If an individual is unable to purchase auto liability insurance from private insurers, which entity may provide coverage?

• A. The Maryland Auto Insurance Fund (MAIF)
• B. Private insurers
• C. The Federal Auto Insurance Program
• D. The Maryland Life Insurance Fund

Answer: (A)

When private insurers can’t or won’t write auto liability coverage, Maryland uses a residual market to ensure drivers still have mandatory protection. The Maryland Auto Insurance Fund is the state mechanism that steps in to provide auto liability coverage to high‑risk drivers who can’t obtain it from private carriers. If someone qualifies, they obtain a policy through MAIF, with rates and rules set by the fund in line with state requirements. Other options don’t fit because private insurers would be the ones capable of writing coverage in the normal market, there is no federal Auto Insurance Program in Maryland, and the Maryland Life Insurance Fund deals with life insurance, not auto liability.