Bill > SB893

This bill enhances insurance regulation in Maryland by introducing several key provisions aimed at improving insurance company practices, claim handling, and consumer protection. The bill establishes more rigorous standards for insurers' claims-handling practices, requiring them to assign licensed adjusters, evaluate claims fairly, communicate honestly with policyholders, and maintain detailed records of communications. It also introduces a more sophisticated risk-based approach to insurance company examinations, with the Insurance Commissioner required to prioritize examinations of insurers based on factors like financial condition, market conduct, and potential risks to policyholders. The bill mandates that insurers create comprehensive claims-handling manuals, offer premium discounts for hurricane mitigation improvements, and provides guidelines for temporarily suspending the writing of new homeowner's insurance policies. Additionally, the bill requires quarterly and annual reporting by the Insurance Commissioner to the state legislature, detailing enforcement actions, license revocations, examinations, and investigations. The legislation aims to increase transparency, improve claims processing, and protect consumers by establishing clearer standards and oversight for insurance companies operating in Maryland, with an effective date of October 1, 2025.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0893?ys=2025RS