Residents of Maryland who cannot obtain insurance privately are eligible for insurance sold by the Maryland Automobile Insurance Fund if they meet certain requirements. In 2006 it was the sixth larger private auto insurer in Maryland. In order to meet eligibility requirements for this insurance, drivers are required to previously be rejected by a minimum of two insurers (private). Or they must have had their auto insurance cancelled or failed to be renewed. The non-renewal cannot be for nonpayment of their premiums.
The fund functions just like any other private insurance company in providing insurance. The Maryland Insurance Commissioner is responsible for the regulation of the fund. When no responsible party is evident in situations involving Maryland accidents with uninsured drivers or hit-and-run accidents, the fund pays and processes these claims.
Vehicle owners who want to register a motor vehicle must keep up their primary coverage of $15,000 property damage, $30,000-$60,000 bodily injurty, and $2,500 loss. The quantity of uninsured claims is greatly reduced by this compulsory insurance. However, there are still many uninsured claims because of uninsured drivers from out-of-state and hit-and-run accidents.
The State provides no general funds for MAIF and its assets are not a component of the State Treasury. The fund’s assets come from investment earnings, insurance premiums, funds from uninsured drivers through the Uninsured Unit, and assessments from all automobile insurers.
The fund is governed by a Board of Trustees made up of thirteen members. Seven of the members are appointed by the Governor on the advice of the Senate. Five members are selected by the Board of Directors of the Industry Automobile Insurance Association and serve four-year terms.
The Underwriting Department oversees three units: Private Passenger and Commercial Underwriting, Building Services, and the Customer Service Center.
The Claims Department manages seven units: Material Damage, Casualty, Insured Subrogation, First-Call Express, Property Damage, Personnel Injury Protection, and Special Investigations.
The Information Technology Department oversees five units: Application Programming, Computer Support, Computer Operations and Technical Support, Business Architecture, and Network Systems.