Md. Code Regs. 11.18.01.03

Current through Register Vol. 51, No. 26, December 27, 2024

Section 11.18.01.03 - Requirements for Renting or Leasing Vehicles

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.

Md. Code Regs. 11.18.01.03

Regulations .03 adopted effective November 4, 1977 (4:23 Md. R. 1735)
Regulation .03 repealed effective November 26, 1990 (17:23 Md. R. 2733)
Regulations .03 effective November 26, 1990 (17:23 Md. R. 2733)
Regulation .03 amended effective December 9, 1991 (18:24 Md. R. 2645)