Bill > HB1387

This bill proposes to change the commission rate that the Maryland Automobile Insurance Fund (MAIF) must pay to a "fund producer," which is an agent or broker who sells insurance policies for the MAIF. Specifically, for private passenger auto insurance policies, the bill would remove the current requirement that the commission rate be at least 10% of the total premium, allowing the MAIF to determine the rate within a range of 5% to 15%. The bill also adds a provision that the MAIF will not pay a commission on policies sold directly by the MAIF without the involvement of a fund producer. These changes are intended to give the MAIF more flexibility in setting commission rates and to clarify situations where commissions are not paid, with the act taking effect on October 1, 2026.