# 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**Administrative History:** Regulation .03 repealed effective November 26, 1990 (17:23 Md.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**Administrative History:** Regulation .04 repealed effective April 8, 1996 (23:7 Md.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**Administrative History:** Regulation .05 repealed effective November 26, 1990 (17:23 Md.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.