Bill > SB469

This bill makes two primary changes to Maryland's automobile insurance laws. First, it reduces the maximum percentage that the Board of Directors of the Industry Automobile Insurance Association can allocate for assessments related to the private passenger auto division from 3% to 1%. An assessment is a charge levied by an organization on its members, and in this context, it likely refers to how costs are distributed among insurance companies. Second, the bill authorizes the Executive Director of the Maryland Automobile Insurance Fund (the Fund) to create an affordability program for private passenger auto insurance. This program, which requires approval from the Commissioner of Insurance, can limit the maximum premium rate for eligible individuals, defined as those who meet existing policyholder requirements and have a household income no more than 250% of the federal poverty level. The program has safeguards to prevent excessive overall inadequacy of the Fund's net written premium and ensures that assessment allocation percentages do not exceed the newly established 1% limit. The Commissioner can require modifications to the program if it becomes inadequate or violates other insurance laws, but cannot disapprove it based solely on the Fund's noncompliance with certain capital requirements. This bill is set to take effect on July 1, 2027, and will remain in effect for two years, after which it will be automatically repealed.

Budget and Finance, Justice

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0469?ys=2026RS