1. (a)

   1. (1) In this section the following words have the meanings indicated.
   2. (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. (3) “Motor vehicle rental company” has the meaning stated in § 17-104.3 of this article.
   4. (4) “Rental agreement” has the meaning stated in § 17-104.3 of this article.

2. (b)

   1. (1) Except as provided in paragraph (2) of this subsection, this section applies only to:

      1. (i) Rental vehicle transactions originating in the State; and
      2. (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. (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.

3. (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. (1) Fails to deliver notice of the claim;
   2. (2) Fails to cooperate with the insurer;
   3. (3) Prejudiced the handling of the third-party claim before the insurer assumed the handling of the claim;

   4. (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:

      1. (i) The rental agreement; or
      2. (ii) An insurance policy sold to the renter in connection with, and incidental to, the rental of the motor vehicle; or
   5. (5) Fails to provide the notices required under § 18-102(a)(3) of this subtitle or § 17-104(f) of this article.
4. (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.

Added by Acts 2019, c. 471, § 1, eff. Jan. 1, 2020; Acts 2019, c. 472, § 1, eff. Jan. 1, 2020.