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

A nine-member Board of Trustees governs the Fund. Members are appointed by the Governor with Senate advice and serve for five-year terms (Chapters 73 & 74, Acts of 2013; Code Insurance Article, sec. 20-202).

CLAIMS DEPARTMENT

The Claims Department oversees six units: Casualty, Insured Subrogation, Material Damage, Personnel Injury Protection and Uninsured, Property Damage, and Special Investigations.

COMMUNICATIONS & CORPORATE RELATIONS DEPARTMENT

The Communications and Corporate Relations Department formed in 2019 from the former Marketing and Communications Unit.

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

The Underwriting and Product Management Department formed from the Underwriting Department in 2014.

The Department is responsible for Private Passenger and Commercial Underwriting.

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