# Transportation (GTR)

## Title 17. Vehicle Laws -- Required Security

### Subtitle 1. General Security Provisions

#### Section 17-101

(a) In this subtitle the following words have the meanings indicated.

(b) "Fleet policy" means an insurance policy issued for a fleet of vehicles that provides coverage that is not based on a schedule of individual vehicles at the time the policy is issued.

(c) "Lapse" and "termination" mean a lapse or termination of required security, as defined in regulations adopted by the Administration.

(d) "Required security" means security in the form and providing for the minimum benefits required:

  (1) For a vehicle registered in the State, under this subtitle or any other provisions of the Maryland Vehicle Law; or

  (2) For a vehicle registered in another jurisdiction, under the laws of that jurisdiction.

#### Section 17-102

This subtitle does not apply to the following vehicles and their drivers:

(1) Except for a vehicle registered under Sec. 13-935(d) of this article, farm equipment or special mobile equipment incidentally operated on a highway or on other property open to the public; or

(2) A vehicle operated on a highway only to cross the highway from one property to another.

#### Section 17-103

(a)

  (1) Except as provided in paragraph (2) or (3) of this subsection, the form of security required under this subtitle is a vehicle liability insurance policy written by an insurer authorized to write these policies in this State.

  (2) The Administration may accept another form of security in place of a vehicle liability insurance policy if it finds that the other form of security adequately provides the benefits required by subsection (b) of this section.

  (3)

    (i)

      (1) In this paragraph the following words have the meanings indicated.

      (2) "Affiliate" means any company that controls, is controlled by, or is under common control with another company.

      (3) "Provide taxicab services", "transportation network company", and "transportation network operator" have the meanings stated in Sec. 10-101 of the Public Utilities Article.

    (ii) The Administration may accept another form of security from a transportation network company in place of an insurance policy required by Sec. 10-405 of the Public Utilities Article if:

      (1) The other form of security adequately provides the benefits required by Sec. 10-405 of the Public Utilities Article; and

      (2) The transportation network company is an affiliate of a company that provides taxicab services and has no fewer than 26 nor more than 300 transportation network operators.

  (4) The Administration shall, by regulation, assess each self-insurer an annual sum which may not exceed $750, and which shall be used for actuarial studies and audits to determine financial solvency.

(b) The security required under this subtitle shall provide for at least:

  (1) The payment of claims for bodily injury or death arising from an accident of up to $30,000 for any one person and up to $60,000 for any two or more persons, in addition to interest and costs;

  (2) The payment of claims for property of others damaged or destroyed in an accident of up to $15,000, in addition to interest and costs;

  (3) Unless waived under Sec. 19-506 of the Insurance Article or rejected under Sec. 19-506.1 of the Insurance Article, the benefits described under Sec. 19-505 of the Insurance Article as to basic required primary coverage;

  (4) The benefits required under Sec. 19-509 or Sec. 19-509.1 of the Insurance Article as to required additional coverage; and

  (5) For vehicles subject to the provisions of Sec. 25-111.1 of this article, the security requirements adopted under 49 C.F.R., Part 387.

#### Section 17-104

(a) The Administration may not issue or transfer the registration of a motor vehicle unless the owner or prospective owner of the vehicle furnishes evidence satisfactory to the Administration that the required security is in effect.

(b) The owner of a motor vehicle that is required to be registered in this State shall maintain the required security for the vehicle during the registration period.

(c) Each insurer or other provider of required security shall:

  (1) Participate in the Administration's online verification program for vehicle insurance policies for law enforcement and administrative purposes;

  (2) For each fleet policy, electronically notify the Administration every 30 days of any additions, deletions, or modifications to the fleet policy, including those policy numbers affected; and

  (3) Electronically provide the Administration with all active insurance policies:

    (i) In a format required by the Administration; and

    (ii) At an interval determined by the Administration.

(d) The Administration, in consultation with the Maryland Insurance Administration and representatives of the automobile insurance industry, shall adopt regulations that establish procedures to be used by an insurer to provide timely notification to an insured of the penalties that may be imposed in accordance with Sec. 17-106 of this subtitle if the insured fails to renew or replace a policy of motor vehicle liability insurance without surrendering the evidences of registration.

(e)

  (1) In this subsection, "replacement vehicle" means a vehicle that is loaned by an auto repair facility or a dealer, or that an individual rents temporarily, to use while a vehicle owned by the individual is not in use because of loss, as "loss" is defined in that individual's applicable private passenger automobile insurance policy or because of breakdown, repair, service, or damage.

  (2) This subsection does not apply to a rental vehicle that is not a replacement vehicle if the coverage maintained by the renter or driver is provided by the Maryland Automobile Insurance Fund.

  (3) Subject to paragraph (5) of this subsection, subsection (f) of this section, and Sec. 18-106 of this article, an owner of a rental vehicle or replacement vehicle may satisfy the requirement of subsection (a) of this section by maintaining the required security described in Sec. 17-103 of this subtitle that is secondary to any other valid and collectible coverage and that extends coverage in amounts required under Sec. 17-103(b) of this subtitle to the owner's vehicle while it is used as a rental vehicle or replacement vehicle.

  (4) If an owner of a replacement vehicle provides coverage as provided under paragraph (3) of this subsection, the agreement for the replacement vehicle to be signed by the renter or the individual to whom the vehicle is loaned shall contain a provision on the face of the agreement, in at least 10 point bold type, that informs the individual that the coverage on the vehicle being serviced or repaired is primary coverage for the replacement vehicle and the coverage maintained by the owner on the replacement vehicle is secondary.

  (5) If coverage maintained by the renter or individual to whom the vehicle is loaned has lapsed or does not provide the required coverage:

    (i) Security maintained by the owner of the rental vehicle or replacement vehicle shall:

      (1) Be primary; and

      (2) Provide the coverage required beginning with the first dollar of a claim; and

    (ii) The owner of the rental vehicle or replacement vehicle shall have the duty to defend the claim.

(f) If an owner of a rental vehicle provides coverage in accordance with subsection (e)(3) of this section, the rental agreement to be signed by the renter shall contain a provision on the face of the agreement, in at least 10 point bold type, that informs the individual that, except for coverage provided by the Maryland Automobile Insurance Fund with respect to a rental vehicle that is not a replacement vehicle, the coverage maintained by the renter of the rental vehicle is primary coverage on the owner's confirmation with the insurance carrier that provides coverage to the renter that the insurance maintained by the renter provides valid and collectible coverage in the amounts required under Sec. 17-103(b) of this subtitle to the owner's vehicle while it is used as a rental vehicle.

#### Section 17-104.1

The operator of a moped or motor scooter shall carry evidence of the required security when operating the moped or motor scooter. 

#### Section 17-104.2

(a) In this section, "Fund" means the Uninsured Motorist Education and Enforcement Fund administered by the Uninsured Division of the Maryland Automobile Insurance Fund under Sec. 20-611 of the Insurance Article.

(b) The operator of a motor vehicle that is required to be registered in this State shall:

  (1) Be in possession of, or carry in the motor vehicle, evidence of the required security for the motor vehicle, when operating the motor vehicle on a highway in the State; and

  (2) Present evidence of the required security on the request of a law enforcement officer.

(c)

  (1) An insurance identification card issued by or on behalf of a motor vehicle insurer under Sec. 19-504.1 of the Insurance Article is a form of evidence of the required security for the motor vehicle.

  (2) Evidence of the required security may be produced in electronic format, including display of electronic images on a cellular phone or any other type of portable electronic device.

(d)

  (1) A person who violates subsection (b) of this section is subject to a fine of $50.

  (2) The fine under paragraph (1) of this subsection:

    (i) May be waived; and

    (ii) Shall be deposited in the Fund.

(e) The Administration may adopt regulations to carry out this section.

#### Section 17-104.3

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Adverse event" means an incident that may subject the owner or driver of a rental vehicle to legal liability, including liability for:

    (i) Damages;

    (ii) Costs of defense;

    (iii) Legal costs and fees; and

    (iv) Any other claims expenses.

  (3) "Motor vehicle rental company" means a person that is in the business of providing motor vehicles to the public under a rental agreement for a period not exceeding 180 days.

  (4) "Rental agreement" means a written agreement containing the terms and conditions that govern the use of a rental vehicle provided by a motor vehicle rental company under the provisions of this article.

(b) A person involved in an adverse event that involves a rental vehicle rented by another, or the person's legal representative, may request information, as provided under subsection (c) of this section, from the motor vehicle company that owns the rental vehicle by submitting a written request to the motor vehicle rental company in accordance with subsection (c) of this section.

(c)

  (1) If known to the motor vehicle rental company, a request made to a motor vehicle rental company under this section shall include:

    (i) The full name of the person that is believed to have rented the rental vehicle involved in the adverse event;

    (ii) The date and approximate time of the adverse event; and

    (iii) To the extent known, a description of the rental vehicle, including the vehicle's:

      (1) Make;

      (2) Model;

      (3) Color; and

      (4) Registration number.

  (2) A request made under this section shall be submitted to the motor vehicle rental company's registered agent in the State.

(d)

  (1) Except as provided in subsection (e) of this section, as soon as practicable after receiving a request for information, a motor vehicle rental company shall provide the person that made the request with the following information in writing:

    (i) The name, mailing address, and date of birth of each person identified in a rental agreement as a renter or authorized driver of the rental vehicle at the time the adverse event is alleged to have occurred; and

    (ii)

      (1) The name of the insurer responsible for providing primary insurance coverage for the rental vehicle at the time the adverse event is alleged to have occurred; and

      (2) If known to the motor vehicle rental company, the policy number associated with the primary insurance coverage for the rental vehicle at the time the adverse event is alleged to have occurred.

  (2) If the person driving the rental vehicle at the time of the adverse event is not identified in the rental agreement, the motor vehicle rental company shall make a reasonable effort to obtain and provide the individual's name, mailing address, and date of birth to the person making the request for information.

(e)

  (1) If a request is made under this section more than 3 years after the date on which the adverse event is alleged to have occurred, the motor vehicle rental company may refuse to provide information under subsection (d) of this section.

  (2) A motor vehicle rental company may not be compelled to disclose any information regarding persons identified as renters or authorized drivers of a rental vehicle other than the information that is required under subsection (d) of this section.

(f) Unless it is established that the disclosure made by the motor vehicle rental company or an employee or agent of the motor vehicle rental company constituted reckless, wanton, or intentional misconduct, a motor vehicle rental company may not be held civilly or criminally liable for disclosing information in accordance with this section.

#### Section 17-105

(a) If a person has been finally rejected for insurance by the Maryland Automobile Insurance Fund under Sec. 20-516 of the Insurance Article, the person shall, within 10 days after the rejection, furnish evidence satisfactory to the Administration that he has obtained and is covered by the required security.

(b) If the person fails to furnish this evidence within the 10-day period, the Administration:

  (1) Shall suspend the registration of each motor vehicle owned by the person; and

  (2) Shall suspend the license to drive of that person.

(c) The Administration may not reinstate a registration suspended under this subsection until the person furnishes the evidence that he has obtained and is covered by the required security.

(d) A license to drive that is suspended under this section shall be reinstated if the licensee:

  (1) Furnishes evidence that he has obtained and is covered by the required security; or

  (2) Has delivered to the Administration the registration plates of each motor vehicle owned by him.

#### Section 17-106

(a) If the required security for any vehicle lapses at any time, the registration of that vehicle:

  (1) Is suspended automatically as of the date of the lapse effective not later than 60 days after notification to the Administration that the lapse has occurred; and

  (2) Remains suspended until:

    (i) The required security is replaced and the vehicle owner submits evidence of replaced security on a form as prescribed by the Administration and certified by an insurer or insurance producer; and

    (ii) Any uninsured motorist penalty fee assessed is paid to the Administration.

(b)

  (1) Except as provided in paragraph (2) of this subsection, each insurer or other provider of required security immediately shall notify the Administration electronically of those terminations or other lapses that are final.

  (2) Each insurer or other provider of required security for a vehicle registered as a Class B (for hire) vehicle under Title 13 of this article shall notify the Administration within 45 days after a termination or other lapse that is final and occurs anytime after the required security is issued or provided.

(c) On receipt of a notice under subsection (b) of this section, the Administration shall:

  (1) Make a reasonable effort to notify the owner of the vehicle that his registration has been suspended; and

  (2) Provide electronically the information contained in the notice of the suspension to the Uninsured Division of the Maryland Automobile Insurance Fund.

(d)

  (1) Within 48 hours after an owner is notified by the Administration of the suspension of registration, the owner shall surrender all evidences of that registration to the Administration.

  (2) If the owner fails to surrender the evidences of registration within the 48-hour period, the Administration:

    (i) Shall attempt to recover from the owner the evidences of registration; and

    (ii) May suspend his license to drive until he returns to the Motor Vehicle Administration the evidences of registration.

  (3) The Administration may enter into contracts with private parties to procure the services of independent agents to assist in the recovery of the evidences of registration as authorized in paragraph (2) of this subsection.

(e)

  (1)

    (i)

      (1) Except as provided in subparagraphs (iv) and (v) of this paragraph, in addition to any other penalty provided for in the Maryland Vehicle Law, if the required security for a vehicle terminates or otherwise lapses during its registration year, the Administration may assess the owner of the vehicle with a penalty of $200 for each vehicle without the required security for a period of 1 to 30 days.

      (2) If a fine is assessed, beginning on the 31st day the fine shall increase by a rate of $7 for each day.

    (ii) Each period during which the required security for a vehicle terminates or otherwise lapses shall constitute a separate violation.

    (iii) The penalty imposed under this subsection may not exceed $3,500 for each violation in a 12-month period.

    (iv) The Administration may not assess a penalty under this subsection if:

      (1) The registration plates of the vehicle are returned to the Administration within 10 days after the termination or lapse of the required security, as shown by the records of the Administration; and

      (2)

        (A) The certificate of title for the vehicle has been transferred to a new owner;

      (B) The registered owner has moved out-of-state and the registration plates are returned by mail;

      (C) A salvage certificate has been issued for the vehicle; or

      (D) A licensed dealer has taken possession of the vehicle with an obligation to return the registration plates.

    (v) Before the Administration may assess a penalty under this subsection, the Administration shall first verify that the registration plates for the vehicle were not returned to the Administration within 10 days after the termination or lapse of the required security.

  (2)

    (i) Except as provided under paragraph (3) of this subsection, a penalty assessed under this subsection shall be paid as follows:

      (1) 70% to be allocated as provided in subparagraph (ii) of this paragraph; and

      (2) 30% to the Administration, which may be used by the Administration, subject to subsection (f) of this section, to provide funding for contracts with independent agents to assist in the recovery of evidences of registration as authorized in subsection (d)(3) of this section.

    (ii) For each fiscal year beginning on or after July 1, 2014, the percentage of the penalties specified under subparagraph (i)1 of this paragraph shall be allocated among the Safe Schools Fund, the Vehicle Theft Prevention Fund, the Maryland Automobile Insurance Fund, the Driver Education in Public High Schools Fund, the State-Aided Institutions Field Trip Fund, and the General Fund as follows:

      (1) $600,000 to the Safe Schools Fund;

      (2) $2,000,000 to the Vehicle Theft Prevention Fund;

      (3) The amounts specified under subparagraph (iii) of this paragraph to the Maryland Automobile Insurance Fund;

      (4) $2,000,000 to the Driver Education in Public High Schools Fund;

      (5) $600,000 to the State-Aided Institutions Field Trip Fund; and

      (6) The balance to the General Fund.

    (iii)

      (1) Except for fiscal year 2024 and except as provided under subsubparagraph 3 of this subparagraph, the amount distributed to the Maryland Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall equal the amount distributed to the Maryland Automobile Insurance Fund in the prior fiscal year under the provisions of this paragraph adjusted by the change for the calendar year preceding the fiscal year in the Consumer Price Index - All Urban Consumers - Medical Care as published by the United States Bureau of Labor Statistics.

      (2) For fiscal year 2024, the amount distributed to the Maryland Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall equal the amount distributed to the Maryland Automobile Insurance Fund in the prior fiscal year under the provisions of this paragraph adjusted by the change for the calendar year preceding the fiscal year in the Consumer Price Index - All Urban Consumers - Medical Care as published by the United States Bureau of Labor Statistics plus an additional $2,000,000.

      (3) For fiscal year 2025, the amount distributed to the Maryland Automobile Insurance Fund under subparagraph (ii)3 of this paragraph shall equal the amount distributed to the Maryland Automobile Insurance Fund calculated in accordance with subsubparagraph 1 of this subparagraph:

      (A) Plus an additional $3,000,000 dedicated to the exclusive use of the Uninsured Division, which shall become part of the base amount used to calculate the amount distributed under subsubparagraph 1 of this subparagraph in subsequent fiscal years; but

      (B) Excluding the $2,000,000 distributed to the Fund in fiscal year 2024.

  (3) Beginning July 1, 2018, any uninsured motorist penalties the Administration receives under the Program to Incentivize and Enable Uninsured Vehicle Owners to Be Insured established under Sec. 20-612 of the Insurance Article shall be paid to the Uninsured Division of the Maryland Automobile Insurance Fund.

  (4) If the Administration assesses a vehicle owner, co-owner, or lessee with a penalty under this subsection, the Administration may not take any of the following actions until the penalty is paid:

    (i) Reinstate a registration suspended under this subsection;

    (ii) Except for a temporary registration as provided under Sec. 13-602(a)(2) of this article, issue a new registration for any vehicle that is owned, co-owned, or leased by that person and is titled after the violation date; or

    (iii) Renew a registration for a vehicle that is owned, co-owned, or leased by that person.

  (5)

    (i) In this paragraph, "family member" means any individual whose relationship to the vehicle owner is one of those listed under Sec. 13-810(c)(1) of this article as being exempt from paying the excise tax imposed on the transfer of a vehicle.

    (ii) The monetary penalties provided in this subsection may not be avoided by transferring title to the vehicle.

    (iii) Except as provided in paragraph (1)(iv) and (v) of this subsection, regardless of whether money or other valuable consideration is involved in the transfer, if title to a vehicle is transferred by an individual who has violated this subtitle to a family member, any suspension of the vehicle's registration that occurred before the transfer shall continue as if no transfer had occurred and a new registration may not be issued until the penalty fee is paid.

  (6) An amount equal to the monetary penalties paid to the Administration under paragraph (2) of this subsection may be used by the Administration only for the enforcement of this subtitle.

(f) From the amount distributed to the Administration under subsection (e)(2)(i)2 of this section, expenditures to fund contracts entered into under subsection (d)(3) of this section:

  (1) May not exceed $1,000,000 in any fiscal year; and

  (2) May be made only:

    (i) Pursuant to an appropriation approved by the General Assembly in the annual State budget; or

    (ii) Through the budget amendment procedure provided for in Sec. 7-209 of the State Finance and Procurement Article, provided that:

      (1) The budget amendment and supporting information have been submitted to the budget committees for review and comment; and

      (2) At least 45 days have elapsed from the time the budget amendment and supporting information were submitted to the budget committees.

#### Section 17-106.1

(a) The Administration may establish and implement a system for each insurer or other provider of the security required by Sec. 17-103 of this subtitle to report to the Administration all policies issued for vehicles registered in the State.

(b)

  (1) The Administration shall operate the reporting system developed under subsection (a) of this section and may not contract with an outside entity for the operation of the system.

  (2) Paragraph (1) of this subsection may not be construed to prohibit the Administration from contracting with an outside entity for the design or development of the reporting system authorized under subsection (a) of this section.

(c) The Administration may not disclose or allow the bulk purchase of any insurance information submitted by insurers or other providers under a reporting system established under subsection (a) of this section.

#### Section 17-107

(a) A person who knows or has reason to know that a motor vehicle is not covered by the required security may not:

  (1) Drive the vehicle; or

  (2) If the person is an owner of the vehicle, knowingly permit another person to drive it.

(b)

  (1) In any prosecution under subsection (a) of this section for a vehicle that is registered in the State, the introduction of the official records of the Motor Vehicle Administration showing the absence of a record that the vehicle is covered by the security required under Sec. 17-104 of this subtitle shall be prima facie evidence that a person knows or has reason to know that a motor vehicle is not covered by the required security.

  (2) The introduction of evidence of the records of the Administration may not limit the introduction of other evidence bearing upon whether the vehicle was covered by the required security.

(c) An owner or lessee of any motor vehicle registered under Title 13 of this article may not raise the defense of sovereign or governmental immunity as described under Sec. 5-524 of the Courts and Judicial Proceedings Article.

(d) A person convicted of a violation of this section is subject to:

  (1) For a first offense, imprisonment not exceeding 1 year or a fine not exceeding $1,000 or both; and

  (2) For a second or subsequent offense, imprisonment not exceeding 2 years or a fine not exceeding $1,000 or both.

#### Section 17-109

(a) A person who receives a warning letter under Title 16, Subtitle 4 of this article as a result of point accumulation shall submit evidence that any vehicle registered in the person's name, individually or jointly, has been continuously covered, since the notice date of the point accumulation warning letter, by the security required under this subtitle.

(b) The evidence of security shall be submitted to the Administration within 30 days of the request on a form prescribed by the Administration and certified by an insurer or insurance producer.

#### Section 17-110

(a) Whenever evidence of security is required under this subtitle, a person may not willfully and knowingly create, certify, file, or provide false evidence of required security.

(b) A person convicted of a violation of this section is subject to:

  (1) For a first offense, imprisonment not exceeding 1 year or a fine not exceeding $1,000 or both; and

  (2) For a second or subsequent offense, imprisonment not exceeding 2 years or a fine not exceeding $1,000 or both.

#### Section 17-111

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Central Collection Unit fee" means the fee the Central Collection Unit in the Department of Budget and Management is authorized under Sec. 3-304 of the State Finance and Procurement Article to assess on debts or claims collected.

  (3) "Program" means the Program to Incentivize and Enable Uninsured Vehicle Owners to Be Insured.

  (4) "Program period" means the period during which vehicle owners may have a portion of delinquent uninsured vehicle penalties waived under the Program.

  (5) "Uninsured vehicle penalty" means the fine the Administration may assess a vehicle owner under Sec. 17-106 of this subtitle for a lapse of the required security on a vehicle during a registration year.

(b)

  (1) There is a Program to Incentivize and Enable Uninsured Vehicle Owners to Be Insured in the Administration.

  (2) The purpose of the Program is to reduce the number of uninsured vehicles in the State by incentivizing and enabling uninsured vehicle owners with delinquent uninsured vehicle penalties to be insured.

(c)

  (1) Under the Program, the Administration shall:

    (i) Waive a portion of delinquent uninsured vehicle penalties on vehicle owners; and

    (ii) As a condition of waiving a portion of delinquent uninsured vehicle penalties on vehicle owners, require vehicle owners to purchase and maintain the required security on their vehicles.

  (2) The Program period shall:

    (i) Be up to 90 calendar days; and

    (ii) Begin no earlier than January 1, 2017, and end no later than December 31, 2017.

(d) A vehicle owner is eligible to participate in the Program if the vehicle owner:

  (1) Is a resident of the State;

  (2) Does not have the required security on a vehicle;

  (3) Has delinquent uninsured vehicle penalties that became delinquent before January 1, 2014; and

  (4) Has not been issued a judgment by the Central Collection Unit.

(e)

  (1) The Administration shall notify vehicle owners who may be eligible to participate in the Program at their last known address.

  (2) The notification to a vehicle owner shall include:

    (i) The Administration's Web site address and the Maryland Insurance Administration's Web site address, where the owner may find contact information for insurers that write motor vehicle liability insurance in the State and other information about motor vehicle insurance; and

    (ii) The total delinquent uninsured vehicle penalties that the owner owes and the amount of the penalties that may be waived under the Program.

(f)

  (1) In accordance with paragraphs (2) and (3) of this subsection, the Administration shall waive 80% of a vehicle owner's delinquent uninsured vehicle penalties that became delinquent before January 1, 2014.

  (2)

    (i) As a condition of waiving a portion of a vehicle owner's delinquent uninsured vehicle penalties under paragraph (1) of this subsection, the Administration shall require the vehicle owner to pay the balance of the delinquent uninsured vehicle penalties owed after subtracting the waived amount under paragraph (1) of this subsection.

    (ii) If a claim against a vehicle owner has been sent to the Central Collection Unit, in addition to the balance owed under subparagraph (i) of this paragraph, the vehicle owner shall pay a Central Collection Unit fee calculated as a percentage of the amount of the balance owed under subparagraph (i) of this paragraph.

    (iii)

      (1) Except as provided in subsubparagraph 2 of this subparagraph, the Administration shall require a vehicle owner to 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.

      (2) The Administration may allow an owner to 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:

      (A) The first payment to be due on entry into the Program; and

      (B) The remaining balance owed to be paid within 6 months after entry into the Program.

  (3)

    (i) As a condition of waiving a portion of delinquent uninsured vehicle penalties on a vehicle owner under paragraph (1) of this subsection, the Administration shall require the vehicle owner to purchase and maintain the required security on the vehicle for the period of time specified in subparagraph (ii) of this paragraph.

    (ii)

      (1) Except as provided in subsubparagraph 2 of this subparagraph, the Administration shall require the required security on the vehicle to be maintained for a period of at least 6 months.

      (2) The Administration may require that the required security on the vehicle be maintained for a period of at least 1 year if the waiver amount under paragraph (1) of this subsection exceeds $3,000.

(g) The Administration may adopt regulations to carry out the provisions of this section.

(h)

  (1) Beginning July 1, 2018, there is a Program to Incentivize and Enable Uninsured Vehicle Owners to Be Insured, administered by the Uninsured Division of the Maryland Automobile Insurance Fund under Sec. 20-612 of the Insurance Article.

  (2) The Administration:

    (i) Shall waive delinquent uninsured vehicle penalties as provided in Sec. 20-612 of the Insurance Article; and

    (ii) If conditions specified under Sec. 20-612 of the Insurance Article are not met, may reinstate the waived delinquent uninsured motorist penalties.

---

Md. Code Ann., Transp. (as displayed at mgaleg.maryland.gov, October 16, 2026)