MARYLAND AUTOMOBILE INSURANCE FUND

ORIGIN & FUNCTIONS

[photo, 1215 East Fort Ave., Baltimore, Maryland] In 1957, the Maryland Automobile Insurance Fund (MAIF) began as the Unsatisfied Claim and Judgment Fund Board authorized by the General Assembly (Chapter 836, Acts of 1957). The Maryland Automobile Insurance Fund was created to replace the Maryland Automobile Insurance Plan and the Unsatisfied Claim and Judgment Fund, effective January 1, 1973 (Chapter 73, Acts of 1972).


1215 East Fort Ave., Baltimore, Maryland, August 2015. Photo by Diane F. Evartt.

The Maryland Automobile Insurance Fund (also known as Maryland Auto Insurance) sells automobile liability insurance to Marylanders who are unable to obtain it privately. To be eligible for insurance from the Fund, a driver must have been rejected by at least two private insurers or have had automobile insurance cancelled or not renewed for any reason other than nonpayment of premiums. In providing insurance, the Fund acts as any private insurance company and is subject to regulation by the Maryland Insurance Commissioner. The Fund also processes and pays certain claims to Maryland residents who are involved in Maryland accidents with uninsured motorists or in hit-and-run incidents where no responsible party can be found.

To register a motor vehicle in Maryland, every owner must maintain basic primary coverage of $20,000/ $40,000 bodily injury, $15,000 property damage, and $2,500 economic loss coverage. Such compulsory insurance reduces substantially the number of uninsured claims. Nonetheless, uninsured claims continue due to hit-and-run accidents, out-of-state uninsured drivers, and Marylanders who do not comply with the law.

The Fund receives no General Funds from the State, nor are its assets part of the State Treasury. Current Fund assets derive from insurance premiums; earnings from investments; assessments (when required) levied against all automobile insurers; and funds recovered from uninsured motorists. The Fund also receives a portion of the penalties imposed by the Motor Vehicle Administration against uninsured motorists (Code Transportation Article, secs. 17-101 through 17-110; Insurance Article, secs. 20-101 through 20-701).

BOARD OF TRUSTEES

The Board of Trustees governs the Maryland Automobile Insurance Fund.

Members are Appointed by the Governor with the advice and consent of the Senate to five-year terms, the Board of Trustees consists of nine members, three of which shall have insurance industry experience and two of which should have financial management experience (Chapters 73 & 74, Acts of 2013; Code Insurance Article, sec. 20-202).

EXECUTIVE DIRECTOR

Appointed by the Board of Trustees, the Executive Director oversees the operations of the Fund and Chairs the Financial Management Committee.

COMMUNICATIONS & CORPORATE RELATIONS DEPARTMENT
Started in 2014 as the Marketing and Communications Department, the Communications and Corporate Relations Department assumed its current name in 2019.

The Department conducts outreach to Insurance Producers, Community Organizations, and other stakeholders.

FISCAL DEPARTMENT
All financial aspects of the Maryland Automobile Insurance Fund are managed by the Fiscal Department.

Under the Department are three units: Finance and Budget, Uninsured Accounting and Collections, and Producer Accounting.

OPERATIONS

Operations directs three departments: Claims, Information Technology, and Underwriting and Product Management.

CLAIMS DEPARTMENT
The Claims Department investigates and adjudicates claims presented to the Maryland Auto Insurance Fund by policyholders, claimants, and other insurance carriers.

Six units fall under the Department: Casualty, Insured Subrogation, Material Damage, Personal Injury Protection and Uninsured, Property Damage, and Special Investigations.

INFORMATION TECHNOLOGY DEPARTMENT
Under the Information Technology Department are five units: Application Programming, Business Architecture, Computer Operations and Technical Support, the Computer Support Center, and Network Systems.

UNDERWRITING & PRODUCT MANAGEMENT DEPARTMENT
In 2014, the Underwriting and Product Management Department formed from the Underwriting Department.

The Department manages the Private Passenger and Commercial Underwriting insurance policies written by the Fund.

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