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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0283*
HOUSE BILL 283
C4 6lr0032
(PRE–FILED) CF SB 52
By: Chair, Judiciary Committee (By Request – Departmental – Maryland
Insurance Administration)
Requested: September 25, 2025
Introduced and read first time: January 14, 2026
Assigned to: Judiciary
A BILL ENTITLED
AN ACT concerning 1
Property Insurance – Settlement of Claims and Notices 2
FOR the purpose of establishing the method for calculating the measure of the actual cash 3
value recovery in the settlement of a first –party claim under a residential or 4
commercial property insurance policy; requiring an insurer that renews a policy of 5
homeowner’s insurance or renter’s insurance to notify the insured, in advance of the 6
renewal, of certain differences between the expiring policy and the renewal policy; 7
and generally relating to property insurance. 8
BY adding to 9
Article – Insurance 10
Section 19–118, 19–217, 27–303(11), and 27–304(19) 11
Annotated Code of Maryland 12
(2017 Replacement Volume and 2025 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Insurance 15
Section 27–303(9) and (10) and 27–304(17) and (18) 16
Annotated Code of Maryland 17
(2017 Replacement Volume and 2025 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Insurance 21
19–118. 22
2 HOUSE BILL 283
(A) THIS SECTION APPLIES ONLY TO A CLAIM MADE UNDER A RESIDENTIAL 1
OR COMMERCIAL PROPERTY INSURANCE POLICY THAT: 2
(1) PROVIDES FOR THE ADJ USTMENT AND SETTLEME NT OF A 3
FIRST–PARTY CLAIM THAT REQUIRES THE REPAIRING, REBUILDING, OR REPLACING 4
OF DAMAGED OR DESTRO YED PROPERTY BASED O N THE ACTUAL CASH VA LUE OF 5
THE PROPERTY; AND 6
(2) IS ISSUED OR RENEWED ON OR AFTER OCTOBER 1, 2026. 7
(B) THE MEASURE OF THE ACTUAL CASH VALUE RECOVERY IN SETTLEMENT 8
OF A CLAIM SHALL BE THE LESSER OF: 9
(1) THE AMOUNT IT WOULD COST THE INSURED TO REPAIR, REBUILD, 10
OR REPLACE THE DAMAG ED OR DESTROYED PROP ERTY LESS A REASONAB LE 11
DEDUCTION FOR PHYSIC AL DEPRECIATION BASED ON THE CONDITION OF THE 12
PROPERTY AT THE TIME OF THE COVERED LOSS; OR 13
(2) THE POLICY LIMIT. 14
(C) (1) THE EXPENSE OF LABOR NECESSARY TO REPAIR , REBUILD, OR 15
REPLACE THE DAMAGED OR DESTROYED PROPERTY: 16
(I) IS NOT A COMPONENT OF PHYSICAL DEPRECIATION; AND 17
(II) EXCEPT AS PROVIDED I N PARAGRAPH (3) OF THIS 18
SUBSECTION, MAY NOT BE TREATED B Y THE INSURER AS HAV ING DEPRECIATED IN 19
VALUE. 20
(2) FOR PURPOSES OF APPLY ING THE PROHIBITION ESTABLISHED 21
UNDER PARAGRAPH (1)(II) OF THIS SUBSEC TION, THE EXPENSE OF LABOR 22
NECESSARY TO REPAIR , REBUILD, OR REPLACE THE DAMAG ED OR DESTROYED 23
PROPERTY SHALL INCLUDE: 24
(I) THE LABOR RATE; 25
(II) ANY OVERHEAD OR PROF IT FEE CHARGED BY TH E 26
PROVIDER OF THE LABOR SERVICES; 27
(III) ANY SALES TAX ON THE LABOR SERVICES; AND 28
(IV) ANY OTHER FEE OR TAX THAT MUST BE PAID TO OBTAIN THE 29
LABOR SERVICES. 30
HOUSE BILL 283 3
(3) THE PROHIBITION ESTAB LISHED UNDER PARAGRA PH (1)(II) OF 1
THIS SUBSECTION DOES NOT APPLY TO THE LABOR COSTS THAT ARE INTRINSICALLY 2
INCLUDED IN THE COST OF MANUFACTURED MATERIALS OR GOODS. 3
19–217. 4
(A) THIS SECTION APPLIES ONLY TO AN INSURER T HAT ISSUES OR 5
DELIVERS A HOMEOWNER ’S INSURANCE OR RENTE R’S INSURANCE POLICY I N THE 6
STATE. 7
(B) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, AT LEAST 8
45 DAYS BEFORE EACH RENEWAL OF A POLICY OF HOMEO WNER’S INSURANCE OR 9
RENTER’S INSURANCE, THE INSURER SHALL PROVIDE TO THE INSURED A WRITTEN 10
NOTICE THAT IDENTIFIES: 11
(1) ANY DIFFERENCE BETWE EN COVERAGE LIMITS U NDER THE 12
EXPIRING POLICY AND COVERAGE LIMITS UNDER THE RENEWAL POLICY; 13
(2) ANY RISK THAT IS COVERED UNDER THE EXPIRING POLICY, BUT IS 14
NOT COVERED UNDER THE RENEWAL POLICY; 15
(3) THE EXTENT TO WHICH COVERAGE OF ANY RISK IS REDUCED OR 16
LIMITED UNDER THE RE NEWAL POLICY, AS COMPARED TO THE E XPIRING POLICY; 17
AND 18
(4) ANY DIFFERENCE BETWEEN DEDUCTIBLES SPECIFIED UNDER THE 19
EXPIRING POLICY AND DEDUCTIBLES SPECIFIED UNDER THE RENEWAL POLICY. 20
(C) THE NOTICE REQUIRED UNDER SUBSECTION (B) OF THIS SECTION: 21
(1) SHALL BE WRITTEN IN CLEAR AND SPECIFIC LANGUAGE; 22
(2) MAY NOT BE PROVIDED IN THE ANNUAL STATEM ENT REQUIRED 23
UNDER § 19–205 OF THIS SUBTITLE; AND 24
(3) MAY BE DELIVERED BY ELECTRONIC MEANS IF THE INSURER 25
COMPLIES WITH THE REQUIREMENTS OF § 27–601.2 OF THIS ARTICLE. 26
(D) AN INSURER IS NOT REQ UIRED TO PROVIDE NOTICE UNDER 27
SUBSECTION (B) OF THIS SECTION IF A LL COVERAGES AND DED UCTIBLES UNDER 28
THE EXPIRING POLICY AND THE RENEWAL POLICY ARE IDENTICAL. 29
27–303. 30
4 HOUSE BILL 283
It is an unfair claim settlement practice and a violation of this subtitle for an insurer, 1
nonprofit health service plan, or health maintenance organization to: 2
(9) fail to act in good faith, as defined under § 27 –1001 of this title, in 3
settling a first–party claim under a policy of property and casualty insurance; [or] 4
(10) fail to comply with the provisions of § 16–118 of this article; OR 5
(11) FAIL TO COMPLY WITH THE PROVISIONS OF § 19–118 OF THIS 6
ARTICLE. 7
27–304. 8
It is an unfair claim settlement practice and a violation of this subtitle for an insurer, 9
nonprofit health service plan, or health maintenance organization, when committed with 10
the frequency to indicate a general business practice, to: 11
(17) fail to comply with the provisions of Title 15, Subtitle 10A of this article; 12
[or] 13
(18) fail to act in good faith, as defined under § 27–1001 of this title, in 14
settling a first–party claim under a policy of property and casualty insurance; OR 15
(19) FAIL TO COMPLY WITH THE PROVISIONS OF § 19–118 OF THIS 16
ARTICLE. 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act applies to all policies 18
and contracts issued, delivered, or renewed in the State on or after October 1, 2026. 19
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 20
October 1, 2026. 21