Section 18-106 - Security

(a) (1) In this section the following words have the meanings indicated. (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) 'Motor vehicle rental company' has the meaning stated in § 17–104.3 of this article. (4) 'Rental agreement' has the meaning stated in § 17–104.3 of this article. (b) (1) Except as provided in paragraph (2) of this subsection, this section applies only to: (i) Rental vehicle transactions originating in the State; and (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) This section does not apply to a replacement vehicle under § 18–102(a)(2) of this subtitle or § 17–104(e) of this article. (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) Fails to deliver notice of the claim; (2) Fails to cooperate with the insurer; (3) Prejudiced the handling

n a primary basis for a third–party liability claim if the motor vehicle rental company: (1) Fails to deliver notice of the claim; (2) Fails to cooperate with the insurer; (3) Prejudiced the handling of the third–party claim before the insurer assumed the handling of the claim; (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: (i) The rental agreement; or (ii) An insurance policy sold to the renter in connection with, and incidental to, the rental of the motor vehicle; or (5) Fails to provide the notices required under § 18–102(a)(3) of this subtitle or § 17–104(f) of this article. (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.