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Bill > HB1098


MD HB1098

MD HB1098
Insurance - Automobile Insurance - Maryland Automobile Insurance Fund and Affordability Study


summary

Introduced
02/05/2025
In Committee
04/04/2025
Crossed Over
03/17/2025
Passed
04/07/2025
Dead
Signed/Enacted/Adopted
05/06/2025

Introduced Session

2025 Regular Session

Bill Summary

Requiring the Maryland Automobile Insurance Fund to calculate and report its risk based capital level in accordance with certain provisions of insurance law and maintain total adjusted capital in a certain amount; establishing that certain provisions of insurance law regarding prior approval rate making apply to the Fund during a certain time period and under certain circumstances; requiring the Maryland Insurance Administration to establish a workgroup to study automobile insurance affordability; etc.

AI Summary

This bill addresses several key provisions related to the Maryland Automobile Insurance Fund (MAIF) and automobile insurance affordability. The bill requires MAIF to calculate and report its Risk-Based Capital (RBC) level, mandating that by December 31, 2026, the fund must maintain total adjusted capital at or above its Company Action Level RBC. The bill modifies the rate-making process for MAIF, applying different regulatory provisions for rate determination between July and December 2025, and potentially beyond depending on the fund's financial status. Additionally, the bill establishes a workgroup within the Maryland Insurance Administration to conduct a comprehensive study on automobile insurance affordability, examining factors such as premium rate increases, transparency, affordability definitions, and the financial status of private passenger automobile insurers. The workgroup will consist of representatives from the legislature, insurance administration, MAIF, insurers, consumer advocacy groups, and insurance producers, and is required to submit a report with findings and recommendations to the Governor and General Assembly by January 1, 2026. The bill takes effect on July 1, 2025, with the workgroup provision set to expire on June 30, 2026, unless further action is taken.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (2)

Last Action

Approved by the Governor - Chapter 395 (on 05/06/2025)

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