Md. Code Regs. 20.95.01.18

Current through Register Vol. 52, No. 1, January 10, 2025

Section 20.95.01.18 - Insurance or Bond for Motor Vehicles Carrying Passengers

A. Requirements. A motor vehicle carrying passengers for which a permit is necessary may not be operated unless the owner maintains a liability insurance policy or bond for that vehicle. The required insurance shall have a term of coverage of 6 months or more.

B. Liability Insurance.

(1) The minimum per accident insurance required for each motor vehicle with a seating capacity of seven passengers or less is:

(a) $50,000 for injury to any one person, $100,000 for injuries to two or more persons, and $20,000 for property damage; or

(b) $120,000 combined single limit.

(2) The minimum per accident insurance required for each motor vehicle with a seating capacity between eight to 15 passengers is:

(a) $75,000 for injury to any one person, $200,000 for injuries to two or more persons, and $50,000 for property damage; or

(b) $250,000 combined single limit.

(3) The minimum per accident insurance required for each vehicle with a seating capacity of 16 passengers or more is:

(a) $75,000 for injury to any one person, $400,000 for injuries to two or more persons, and $100,000 for property damage; or

(b) $500,000 combined single limit.

C. Bond Instead of Insurance.

(1) If an owner of a motor vehicle used to carry passengers elects a bond instead of insurance, the amount of the bond is:

(a) Determined by the number of vehicles covered by and described in the bond;

(b) Determined by the designed passenger seating capacity of the motor vehicle; and

(c) As set out in the following table:

NUMBER OF VEHICLES	REQUIRED AMOUNT OF BONDNUMBER OF PASSENGERS
	7 or less	8-15	16 or more
(i) For one vehicle only	$120,000	$325,000	$575,000
(ii 2 to 5 vehicles, inclusive	150,000	355,000	605,000
(iii) 6 to 15 vehicles,inclusive	180,000	385,000	635,000
(iv) 16 to 30 vehicles,inclusive	210,000	415,000	665,000
(v) 31 to 50 vehicles, inclusive	240,000	445,000	695,000
(vi) 51 to 80 vehicles,inclusive	270,000	475,000	725,000
(vii) 81 to 120 vehicles,inclusive	300,000	505,000	755,000
(viii) 121 to 170 vehicles,inclusive	330,000	535,000	785,000
(ix) 171 to 230 vehicles,inclusive	360,000	565,000	815,000
(x) 231 to 300 vehicles,inclusive	390,000	595,000	845,000

(2) The bonding company shall guarantee the prompt payment by the owner of indemnities for personal injuries or for property damage resulting from any accident due to the negligence of the operator, to the extent of the damages sustained, but not less than the amounts described under §B of this regulation whichever section applies to the owner.

(3) The penalty of the bond instead of insurance may not be exhausted by successive recoveries but shall remain unimpaired until the bond is cancelled.

(4) If the bond instead of insurance is cancelled or if the owner's operation is terminated or interrupted at any time, the bonding company shall proceed to make settlement of all then outstanding indemnity claims, in conformity with the limitations of §C(2) of this regulation except that the aggregate amount of the settlements may not exceed the penal sum of the bond instead of insurance.

D. Compliance.

(1) An owner shall file with the Commission:

(a) An original certificate of insurance signed by an authorized agent of an insurance company, indicating that the policy has been issued, specifying the terms of the policy and the name of insured; or

(b) A certified copy of the bond instead of insurance showing similar information.

(2) The insurance company and the insurance broker shall be licensed to do business in Maryland as required by Insurance Article, Annotated Code of Maryland.

(3) The Public Service Commission shall be shown as a certificate holder on the liability insurance policy.

(4) The certificate of insurance shall list, either typed on the face of the certificate or on the insurance company letterhead attached to the certificate, the year, make, and serial number of each motor vehicle that is covered by the insurance policy.

E. Notice.

(1) A liability insurance policy or bond instead of insurance under this regulation shall contain a clause requiring at least 10 days written notice to the Commission and the insured before a policy or bond may be cancelled.

(2) The holder of a permit authorizing the transportation of passengers shall give the Commission at least 10 days written notice of any proposed change affecting the liability insurance policy or bond instead of insurance required by this regulation.

Md. Code Regs. 20.95.01.18

Regulation .18 adopted effective December 9, 1991 (18:24 Md. R. 2646)
Regulation .18A amended effective April 10, 1995 (22:7 Md. R. 539)
Regulation .18B amended effective September 28, 1992 (19:19 Md. R. 1714)