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*hb0816*
SECOND PRINTING
HOUSE BILL 816
C4 6lr2702
CF SB 469
By: Delegates Taylor, Addison, Amprey, Boafo, Fennell, Harrison, Lewis, Phillips,
Ruff, Smith, Stinnett, Toles, Turner, Wims, and Young Young, Simmons,
Moreno, and Conaway
Introduced and read first time: February 4, 2026
Assigned to: Environment and Transportation
Reassigned: Judiciary, February 6, 2026
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 9, 2026
Returned to second reading: March 10, 2026
House action: Adopted with floor amendments
Read second time: March 10, 2026
CHAPTER ______
AN ACT concerning 1
Maryland Automobile Insurance Fund – Affordability – Purpose of Fund and 2
Authorized Program Program and Industry Automobile Insurance Association 3
Assessments 4
FOR the purpose of altering the purpose of the Maryland Automobile Insurance Fund to 5
specify that the financial security provided by the Fund be provided at rates that are 6
affordable; altering the cap on a certain assessment allocation percentage required 7
to be calculated by the Board of Directors of the Industry Automobile Insurance 8
Association; authorizing the Executive Director of the Maryland Automobile 9
Insurance Fund to establish a certain affordability program subject to certain 10
requirements and modification under certain circumstances; and generally relating 11
to the Maryland Automobile Insurance Fund. 12
BY repealing and reenacting, without amendments, 13
Article – Insurance 14
Section 20–101(a), (b), (d), (f), and (g) and 20–507(a), (c), and (e) 15
Annotated Code of Maryland 16
(2017 Replacement Volume and 2025 Supplement) 17
2 HOUSE BILL 816
BY repealing and reenacting, with amendments, 1
Article – Insurance 2
Section 20–301(a) 20–405(d) and 20–507(b) 3
Annotated Code of Maryland 4
(2017 Replacement Volume and 2025 Supplement) 5
BY adding to 6
Article – Insurance 7
Section 20–521 8
Annotated Code of Maryland 9
(2017 Replacement Volume and 2025 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Insurance 13
20–101. 14
(a) In this title the following words have the meanings indicated. 15
(b) “Association” means the Industry Automobile Insurance Association. 16
(d) “Board of Directors” means the Board of Directors of the Association. 17
(f) “Executive Director” means the Executive Director of the Fund. 18
(g) “Fund” means the Maryland Automobile Insurance Fund. 19
20–301. 20
(a) The purpose of the Fund is to provide the financial security required under § 21
17–103 of the Transportation Article AT AFFORDABLE RATES to those eligible persons 22
that are unable to obtain it from an Association member. 23
20–405. 24
(d) (1) The Board of Directors shall calculate assessment allocation 25
percentages for commercial auto and private passenger auto divisions by dividing the most 26
recent certified assessment for commercial auto and private passenger auto divisions by 27
the total of: 28
(i) the respective aggregate net direct written premiums obtained 29
under subsection (c) of this section; and 30
(ii) the respective total net direct written premiums of the Fund for 31
the same period. 32
HOUSE BILL 816 3
(2) The assessment allocation percentage for the private passenger auto 1
division may not exceed [3%] 1%. 2
20–507. 3
(a) Subject to the authority of the Commissioner to determine whether rates are 4
excessive, inadequate, or unfairly discriminatory, as provided in Title 11, Subtitle 2 or 5
Subtitle 3 of this article, the Executive Director shall determine the premiums to be charged 6
on policies issued by the Fund. 7
(b) (1) Except as provided in subsections (c) and (d) of this section, the 8
provisions of Title 11, Subtitle 3 of this article apply to the determination of premiums by 9
the Executive Director and the filing of rates with the Commissioner. 10
(2) Notwithstanding Title 11, Subtitle 2 or Subtitle 3 of this article or any 11
other provision of this title, the Executive Director may: 12
(I) base premiums on one or both of the following items: 13
[(i)] 1. the number of points accumulated by an insured or 14
applicant for insurance under the point system provided for in Title 16, Subtitle 4 of the 15
Transportation Article; or 16
[(ii)] 2. the prior claims experience of an insured or applicant for 17
insurance; AND 18
(II) ESTABLISH AN AFFORDA BILITY PROGRAM THAT MAY 19
OTHERWISE BE CONSIDE RED INCONSISTENT WIT H TITLE 11, SUBTITLE 2 OR 20
SUBTITLE 3 OF THIS ARTICLE IN ACCORDANCE WITH § 20–521 OF THIS SUBTITLE. 21
(c) The provisions of Title 11, Subtitle 2 of this article apply to the determination 22
of premiums by the Executive Director and the filing of rates with the Commissioner: 23
(1) between July 1, 2025, and December 31, 2025, both inclusive; and 24
(2) beginning January 1, 2026, if the Fund’s total adjusted capital is less 25
than the amount required under § 20–306(c) of this title. 26
(e) In reviewing rates filed by the Fund, the Commissioner shall consider not only 27
the rating principles under Title 11, Subtitle 2 or Subtitle 3 of this article but also the 28
statutory purpose of the Fund under § 20–301 of this title. 29
20–521. 30
4 HOUSE BILL 816
(A) IN THIS SECTION , “AFFORDABILITY PROGRA M” MEANS A PROGRAM 1
THAT LIMITS THE MAXIMUM PREMIUM RATE FOR A POLICY OF PRIVATE PASSENGER 2
AUTO INSURANCE ISSUED BY THE FUND IN AN AMOUNT THAT MAY BE INADEQUATE. 3
(B) SUBJECT TO REVIEW AND APPROVAL BY THE COMMISSIONER, THE 4
EXECUTIVE DIRECTOR MAY ESTABLISH AN AFFORDABILITY PROGRAM IF: 5
(1) RATES ARE NOT EXCESSIVE OR UNFAIRLY DISCRIMINATORY; AND 6
(2) THE AFFORDABILITY PROGRAM DOES NOT RESULT IN: 7
(I) AN OVERALL INADEQUAC Y GREATER THAN 20% OF THE 8
FUND’S NET WRITTEN PREMIUM; OR 9
(II) AN ASSESSMENT ALLOCATION PERCENTAGE THAT EXCEEDS 10
THE LIMIT ESTABLISHED IN § 20–405(D) OF THIS TITLE. 11
(C) AN INDIVIDUAL IS ELIG IBLE FOR A POLICY TH ROUGH THE 12
AFFORDABILITY PROGRAM IF THE INDIVIDUAL: 13
(1) MEETS THE ELIGIBILIT Y REQUIREMENTS FOR P OLICYHOLDERS 14
UNDER § 20–502 OF THIS SUBTITLE; AND 15
(2) HAS A HOUSEHOLD INCOME THA T IS NOT MORE THAN 250% OF 16
THE FEDERAL POVERTY LEVEL. 17
(D) THE COMMISSIONER MAY REQU IRE THE FUND TO MODIFY THE 18
AFFORDABILITY PROGRAM IF THE COMMISSIONER DETERMINES THAT: 19
(1) THE RATES OFFERED TH ROUGH THE AFFORDABIL ITY PROGRAM 20
DO NOT MEET THE REQUIREMENTS OF THIS SECTION; 21
(2) THE AFFORDABILITY PRO GRAM WILL NO LONGER MEET THE 22
CONDITION ESTABLISHED UNDER SUBSECTION (B)(2)(I) OR (II) OF THIS SECTION ; 23
OR 24
(3) THE AFFORDABILITY PROGRAM VIOLATES OTHER PROVISIONS OF 25
THIS ARTICLE TO WHICH THE FUND IS SUBJECT. 26
(E) THE COMMISSIONER MAY NOT DISAPPROVE OR REQUIR E THE 27
MODIFICATION OF AN A FFORDABILITY PROGRAM BASED ON THE FUND’S 28
NONCOMPLIANCE WITH § 20–306 OF THIS TITLE. 29
HOUSE BILL 816 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October July 1, 2026 2027. It shall remain effective for a period of 2 years and, at the end 2
of June 30, 2029, this Act, with no further action required by the General Assembly, shall 3
be abrogated and of no further force and effect. 4
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.