§ 5218. Procedure for "hit and run" cases. (a) Any qualified person
having a cause of action for death or personal injury arising out of the
ownership, maintenance or use of a motor vehicle in this state, when the
identity of the motor vehicle and of the operator and owner cannot be
ascertained or it is established that the motor vehicle was at the time
of the accident, in the possession of a person without the owner's
consent and that the identity of such person cannot be ascertained may,
upon notice to the corporation, apply to a court for an order permitting
an action therefor against the corporation in that court.

(b) The court may proceed upon the application in a summary manner and
may make an order permitting the action when after a hearing it is
satisfied that:

(1) the applicant has complied with the requirements of section five
thousand two hundred eight of this article;

(2) the applicant is a qualified person;

(3) the injured or deceased person was not at the time of the accident
operating an uninsured motor vehicle or operating a motor vehicle in
violation of an order of suspension or revocation;

(4) the applicant has a cause of action against the operator or owner
of the motor vehicle;

(5) all reasonable efforts have been made to ascertain the identity of
the motor vehicle and of the owner and operator and either the identity
of the motor vehicle and the owner and operator cannot be established,
or the identity of the operator, who was operating the motor vehicle
without the owner's consent, cannot be established; and

(6) the application is not made by or on behalf of an insurer or
surety under circumstances described in paragraph six of subsection (a)
of section five thousand two hundred eleven of this article.

(c) In any action in which the plaintiff is a qualified person, for
the death of, or bodily injury to, any person arising out of the
ownership, maintenance or use of a motor vehicle in this state and
judgment is rendered for the defendant on the sole ground that the death
or personal injury was occasioned by a motor vehicle: (i) the identity
of which, and of the owner and operator of which, has not been
established, or (ii) which was in the possession of some person other
than the owner or his agent without the consent of the owner and the
identity of the operator has not been established, that ground shall be
stated in the judgment. The plaintiff, upon complying with paragraph one
of subsection (a) of section five thousand two hundred eight of this
article, may within three months from the date of the entry of the
judgment make application to bring an action upon the cause against the
corporation in the manner provided in this section.

(d) In any action commenced in respect of the death or injury of any
person arising out of the ownership, maintenance or use of a motor
vehicle in this state the plaintiff shall be entitled to make the
corporation a party defendant if the court has entered the order
provided for in subsection (a) of this section.

(e) The corporation may generally deny the allegations of the
complaint and shall not be required to set forth the facts upon which it
relies. It may assert any defense which would have been available to
the operator or owner if the action had been brought against them and
process in the action had been duly served within this state upon them.

(f) (1) The corporation may settle without court approval any claim or
action if the board, after due deliberation: (i) determines that the
claim or action is asserted or brought pursuant to this section; (ii) is
satisfied that the settlement is fair; and (iii) approves payment which
in no event shall exceed the applicable amount specified in section five
thousand two hundred ten of this article.

(2) Settlement of claims and actions without court order shall not
apply to settlement of claims or actions by infants or judicially
declared incompetents.

(g) (1) Any judgment obtained pursuant to this section shall be
reduced by any amount recovered by the plaintiff as specified in
paragraph seven of subsection (a) of section five thousand two hundred
eleven of this article. Upon conclusion of all proceedings, including
appeals and reviews, the court shall order the corporation to pay the
plaintiff the amount of the judgment or the applicable amount specified
in subsection (a) of section five thousand two hundred ten of this
article, whichever is less.

(2) Upon payment by the corporation it shall be subrogated to the
cause of action of the judgment creditor against the operator and owner
of the motor vehicle by which the accident was occasioned. It may bring
an action against either or both of such persons for the amount of the
damage sustained by the judgment creditor when the identity of either
becomes known. It shall be entitled to recover the amount of the damage
out of any funds which would be payable in respect to the death or
injury under any policy of insurance which was in force at the time of
the accident. Money collected in excess of all amounts paid by the
corporation shall be paid to the judgment creditor.