(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.