(a)    (1)    In this section the following words have the meanings indicated.

(2)    “Authorized driver” means a person, other than the renter, who uses or operates a rental vehicle with the permission of the motor vehicle rental company.

(3)    “Motor vehicle rental company” has the meaning stated in § 17–104.3 of this article.

(4)    “Rental agreement” has the meaning stated in § 17–104.3 of this article.

(b)    (1)    Except as provided in paragraph (2) of this subsection, this section applies only to:

(i)    Rental vehicle transactions originating in the State; and

(ii)    Third–party claims against a renter or an authorized driver of a rental vehicle arising out of the security requirement under § 18–102(a)(2) of this subtitle or § 17–104(e) of this article.

(2)    This section does not apply to a replacement vehicle under § 18–102(a)(2) of this subtitle or § 17–104(e) of this article.

(c)    A motor vehicle rental company shall be responsible for providing the required security under § 17–103 of this article on a primary basis for a third–party liability claim if the motor vehicle rental company:

(1)    Fails to deliver notice of the claim;

(2)    Fails to cooperate with the insurer;

(3)    Prejudiced the handling of the third–party claim before the insurer assumed the handling of the claim;

(4)    Has provided liability, property damage, uninsured motorist, or other coverage to the insured that is applicable to the third–party claim as a benefit under either:

(i)    The rental agreement; or

(ii)    An insurance policy sold to the renter in connection with, and incidental to, the rental of the motor vehicle; or

(5)    Fails to provide the notices required under § 18–102(a)(3) of this subtitle or § 17–104(f) of this article.

(d)    A motor vehicle rental company shall be responsible for providing the required security under § 17–103 of this article on a primary basis for a third–party liability claim if the driver of the rental vehicle is an individual who is not the renter or an authorized driver.