Bill > SB697

This bill modifies the rules for premium discounts offered by the Maryland Automobile Insurance Fund (MAIF), a state-run insurance program designed to provide auto insurance to high-risk drivers who might struggle to obtain coverage through traditional insurance companies. The bill requires that any premium reduction MAIF provides must be explicitly tied to two key criteria: first, the income level of the insured individual, and second, must be actuarially justified, meaning the discount must be mathematically supported by statistical risk assessment data. This approach aims to make premium discounts more targeted and based on demonstrable financial need and risk factors. The changes will take effect on October 1, 2025, giving the Maryland Automobile Insurance Fund time to adjust its discount methodology to comply with the new requirements.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0697?ys=2025RS