838 LAWS OF MARYLAND. [CH. 379

(1) Either a bond in a form to be approved by the Com-
missioner of Motor Vehicles in a company duly licensed to
do business in this State, conditioned on the payment to
the holder of any judgment recovered against the owner
of the motor vehicle for death or personal injury to any
person or persons other than passengers arising out of the
operation in this State of said motor vehicle up to at least
$5, 000 for one person in any one accident, and up to at least
$10, 000 total liability for two or more persons in any one
accident, and conditioned on the payment to the holder of
any judgment recovered against the owner of the motor
vehicle for damage to personal or real property other than
goods carried arising out of the operation in this State of
said motor vehicle up to at least $1, 000 in any one accident;

(2) Or an insurance policy as follows: An insurance
policy in a form to be approved by the Commissioner of
Motor Vehicles in a company duly licensed to do business
in this State, which will insure the owner against any judg-
ment which may be recovered against the owner of the
motor vehicle for death or personal injury to any person
or persons other than passengers arising out of the opera-
tion in this State of said motor vehicle up to at least $5, 000
for any one person in any one accident, and up to at least
$10, 000 total liability for two or more persons in any one
accident, and which will insure the owner against any judg-
ment which may be recovered against him for damage to
, personal or real property other than goods carried arising
out of the operation in this State of said motor vehicle up to
at least $1, 000 in any one accident; provided, however, that
owners who file with the Commissioner of Motor Vehicles
satisfactory proof of their financial ability to pay any
judgment rendered against them as aforesaid shall not be
required to provide either a bond or the insurance policy
mentioned in the preceding section.

(c) The liability of the obligor under the bond or the
insurer under the insurance policy herein provided for shall
become absolute whenever loss or damage covered by such
bond or policy occurs, and the satisfaction by the owner of
a final judgment for such loss or damage shall not be a
condition precedent to the right or obligation of the said
obligor or insurer to make payment on account of such loss
or damage, provided always that the obligor or insurer
shall have the right to settle any claim covered by the policy,
and if such settlement is made in good faith the amount
thereof shall be deductible from the limits of liability spe-
cified in the bond or policy. Any cancellation or annulment
shall be void unless the Commissioner of Motor Vehicles