License vs. Lien

You could lose your license if your subrogation lien is not satisfied. Maryland is introducing a new bill that will suspend drivers licenses if a medical subrogation lien is not paid.

Maryland SB 373 - introduced

Under Maryland Senate Bill 373, a driver’s license or registration suspension would remain suspended until a judgment is stayed, satisfied, or the debtor obtains an order allowing payment of the judgment in installments and payments are not in default. Should the debtor fail to make such payments, the Administration shall suspend the debtor's license and registration on all vehicles in the state until judgment is satisfied.

Further, upon receipt of a judgment and certificate of facts from the insurer who is or represents a judgment creditor, the Administration would be required to suspend the debtor's license and registration of all vehicles owned and registered in the State. The Administration may NOT suspend license or registration if:

  1. The accident was caused by a vehicle that was owned or leased by the US, State, or political subdivision OR operated with the permission of the owner or lessee at the time of the collision,

  2. The insurer was obligated to pay the judgment,

  3. The debtor or vehicle was authorized to do business in the state, or

  4. The insurer went into insolvency, reorganization, or liquidation after the accident but before settlement.

The bill has been referred to the Judicial Proceedings Committee and would take effect October 1, 2021, if passed.

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