# COMAR Title 11 — Department of Transportation

## Subtitle 18 — Motor Vehicle Administration — Financial Responsibility Requirements

### Chapter 01 — Insurance Requirements

**Authority:** Transportation Article, §§12-104(b), 17-103, and 18-102, Annotated Code of Maryland

**Administrative History:** Effective date: January 27, 1975 (2:3 Md. R. 153)

**Administrative History:** Regulation .01 adopted effective January 23, 1981 (8:2 Md. R. 115)

**Administrative History:** Regulation .01C amended effective November 26, 1990 (17:23 Md. R. 2733)

**Administrative History:** Regulations .02—.05 adopted effective November 4, 1977 (4:23 Md. R. 1735)

**Administrative History:** Regulation .02 amended effective December 9, 1991 (18:24 Md. R. 2645)

**Administrative History:** Regulation .03 repealed effective November 26, 1990 (17:23 Md. R. 2733)

**Administrative History:** Regulation .04 amended and recodified to Regulation .03 effective November 26, 1990 (17:23 Md. R. 2733)

**Administrative History:** Regulation .03 amended effective December 9, 1991 (18:24 Md. R. 2645)

**Administrative History:** Regulation .04 amended effective December 9, 1991 (18:24 Md. R. 2645)

**Administrative History:** Regulation .04 repealed effective April 8, 1996 (23:7 Md. R. 553)

**Administrative History:** Regulation .05 repealed effective November 26, 1990 (17:23 Md. R. 2733)

**Administrative History:** Regulation .06 adopted effective December 14, 1979 (6:25 Md. R. 1983)

**Administrative History:** Regulation .06 recodified to Regulation .04 effective November 26, 1990 (17:23 Md. R. 2733)

#### Regulation .01 Financial Responsibility Insurance Requirements under Titles 17 and 18 of Transportation Article, Annotated Code of Maryland.

*COMAR 11.18.01.01*

A. Evidence of required security as provided for in Transportation Article, §17-103, shall be provided before the registration of a vehicle in this State.

B. The application for registration shall be on a form provided by the Administration and shall include the name of the insurance company, the name of the authorized agent, if any, the policy or binder number, and any other information that may be deemed necessary by the Administration.

C. If the applicant for registration is approved as a self-insurer as provided for in Transportation Article, §17-103(a)(2), the self-insurer's name and certificate number shall be indicated on the application for registration.

D. If the required security terminates during the registration period, the vehicle owner shall provide the Administration with the name of the insurance company replacing the terminated coverage, the name of the authorized agent, if any, the policy or binder number, and the effective date of the policy.

#### Regulation .02 Minimum Amount of Security.

*COMAR 11.18.01.02*

A motor vehicle, trailer, or semitrailer that is rented or leased within the State shall provide, by the terms of its insurance policy, at least the minimum amount of security required under Transportation Article, §17-103, Annotated Code of Maryland, irrespective of the fact that the motor vehicle rented or leased may be registered or titled in a state or jurisdiction other than Maryland.

#### Regulation .03 Requirements for Renting or Leasing Vehicles.

*COMAR 11.18.01.03*

A. A person in the business of renting or leasing motor vehicles, trailers, or semitrailers shall file with the Financial Responsibility Division of the Administration, for each vehicle rented or leased, a copy of the liability insurance policy or proof of Maryland self-insurance certification required under Transportation Article, Titles 17 and 18, Annotated Code of Maryland, and a copy of the standard rental or lease agreement upon demand. The insurance policy or self-insurer shall provide primary coverage to the owner, the lessee, and each person driving or using the motor vehicle, trailer, or semitrailer with permission of the owner or lessee, notwithstanding any provisions of the rental or lease agreement to the contrary. The owner of the motor vehicle, trailer, or semitrailer which is to be rented or leased for a period exceeding 180 days may satisfy the owner's obligation to provide security by requiring the lessee to procure the security.

B. The owner of a motor vehicle, trailer, or semitrailer which is to be rented or leased for commercial use may satisfy the owner's obligation to provide security by requiring the lessee to procure the security, provided the lessor has in place, on file and approved by the Administration, one of the following in the event of default of the lessee to maintain primary coverage:

  (1) Contingent liability coverage, including uninsured motorist coverage in the same amounts as provided by the lessee in the primary coverage;

  (2) Approved Maryland self-insurance certification; or

  (3) A surety bond on file with the Administration in the minimum amount of $500,000, including uninsured motorist coverage in the same amounts as provided by the lessee in the primary coverage.

### Chapter 02 — Self-Insurers

**Authority:** Transportation Article, §§12-104(b), 17-103, and 20-105.1, Annotated Code of Maryland

**Administrative History:** Effective date: December 1, 1973

**Administrative History:** Amended effective July 21, 1976 (3:15 Md. R. 792)

**Administrative History:** Regulations .01 and .02 amended effective February 4, 1976 (3:3 Md. R. 153)

**Administrative History:** Regulations .03 and .04 adopted effective February 4, 1976 (3:3 Md. R. 153)

**Administrative History:** Regulation .05 adopted effective October 31, 1988 (15:22 Md. R. 2558)

**Administrative History:** Regulation .05A amended effective January 1, 1992 (18:25 Md. R. 2756)

**Administrative History:** Regulations .01—.05 repealed and new Regulations .01—.07 adopted effective February 27, 1995 (22:4 Md. R. 237)

**Administrative History:** Regulation .01 amended as an emergency provision effective October 5, 2011 (38:23 Md. R. 1417); amended permanently effective January 9, 2012 (38:27 Md. R. 1764)

**Administrative History:** Regulation .02B amended effective February 10, 2020 (47:3 Md. R. 172)

**Administrative History:** Regulation .03 amended effective February 10, 2020 (47:3 Md. R. 172)

**Administrative History:** Regulation .08 adopted as an emergency provision effective October 5, 2011 (38:23 Md. R. 1417); amended permanently effective January 9, 2012 (38:27 Md. R. 1764)

#### Regulation .01 Scope.

*COMAR 11.18.02.01*

These regulations are designed to govern all self-insurers in the State, except the federal government and the State government unless otherwise provided.

#### Regulation .02 Definitions.

*COMAR 11.18.02.02*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Administration” means the Motor Vehicle Administration.

  (2) “Class A self-insurer” means:

    (a) A person or business, except taxicab operations, leasing or rental companies, and governmental entities; or

    (b) An interstate trucking company in whose name less than 26 vehicles are registered as owner or lessee in this State, but which has a fleet of 26 or more registered vehicles.

  (3) “Class B self-insurer” means a Maryland taxicab company.

  (4) “Class C self-insurer” means:

    (a) A public utility;

    (b) A quasigovernmental agency, including a public entity as defined in Article 48A, §482B(a), Annotated Code of Maryland; or

    (c) A local government.

  (5) “Class D self-insurer” means a person in the business of leasing or renting vehicles.

  (6) “Temporary substitute vehicle” means a vehicle acquired to temporarily replace a vehicle which is out of service.

#### Regulation .03 Conditions for Certification as a Self-Insurer.

*COMAR 11.18.02.03*

A. An applicant for certification as a self-insurer shall:

  (1) Provide the same benefits required by Transportation Article, Title 17, Annotated Code of Maryland, and by a political subdivision, regulatory agency, or commission which regulates the self-insurer;

  (2) File an application for Maryland self-insurance annually accompanied by:

    (a) A nonrefundable actuarial fee as set forth in COMAR 11.11.05;

    (b) A security of a type and amount acceptable to the Administration;

    (c) A listing of vehicles that includes for each vehicle the:

      (i) Make;

      (ii) Model;

      (iii) Year;

      (iv) Vehicle identification number;

      (v) Tag number; and

      (vi) Title number; and

    (d) Reviewed financial statements for the past 3 years prepared by a certified public accountant;

  (3) Own or lease 26 or more vehicles directly or by an association approved by the Administration;

  (4) Open its books and records to the Administration for audit and inspection as requested during normal business hours;

  (5) Notify the Administration within 30 days of any material changes in management or of substantial financial changes having a negative effect on the applicant's net worth;

  (6) Comply with applicable fair claim settlement practice regulations as set forth by the Maryland Insurance Administration in COMAR 31.15.07.03;

  (7) Comply with all applicable rules and regulations as set forth by the Public Service Commission or the local jurisdiction;

  (8) Upon demand, furnish to the Administration an audit of claims and reserves prepared in accordance with generally accepted accounting practices by an independent auditing firm or by the Administration at the expense of the Administration;

  (9) Notify the Administration within 21 days of any transfer of a vehicle being transferred in or out of the self-insurance program; and

  (10) File with the Administration, on forms approved by the Administration, accurate information on the permit holder, vehicle owner, and association to which they belong for each vehicle in the self-insurance program.

B. A replacement or newly acquired vehicle, as those terms are defined in the industry, or a temporary substitute vehicle as defined in Regulation .02 of this chapter, shall automatically be covered under the self-insurance agreement.

C. Each self-insurance certification expires annually on January 31.

#### Regulation .04 Security Requirements for Self-Insurers.

*COMAR 11.18.02.04*

A. The Administration may require a deposit of:

  (1) Money;

  (2) An irrevocable letter of credit;

  (3) Other securities as may be appropriate; or

  (4) A surety bond, in a form and amount determined by the Administration as sufficient, to provide protection to the public.

B. An irrevocable letter of credit or a surety bond filed with the Administration shall include a provision that the Administration will receive notice of cancellation at least 30 days before the cancellation date.

C. Money, Securities, or Surety Bond.

  (1) A deposit of money or securities may be used by the Administrator for outstanding unpaid final judgments against the named self-insured, within statutory limits.

  (2) A deposit of money, securities, or a surety bond may be released only if the Administration is satisfied that all claims have been satisfied and that the applicable statutes of limitation have expired.

D. The minimum security for self-insurance certification required for each class of self-insurer is, for:

  (1) Class A, security in the amount of $250,000;

  (2) Class B, a dedicated claim reserve fund with a minimum balance of $250,000 and irrevocable letters of credit for $100,000 increased each year for 5 years, as shown below:

  (3) Class C, a letter of guarantee that any valid claims will be paid, signed by the chief executive and chief financial officers, or, in the case of a local government, the top elected official and the comptroller; and

  (4) Class D, acceptable security in the amount of:

    (a) $500,000; or

    (b) $250,000, with an excess or reinsurance policy acceptable to the Administration.

E. The letters of credit required in §D(2) of this regulation shall:

  (1) Be issued January 1 of each year,

  (2) Be received by January 1 of each year,

  (3) Be payable on demand to the Motor Vehicle Administration upon presentation of a final judgment against the named self-insured, within statutory limits, that remains unsatisfied, and

  (4) Remain in effect for a period of 3 years after termination of self-insured status to cover claims that may be filed within the statutes of limitation, unless superseded by a bond or other evidence of financial security satisfactory to the Administration.

#### Regulation .05 Grounds for Denial, Suspension, or Revocation.

*COMAR 11.18.02.05*

The self-insurance certificate of any self-insured may be suspended, cancelled, denied, or not renewed, after reasonable notice and opportunity to be heard, for the following reasons:

A. Failing to maintain:

  (1) The security or bond required by the Administration,

  (2) The dedicated claim reserve fund as established in Regulation .04 of this chapter,

  (3) An adequate dollar reserve fund for open claims, or

  (4) The information as set forth in the application and sworn to by the applicants;

B. Committing an unfair claim settlement practice as set forth in COMAR 31.15.07.03, when relevant and applicable as determined by the Administration;

C. Failing to:

  (1) Make claim files available for inspection by authorized Administration personnel under Regulation .03A(4) of this chapter,

  (2) Release information regarding open or closed claims to an authorized representative of the Administration,

  (3) Respond to claimants and adjust claims in a timely manner, consistent with general automobile insurance industry standards,

  (4) Cooperate in an audit or investigation conducted by Administration personnel during an audit of the self-insured's records or financial status, or

  (5) Maintain proper proportional registration when applicable;

D. A determination by the Administration that the self-insured is financially insolvent or that the appropriate security levels have decreased to the point that the Administration determines there may be a diminishing level of protection afforded;

E. Knowingly allowing anyone to operate or to attempt to operate, or failing to take adequate precautions to reasonably limit access to operate, a vehicle insured under a self-insurance program in an unlawful manner or by a person not qualified to do so under the laws of Maryland.

#### Regulation .06 Appeals and Hearings.

*COMAR 11.18.02.06*

A. Appeals of decisions related to the self-insurance program shall be submitted in writing to the Self-Insurance Program Manager, by registered or certified mail.

B. A hearing on a contested decision of the Self-Insurance Program Manager shall be conducted in accordance with the procedures in COMAR 11.11.02.

#### Regulation .07 Notifications and Filings.

*COMAR 11.18.02.07*

A. Correspondence, notifications, and inquiries pertaining to this chapter shall be addressed to the Manager, Self-Insurance Program, Maryland Motor Vehicle Administration, 6601 Ritchie Highway, N.E., Glen Burnie, MD 21062.

B. Notifications regarding security expirations, cancellations, or terminations shall be sent by certified mail, and shall contain the name and certificate number of the self-insured.

#### Regulation .08 Self-Insurance Card.

*COMAR 11.18.02.08*

A. For the purposes of this regulation, self-insurers include:

  (1) The State Government;

  (2) Class A self-insurers;

  (3) Class B self-insurers;

  (4) Class C self-insurers; and

  (5) Class D self-insurers.

B. Upon approval in the program, or a change in the self-insurer’s third-party administrator or third party-adjuster, each self-insurer shall provide the Administration the self-insurer’s third-party administrator’s or third-party adjuster’s:

  (1) Name;

  (2) Address; and

  (3) Telephone number.

C. The Administration shall provide to self-insurers, in a format determined by the Administration, self-insurance certification for each vehicle upon:

  (1) Initial registration into the program;

  (2) Renewal; and

  (3) Additions to the self-insurer’s vehicle fleet.

D. The self-insurer’s insurance card shall include the self-insurer’s:

  (1) Name;

  (2) Address;

  (3) Certificate number;

  (4) Self-insurer’s third-party administrator’s or third-party adjuster’s:

    (a) Name;

    (b) Address;

    (c) Telephone number;

  (5) Vehicle identification number; and

  (6) Any other relevant information.

E. Each self-insurer shall maintain, in each self-insured vehicle:

  (1) A self-insurance card; or

  (2) Evidence of self-insurance containing the information required by §D of this regulation, in a format approved by the Administration.

F. Each self-insurer shall have a 60-day grace period for newly acquired vehicles or vehicles for which there has been a change of self-insurer, allowing time for the Administration to provide the self-insurance card. During that time, for proof of self-insurance, the self-insurers shall maintain a copy of the self-insurer’s certificate in the vehicle.

### Chapter 03 — Adjustment of Uninsured Motorist Penalty Fee for Lapse of Insurance

**Authority:** Transportation Article, §§12-104(b) and 17-106(e), Annotated Code of Maryland

**Administrative History:** Effective date: August 7, 1989 (16:15 Md. R. 1651)

**Administrative History:** Regulation .01 amended effective January 1, 1992 (18:25 Md. R. 2756); June 18, 2007 (34:12 Md. R. 1067)

**Administrative History:** Regulation .02F amended effective November 13, 2000 (27:22 Md. R. 2061)

**Administrative History:** Regulation .02 amended effective June 18, 2007 (34:12 Md. R. 1067)

**Administrative History:** Regulation .03 amended effective June 18, 2007 (34:12 Md. R. 1067)

#### Regulation .01 Purpose.

*COMAR 11.18.03.01*

This chapter establishes guidelines for determining when a penalty assessed under Transportation Article, §17-106(e), Annotated Code of Maryland, may be adjusted.

#### Regulation .02 Adjustment of Penalty Assessment.

*COMAR 11.18.03.02*

The penalty may be adjusted in the following situations, upon presentation of:

A. Written verification from a licensed insurance company that the insurance company has erred;

B. Written verification from a licensed insurance company that the vehicle was insured during the entire period in question;

C. A certified statement and evidence acceptable to the Administration from the vehicle owner that the vehicle:

  (1) Was not operated during the period of lapse;

  (2) Was not involved in an accident or collision during the period of lapse;

  (3) Was not issued a citation during the period of lapse; and

  (4) Had no prior insurance lapse; or

D. Written verification from the Maryland Insurance Administration that the vehicle owner, with good intent to be insured, paid the proper premiums to an insurance agent, insurance broker, or insurance company, who failed to provide motor vehicle liability insurance.

#### Regulation .03 Condition of Acceptance.

*COMAR 11.18.03.03*

Prior to an adjustment under Regulation .02 of this chapter, the Administration shall review all information submitted and may conduct an investigation to verify its accuracy.

### Chapter 04 — Reporting Requirements for Lapse or Termination of Required Security

**Authority:** Transportation Article, §§12-104(b), 17-101, 17-103, 17-104, and 17-106; Insurance Article, §27-611; Annotated Code of Maryland

**Administrative History:** Effective date: October 9, 1995 (22:20 Md. R. 1545)

**Administrative History:** Regulation .01 amended as an emergency provision effective October 1. 2012 (39:20 Md. R. 1304); amended permanently effective January 7, 2013 (39:26 Md. R. 1665)

**Administrative History:** Regulation .01 amended effective March 17, 2025 (52:5 Md. R. 237)

**Administrative History:** Regulation .02B amended as an emergency provision effective October 1. 2012 (39:20 Md. R. 1304); amended permanently effective January 7, 2013 (39:26 Md. R. 1665)

**Administrative History:** Regulation .02B amended effective March 17, 2025 (52:5 Md. R. 237)

**Administrative History:** Regulation .03 amended effective July 23, 2001 (28:14 Md. R. 1323); March 17, 2025 (52:5 Md. R. 237)

**Administrative History:** Regulation .03 amended as an emergency provision effective October 1. 2012 (39:20 Md. R. 1304); amended permanently effective January 7, 2013 (39:26 Md. R. 1665)

**Administrative History:** Regulation .04 adopted effective March 17, 2025 (52:5 Md. R. 237)

#### Regulation .01 Scope.

*COMAR 11.18.04.01*

These regulations apply to mandatory electronic reporting of policies of security and the mandatory electronic Online Insurance Verification (OLV) program operated by the Administration for the purpose of verifying insurance policies in real time.

#### Regulation .02 Definitions.

*COMAR 11.18.04.02*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Administration” means the Motor Vehicle Administration.

  (2) “Fleet policy” has the meaning as stated in Transportation Article, §17-101, Annotated Code of Maryland.

  (3) “Insurance companies” or “insurer” means licensed Maryland providers of required security as defined in Transportation Article, §17-101, Annotated Code of Maryland.

  (4) “Online Insurance Verification (OLV)” means a program operated by the Administration for the purpose of verifying insurance policies in real time.

  (5) “Policy” or “Policies” means a vehicle policy or binder for required security as defined by Transportation Article, §17-101(d), Annotated Code of Maryland, issued by an insurer or other provider of required security.

#### Regulation .03 Reporting Guidelines.

*COMAR 11.18.04.03*

A. Required Reporting. Insurance companies shall report on at least a weekly basis and according to the timeline determined by the Administration, all active policies in an electronic format determined by the Administration.

B. Except for fleet policies as provided in §C of this regulation, notifications of all policies, shall include:

  (1) The name of the insured;

  (2) The Maryland driver's license number of the insured or FEIN if the insured is a business;

  (3) The make of the vehicle;

  (4) The model year of the vehicle;

  (5) The vehicle identification number (VIN);

  (6) The current policy number; and

  (7) The effective date of the policy.

C. For fleet policies, reporting shall include:

  (1) Company additions and deletions; and

  (2) Policy number changes.

D. Rejected Notifications.

  (1) The Administration shall reject notifications of all active policies which do not include all of the items specified in §B of this regulation.

  (2) The insurer shall resubmit notifications rejected under the provisions of §D(1) of this regulation to the Administration by the date of the next regular file submission.

E. The insurer shall provide, at each occurrence when the required security will terminate or be canceled, timely notification to the insured of the penalties that may be imposed by the Administration in accordance with Transportation Article, §17-106, Annotated Code of Maryland, for their failure to return evidence of registration when the required security has ended and is not replaced. The notice shall include the following statements:

  (1) “The registration plates must be returned to the Motor Vehicle Administration on or before the date the insurance policy expires or is canceled”; and

  (2) “Failure to return the registration plates may result in an uninsured motorist penalty fine which is assessed at a rate of $200 for the first 30 days and is increased by $7 each day thereafter until the insurance is replaced or the registration plates are returned. The uninsured motorist penalty fine is assessed per vehicle.”

F. Insurance companies shall report, maintain, and update contact information, in a format required by the Administration, for the purpose of establishing and maintaining a database containing the proper address for providing notice to an insurer under Transportation Article §21–10A–04, Annotated Code of Maryland.

#### Regulation .04 Online Insurance Verification Participation and Program Requirements.

*COMAR 11.18.04.04*

A. Required Participation. All insurance companies shall:

  (1) Participate in the Administration’s OLV program; and

  (2) Support a program where the Administration can electronically access the book of business of insured vehicles at any time.

B. Program Requirements. The OLV Program will consist of the following:

  (1) The Administration will electronically send an inquiry to an insurance company in real time which will include information required by the Administration.

  (2) Insurance companies shall use the data provided by the Administration to determine the policy status on the verification date and return an electronic response, automatically, in real time to the Administration in an electronic format determined by the Administration.

  (3) The response from the insurance company shall be used to validate or remove the existing policy in the records of the Administration.

  (4) The Administration will determine the status of a reported insurance policy at intervals determined by the Administration.