1416                             Laws of Maryland                        Ch. 534

its behalf of notice or process in any action upon the policy or bond
arising out of the accident.

(c)    The department may rely upon the accuracy of the informa-
tion in a required report of an accident as to the existence of insur-
ance or a bond unless and until the department has reason to believe
that the information is erroneous.

(d)    Immediately upon receipt of notice of the accident, the insur-
ance company or surety company which issued the policy or bond
shall furnish the insured a written notice in the form specified by the
department that the policy or bond was in effect at the time of the
accident.

§ 7-205. Form and amount of security.

(a)    The security required under this subtitle shall be in a form
and in an amount as the department requires, but in no case in excess
of the limits specified in section 7-204.

(b)    The person depositing security shall specify in writing the
person or persons on whose behalf the deposit is made and, at any
time while the deposit is in the custody of the department or State
Treasurer, the person depositing it, in writing, may amend the speci-
fication of the person or persons on whose behalf the deposit is made
to include an additional person or persons; but a single deposit of
security shall be applicable only on behalf of persons required to
furnish security because of the same accident.

§ 7-206. Failure to deposit security—suspensions.

(a)    If any person required to deposit security under this subtitle
fails to deposit the security within 10 days after the department has
sent the notice as hereinbefore provided, the department shall there-
upon suspend:

(1)    The license of each driver in any manner involved in the
accident;

(2)    The registrations of all vehicles owned by the owner of each
vehicle of a type subject to registration under the laws of this State
involved in the accident;

(3)    If the driver is a nonresident, the privilege of operating
within this State a vehicle of a type subject to registration under the
laws of this State;

(4)    If the owner is a nonresident, the privilege of the owner to
operate or permit the operation within this State of a vehicle of a
type subject to registration under the laws of this State.

The suspensions shall be made in respect to persons required by
the department to deposit security who fail to deposit security, except
as otherwise provided under succeeding sections of this subtitle.

(b)    The department, in its discretion, may extend the effective
date of the suspensions for 20 days when satisfactory evidence has
been presented that final releases are being negotiated to the satisfac-
tion of all parties.