Maryland Automobile Insurance Fund - Fund Producer Commission Rate
Maryland Automobile Insurance Fund - Fund Producer Commission Rate
Enacted
This bill passed the Legislature and reached final enactment based on the latest official action.
Sponsor
Delegates Coley , Phillips , Rogers , Ruff , Stinnett , and Taylor
Last action
2026-05-26
Official status
Approved by the Governor - Chapter 795
Effective date
2026-10-01
Plain English Breakdown
Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.
Maryland Automobile Insurance Fund - Fund Producer Commission Rate
Altering the minimum commission rate from 10% to 5% of the total premium that the Maryland Automobile Insurance Fund is required to pay to a fund producer of a policyholder to whom a policy is issued for private passenger auto insurance; and prohibiting the Fund from paying a commission to a fund producer for a policy written directly by the Fund without the involvement of a fund producer.
What This Bill Does
Altering the minimum commission rate from 10% to 5% of the total premium that the Maryland Automobile Insurance Fund is required to pay to a fund producer of a policyholder to whom a policy is issued for private passenger auto insurance; and prohibiting the Fund from paying a commission to a fund producer for a policy written directly by the Fund without the involvement of a fund producer.
Limits and Unknowns
This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.
Amendments
These notes stay tied to the official amendment files and metadata from the legislature.
Plain English: AMENDMENTS TO HOUSE BILL 1387
(First Reading File Bill)
AMENDMENT NO.
AMENDMENTS TO HOUSE BILL 1387
(First Reading File Bill)
AMENDMENT NO.
1
On page 1, in line 2, strike “ Minimum”; in line 3, strike “ – Repeal”; in line 4,
strike “repealing” and substitute “ altering”; and in line 6, after “insurance” insert “ ;
prohibiting the Fund from paying a commission to a fund producer for a policy written
directly by the Fund without the involvement of a fund producer”.
AMENDMENT NO.
2
On page 1, in line 20, strike the brackets; and in the same line, strike “10%” and
substitute “5%”.
Bill History
2026-05-26Post Passage
Approved by the Governor - Chapter 795
2026-04-10Senate
Favorable Report by Finance
2026-04-01House
Returned Passed
2026-03-26Senate
Third Reading Passed (46-0)
2026-03-23Senate
Favorable Adopted
2026-03-23Senate
Second Reading Passed
2026-03-18House
Favorable with Amendments Report by Judiciary
2026-03-05House
Third Reading Passed (128-3)
2026-03-04House
Favorable with Amendments { 823029/1 Adopted
2026-03-04House
Second Reading Passed with Amendments
2026-03-03Senate
Referred Finance
2026-02-16House
Hearing 3/10 at 1:00 p.m.
2026-02-13House
First Reading Judiciary
Maryland General Assembly
Text - First - Maryland Automobile Insurance Fund - Fund Producer Minimum Commission Rate - Repeal
Maryland General Assembly
Vote - House - Committee - Judiciary
Maryland General Assembly
Text - Third - Maryland Automobile Insurance Fund - Fund Producer Commission Rate
Maryland General Assembly
Vote - Senate - Committee - Finance
Official Summary Text
Altering the minimum commission rate from 10% to 5% of the total premium that the Maryland Automobile Insurance Fund is required to pay to a fund producer of a policyholder to whom a policy is issued for private passenger auto insurance; and prohibiting the Fund from paying a commission to a fund producer for a policy written directly by the Fund without the involvement of a fund producer.
Current Bill Text
Read the full stored bill text
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb1387*
HOUSE BILL 1387
C4 6lr3254
CF SB 637
By: Delegates Coley, Phillips, Rogers, Ruff, Stinnett, and Taylor
Introduced and read first time: February 13, 2026
Assigned to: Judiciary
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 4, 2026
CHAPTER ______
AN ACT concerning 1
Maryland Automobile Insurance Fund – Fund Producer Minimum Commission 2
Rate – Repeal 3
FOR the purpose of repealing altering the minimum commission rate that the Maryland 4
Automobile Insurance Fund is required to pay to a fund producer of a policyholder 5
to whom a policy is issued for private passenger auto insurance; prohibiting the Fund 6
from paying a commission to a fund producer for a policy written directly by the Fund 7
without the involvement of a fund producer; and generally relating to the Maryland 8
Automobile Insurance Fund. 9
BY repealing and reenacting, with amendments, 10
Article – Insurance 11
Section 20–512 12
Annotated Code of Maryland 13
(2017 Replacement Volume and 2025 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Insurance 17
20–512. 18
(a) Except as provided in subsection (b) of this section, the Fund shall pay to a 19
fund producer of a policyholder to whom a policy is issued a commission: 20
2 HOUSE BILL 1387
(1) for private passenger auto insurance issued by the Fund, at a rate 1
determined by the Fund but [not less than 10% 5% and] not to exceed 15% of the total 2
premium; and 3
(2) for any other insurance issued by the Fund, at a rate determined by the 4
Fund but not to exceed 10% of the total premium. 5
(b) The Fund may not pay a commission: 6
(1) on a fully earned basis; 7
(2) if a prospective insured fails to qualify under § 20 –502 of this subtitle; 8
or 9
(3) if a prospective insured’s initial payment to the Fund, a fund producer, 10
or premium finance company is not honored; OR 11
(4) ON A POLICY WRITTEN DIRECTLY BY THE FUND WITHOUT THE 12
INVOLVEMENT OF A FUND PRODUCER. 13
(c) If a policy issued by the Fund is canceled, the Fund shall refund any unearned 14
commissions. 15
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2026. 17
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.