proceed to settlement in accordance with regulations of the Fund and the Maryland Rules. If a defendant or uninsured party rejects a settlement offer, the Fund shall cause notice to be served on the defendant or uninsured party by any lawful manner, including: a sheriff; a private process server; and certified mail bearing a postmark from the United States Postal Service to the last known address of the defendant or uninsured party or the last address on file with the Motor Vehicle Administration of this State or the state where the defendant or uninsured was last known to reside. The notice served under this subsection shall state that: without further notice, the Fund will withdraw from the claim or action 30 days after the date of the notice; within 30 days after the date of the notice, an appearance may be entered by the defendant or uninsured party or by defense counsel whom the defendant or uninsured party chooses; and if the provisions of item (ii) of this paragraph are not met, at any time after 30 days following the date of the notice and without further notice, suit may be filed or judgment may be entered against the defendant or uninsured party in the amount of the settlement offer. After the end of the 30-day period following notice served to a defendant or uninsured party under subsection (b) of this section, the Fund may settle the claim, file suit, or request the court to set the action for an expedited hearing. At a hearing authorized under subsection (c) of this section, the court may proceed in a summary manner and, if satisfied that each applicable provision of this title has been met, enter judgment in favor of the plaintiff or Fund in the amount of the settlement offer. The defendant or uninsured party may file an appeal within 10 days after the date of entry of the judgment. Absent proof of fraud, mutual mistake, or obvious irregularity, the judgment is not subject to appeal, amendment, or other action of the court after the period for filing an appeal has expired.

When a claim subject to this subtitle results in a default judgment that is entered for want of a plea by a defendant other than the Fund, or in a judgment that is entered with the consent of the defendant without the knowledge and approval of the Fund, the Fund shall answer or apply for relief against the judgment and for permission to answer and defend the claim within 30 days after receipt of actual notice of the judgment. The Fund may elect to intervene in or defend a claim subject to this subtitle. The Fund is entitled to each defense that would have been or is available to the uninsured owner or driver. A defendant shall cooperate with the Fund in defense of a claim in which the Fund has intervened under this subtitle. If the defendant fails to cooperate, the Fund may apply to the court for an order that directs cooperation or proceed as provided under this subtitle.

An appeal to the appropriate court may be taken from a final order, decree, or judgment of a court made under this subtitle: that debars a claimant from further proceeding against the Fund or denies the claim; that awards the claimant less than that to which the claimant believes the claimant is entitled; or except as provided in § 20-605 of this subtitle, that causes the defendant, the uninsured party, the Fund, or other party to be aggrieved.

All money paid out by the Fund under this subtitle may be recovered by the Fund from the uninsured party at fault in any manner provided by law, including the Maryland Tax Refund Intercept Program. A judgment that is assigned to or obtained by the Fund: is considered in its entirety as taken for the use of the State; and shall be indexed in the appropriate court records in the name of the State of Maryland, Maryland Automobile Insurance Fund. If the Fund brings suit to enforce a judgment obtained under this subtitle against an uninsured party at fault, the Fund may recover the actual costs of collection, including reasonable attorney’s fees.

Whenever the Fund makes payment in an action brought or claim made under this subtitle, the Fund shall be subrogated to the cause of action of the claimant receiving the payment against the driver or owner of the motor vehicle by which the accident was occasioned. The Fund: if the identity and whereabouts are established of the person that is the driver or owner, may bring an action against that person for the amount of damage the claimant sustains; and may recover that amount out of any money payable with respect to death or injury under any policy in force when the accident occurred. If the amount recovered in an action under subsection (b) of this section is greater than the amount paid out of the Fund, the Fund: first, shall reimburse itself as provided in § 20-608 of this subtitle; and second: shall collect and pay the unpaid balance to the claimant; or shall assign and transfer to the claimant any judgment, note, or other right, interest, or cause of action that the Fund has against the uninsured driver or owner. Notwithstanding any other statute of limitations, the Fund may bring an action against the person that is the driver or owner within 6 months after the identity and whereabouts of that person are established.

The General Assembly finds and declares that: there is an unacceptably large number of uninsured motorists in the State; uninsured motorists cause harm to insured drivers by increasing the cost of automobile insurance for everyone required to purchase uninsured motorist coverage; uninsured motorists are a financial drain on the State and require substantial funding for the Uninsured Division of the Fund to cover legitimate claims of innocent pedestrians, passengers, and drivers who are injured by uninsured motorists; to encourage uninsured motorists to become insured, the law for many years has provided financial penalties to be imposed on uninsured motorists and a substantial number of penalties are issued every year; to further address the rate of uninsured motorists, the General Assembly passed legislation (Chapter 446 of the Acts of 2016) to require the Motor Vehicle Administration to conduct a program that waived substantial portions of delinquent uninsured motorist fines as an incentive for eligible participants to become insured, but less than 4% of eligible uninsured motorists actually entered the program; the General Assembly also passed legislation (Chapter 401 of the Acts of 2016) to require drivers to carry proof of automobile insurance; despite these statutory efforts, the rate of uninsured motorists has remained stubbornly high, hovering at about 12% according to the Insurance Research Council; it is in the best interests of the State to address the rate of uninsured motorists in the State in a comprehensive and coordinated fashion; the Fund was established in 1973 to provide the financial security required under the Maryland Vehicle Law to individuals who are unable to obtain automobile insurance from private insurers; in addition to the Fund, motor vehicle liability insurance in the State is provided through a system of private insurers, insurance producers, and independent insurance producers; the Uninsured Division is uniquely positioned to reduce the rate of uninsured motorists by conducting outreach and incentivizing, educating, and encouraging uninsured motorists to obtain automobile insurance from private insurers or the Fund; and the effort to reduce the rate of uninsured motorists would be greatly enhanced by making the Uninsured Division the primary State agency with responsibility to conduct outreach and incentivize, educate, and encourage uninsured motorists to become insured.

In this section, “Uninsured Motorist Fund” means the Uninsured Motorist Education and Enforcement Fund. There is an Uninsured Motorist Education and Enforcement Fund. The purpose of the Uninsured Motorist Fund is to provide funding for the education of drivers about, and the enforcement of, the security requirements for motor vehicles under the Maryland Vehicle Law. The Uninsured Division shall administer the Uninsured Motorist Fund. The Uninsured Motorist Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The Uninsured Motorist Fund consists of: revenues deposited to the Uninsured Motorist Fund under § 17–104.2 of the Transportation Article; interest and investment earnings of the Uninsured Motorist Fund; and any other money from any other source accepted for the benefit of the Uninsured Motorist Fund. Money in the Uninsured Motorist Fund shall be used solely for: the administration of the Uninsured Motorist Fund; and the education of drivers and the public about: the security requirements under the Maryland Vehicle Law; and the sources of automobile insurance in the State, including private insurers and the Fund.

In this section the following words have the meanings indicated. “Central Collection Unit fee” means the fee the Central Collection Unit in the Department of Budget and Management is authorized under § 3–304 of the State Finance and Procurement Article to assess on debts or claims collected. “Program” means the Program to Incentivize and Enable Uninsured Vehicle Owners to Be Insured established under subsection (b)(1) of this section. “Program period” means the period during which vehicle owners may have a portion of delinquent uninsured vehicle penalties waived under the Program. “Uninsured vehicle penalty” means the fine the Motor Vehicle Administration may assess a vehicle owner under § 17–106 of the Transportation Article for a lapse of the required security on a vehicle during a registration year. There is a Program to Incentivize and Enable Uninsured Vehicle Owners to Be Insured in the Uninsured Division. The Program is administered by the Uninsured Division. The purpose of the Program is to reduce the number of uninsured vehicles in the State by incentivizing and enabling individuals with delinquent uninsured vehicle penalties to become: eligible to register a vehicle in the State; and insured after paying a reduced uninsured vehicle penalty. The Program period: may not exceed 180 calendar days; and shall begin not earlier than July 1, 2018, and end not later than December 31, 2019. An individual is eligible to participate in the Program if the individual: is a State resident; has delinquent uninsured vehicle penalties that became delinquent on or before December 31, 2016; does not have the required insurance on any vehicle owned by the individual; and has not been issued a judgment by the Central Collection Unit. The Motor Vehicle Administration and the Central Collection Unit shall provide the Uninsured Division with contact information and the total amount of delinquent uninsured vehicle penalties of each individual who may be eligible to participate in the Program. The Uninsured Division shall notify individuals who may be eligible to participate in the Program at the individual’s last known address. The notification required under paragraph (2) of this subsection shall include: the website addresses of the Motor Vehicle Administration, the Fund, and the Administration, where individuals may find contact information for insurers that write motor vehicle liability insurance in the State and other information about motor vehicle insurance; and the total amount of delinquent uninsured vehicle penalties that the individual owes and the amount of the penalties that may be waived under the Program. On notification by the Uninsured Division that an applicant meets the eligibility requirements for the Program, the Motor Vehicle Administration shall waive 80% of an eligible individual’s delinquent uninsured vehicle penalties that became delinquent on or before December 31, 2016. As a condition of receiving a waiver under paragraph (1) of this subsection, the eligible individual shall pay the balance of the delinquent uninsured vehicle penalties owed after subtracting the waived amount under paragraph (1) of this subsection. If a claim against an eligible individual has been sent to the Central Collection Unit, in addition to the balance owed under subparagraph (i) of this paragraph, the eligible individual shall pay a Central Collection Unit fee calculated as a percentage of the amount of the balance owed under subparagraph (i) of this paragraph. Except as provided in subsubparagraph 2 of this subparagraph, an eligible individual shall pay the balance owed under subparagraph (i) of this paragraph and any Central Collection Unit fee owed under subparagraph (ii) of this paragraph before the end of the Program period. An eligible individual may pay the balance owed under subparagraph (i) of this paragraph and any Central Collection Unit fee owed under subparagraph (ii) of this paragraph using a monthly installment payment plan that extends payments beyond the end of the Program period if the terms of the monthly installment payment plan require: the first payment to be due on entry into the Program; and the remaining balance owed to be paid within 6 months after entry into the Program. As a condition of receiving a waiver under paragraph (1) of this subsection, an eligible individual who owns a vehicle at the time of the waiver, or an eligible individual who does not own a vehicle at the time of the waiver but subsequently registers a vehicle, shall purchase and maintain the required security on the vehicle for the period of time specified in subparagraph (ii) of this paragraph. The eligible individual shall maintain the required security on the vehicle for a period of: at least 6 months; or at least 1 year if the waived amount under paragraph (1) of this subsection exceeds $3,000. On behalf of the State, the Uninsured Division may collect the amount of the delinquent uninsured vehicle penalties due together with any Central Collection Unit fee that is due and transmit the money that is owed to the Motor Vehicle Administration and the Central Collection Unit. On notification from the Uninsured Division that the required amount of the uninsured vehicle penalties and Central Collection Unit fees have been received from an eligible individual, the Motor Vehicle Administration and the Central Collection Unit shall take the necessary steps to allow the eligible individual to register a vehicle.

An applicant for a policy from the Fund who is participating in the Program under § 20–612 of this subtitle may: be considered by the Fund to have met the requirements of § 20–502(a)(3) of this title; and pay the premium for the policy in installments in accordance with § 20–507(g)(1)(ii)1B of this title, regardless of the amount of the premium.

If the Uninsured Division receives information from the Motor Vehicle Administration as required under § 17–106 of the Transportation Article regarding an owner of a vehicle who has been notified by the Motor Vehicle Administration that the registration of the vehicle has been suspended, the Uninsured Division may not, in any fashion, contact the owner until at least 60 days after the effective date of the final termination or lapse of the required security, as reported to the Motor Vehicle Administration by an insurer. If the Uninsured Division uses the information received from the Motor Vehicle Administration under § 17–106 of the Transportation Article to contact an owner, the Uninsured Division shall send a notice to the owner that: provides the website addresses of the Motor Vehicle Administration, the Fund, and the Administration where the owner may find contact information for insurers that write motor vehicle liability insurance in the State and other information about motor vehicle liability insurance; and advises the owner that the owner may contact the owner’s insurance producer, if any, or the owner’s prior insurer to determine whether motor vehicle liability insurance may be placed for the owner by the insurance producer or the insurer.