Sec. 14.07.04.06. Settlement of Claims Involving Known Uninsured Motorists

A. When the Fund has received a Notice of Claim, it shall attempt to contact the uninsured owner or operator, or both, to investigate the liability and damages on the part of the uninsured. It shall also negotiate with claimants to compensate them promptly, fairly, and equitably.

B. If a claimant does not arrive at an agreed settlement with the Fund, the Fund shall notify the claimant in writing that the claimant's only remedy will be to file suit against the uninsured owner or operator. The Fund may not be a party to the suit until the claimant has first obtained a judgment against the uninsured owner or operator or unless the Fund elects to intervene as a party. The Fund may not be obligated to intervene.

C. The Fund may seek to obtain a consent agreement from the uninsured owner or operator in the form of either a confessed judgment or confessed judgment promissory note before the claimant is paid. If the uninsured does not consent within 60 days, then the Fund may not delay its negotiations with a claimant in further efforts to obtain the uninsured's consent. In any case, the claimant shall sign a proper release and subrogation agreement in favor of the Fund before payment can be made.

D. If all parties agree to a settlement, the Fund will pay the claimant for the claim when all appropriate documents have been executed. If the Fund believes that obtaining a prompt judgment against the uninsured is necessary in a particular case, then payment may not be made until a final judgment, consent or otherwise, against the uninsured has been entered or assigned in favor of the Fund.

E. If the uninsured does not settle with the claimant and the Fund, the Fund shall give the uninsured owner or operator notice, by certified mail, return receipt requested, to the uninsured owner or operator's last known address, as provided for in Article 48A, §243H(b)(3), Annotated Code of Maryland. After 30 days have passed, the Fund may settle with the claimant or require the claimant to proceed to file suit and proceed to trial against the uninsured owner or operator. If the Fund elects to settle, the claimant shall assign his judgment or causes of action against the uninsured to the Fund and agree to cooperate in any suit or trial which the Fund may bring against the uninsured. If a claimant does not cooperate at any time during the suit or trial, the claimant may be compelled to cooperate by court order.

F. The Fund may assign counsel to represent an uninsured owner or operator. The uninsured owner or operator shall cooperate with the Fund in the defense of the action. If the uninsured does not cooperate, the Fund may apply to the court for an order directing cooperation or may send the uninsured owner or operator notice of the Fund's and counsel's withdrawal in the manner provided for in Article 48A, §243H(b)(3), Annotated Code of Marylandand by rule of court.

G. The written notice which the Fund shall give of its proposed settlement or payment with the claimant under §E of this regulation shall be as follows:

(1) Content of Notice. The notice shall:

(a) Set forth the amount and all other pertinent terms of the proposed settlement or payment, as well as the terms and conditions of any repayment which the Fund shall require of the uninsured owner or operator;

(b) Advise the uninsured owner or operator of the owner or operator's right to contest the proposed settlement or payment, as to the owner or operator's liability for the accident or the amount of the damages claimed, or both, by informing the Fund in writing of the uninsured's objection within 30 days of the date of mailing appearing on the notice;

(c) Advise the uninsured owner or operator that judgment for the amount of the settlement may be entered and enforced against him.

(2) Manner of Giving Notice. If the identity and whereabouts of the uninsured owner or operator are known or if his identity is known but his current whereabouts are unknown, the notice shall be sent by certified mail, return receipt requested, directed to his last known address, or his last address or record on file with the Motor Vehicle Administration of this State or of the state of his residence.