Ch. 77 LAWS OF MARYLAND

insurance, and that no part of the amount so sought will be paid to an insurer to
reimburse or otherwise indemnify the insurer in respect of any amount paid or payable
by the insurer by reason of the existence of such a policy of insurance; and

(vi) The claimant is ineligible to make a claim arising from the same
accident, under Subtitle 33 of this article, against the Property and Casualty Insurance
Guaranty Corporation.

(b) (1) The executive director shall, with respect to the Fund, and the Court of
Appeals shall, with respect to the courts, promulgate rules setting forth procedural
requirements with respect to claims and actions against the Fund filed pursuant to this
section. As a condition precedent to any liability on the part of the Fund under this
section, a claimant shall comply with all such rules. The executive director or his
designee on behalf of the Fund may stipulate that the procedural requirements of such
rules have been met and consent to the claimant bringing an action against the Fund.
No stipulation or consent shall be deemed a waiver of any defense which the Fund may
have with respect to the case.

(2) The Fund may, at any time, without filing a petition for payment or
other court approval, settle, compromise and pay claims and actions brought and
judgments obtained under this section. The executive director shall adopt rules setting
forth the procedure for the settlements or payments. Interest shall accrue from the date
of judgment as provided for in Section 11-107 of the Courts and Judicial Proceedings
Article.

(3) When the Fund has negotiated with the plaintiff or claimant and
obtained an offer of settlement that the Fund finds reasonable, the Fund shall notify
the defendant or uninsured party of the offer in the manner provided by the applicable
rules adopted by the Fund. If the defendant or uninsured party approves the offer, the
plaintiff or claimant shall proceed to settlement as provided by the rules adopted by the
Fund and the Court of Appeals. If the defendant or uninsured party rejects the offer,
the Fund shall cause a notice to be served on the defendant or uninsured party sent by
certified mail, return receipt requested, bearing a postmark from the United States
Postal Service, to his last known address which shall state:

(i) That the Fund shall withdraw from the claim or action without
further notice at the expiration of 30 days from the date of the notice;

(ii) That the defendant or uninsured party has 30 days from the date
of the notice within which to engage counsel of his own selection to defend him in the
claim or action and that his counsel shall enter an appearance for him in any pending
action within the 30 day period or that the defendant or uninsured party may enter an
appearance in his own behalf in the claim or any pending action within that period; and

(iii) That, if the provisions of subparagraph (ii) of this paragraph are
not complied with, at any time after 30 days from the date of the notice and without
further notice, suit may be filed or judgment may be entered against him in the amount
of the settlement offer. After the expiration of any 30 day period of notice to a
defendant or uninsured party, the Fund may settle the claim, file suit, or request the
court to set the action for an expedited hearing. At the hearing the court may proceed

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