Bill > SB637

This bill proposes to change how commissions are paid by the Maryland Automobile Insurance Fund (MAIF) to "fund producers," which are individuals or entities that sell insurance policies on behalf of MAIF. Specifically, it aims to remove the current requirement that MAIF must pay fund producers a commission of at least 10% of the total premium for private passenger auto insurance policies. Instead, the bill would allow MAIF to determine the commission rate for these policies, but it would still be capped at a maximum of 15% of the total premium, and a new minimum of 5% is introduced. Additionally, the bill clarifies that MAIF will not pay commissions on policies sold directly by the fund without the involvement of a fund producer. These changes are set to take effect on October 1, 2026.