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965
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MARVIN MANDEL, Governor
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GOVERNMENTAL VEHICLE.
THE ADMINISTRATION MAY NOT SUSPEND A LICENSE OR
REGISTRATION UNDER THIS SUBTITLE IF THE JUDGMENT AROSE
OUT OF AN ACCIDENT CAUSED BY A VEHICLE THAT, AT THE TIME
OF THE ACCIDENT:
(1) WAS OWNED OR LEASED BY THE UNITED STATES, THIS
STATE, OR ANY POLITICAL SUBDIVISION OF THIS STATE; AND
(2) HAS OPERATED WITH THE PERMISSION OF ITS OWNER
OR LESSEE.
REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 66 1/2,
§7-205.
17-206. SAME - EXCEPTION AS TO JUDGMENT FOR WHICH
INSURER WAS OBLIGATED TO PAY.
(A) GENERAL RULE.
(1) THE ADMINISTRATION MAY NOT SUSPEND A
LICENSE OR REGISTRATION UNDER THIS SUBTITLE IF THE
ADMINISTRATION FINDS THAT AN INSURER HAS OBLIGATED TO PAY
THE JUDGMENT, AT LEAST TO THE EXTENT AND AMOUNTS REQUIRED
BY THE MARYLAND VEHICLE LAW, EVEN IF THE JUDGMENT HAS NOT
BEEN PAID FOR ANY REASON.
(2) A FINDING BY THE ADMINISTRATION THAT AN
INSURER HAS OBLIGATED TO PAY A JUDGMENT DOES NOT BIND
THE INSURER AND, EXCEPT FOR ADMINISTERING THE PROVISIONS
OF THIS SECTION, HAS NO LEGAL EFFECT.
(3) NOTWITHSTANDING ANY FINDING BY THE
ADMINISTRATION, PARAGRAPH (1) OF THIS SUBSECTION DOES NOT
APPLY IF, IN A JUDICIAL PROCEEDING, A COURT DETERMINES BY
A FINAL ORDER OR DECREE THAT THE INSURER IS NOT OBLIGATED
TO PAY THE JUDGMENT.
(B) WHEN INSURER GOES INTO INSOLVENCY,
REORGANIZATION, OR LIQUIDATION.
THE ADMINISTRATION MAY NOT SUSPEND A LICENSE OR
REGISTRATION UNDER THIS SUBTITLE IF:
(1) THE JUDGMENT DEBTOR OR THE VEHICLE TO
WHICH THE JUDGMENT RELATES WAS INSURED BY AN INSURER
THAT HAS AUTHORIZED TO DO BUSINESS IN THIS STATE;
(2) AFTER THE ACCIDENT INVOLVING THE OWNER OR
DRIVER AND BEFORE SETTLEMENT OF THE CLAIM, THE INSURER
WENT INTO INSOLVENCY, REORGANIZATION, OR LIQUIDATION;
AND
(3) AS A RESULT OF THE INSOLVENCY,
REORGANIZATION, OR LIQUIDATION, NO BENEFIT, OTHER THAN
BENEFITS USED EXCLUSIVELY TOWARDS SATISFYING THE
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