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*sb0469*
SENATE BILL 469
C4 (6lr2708)
ENROLLED BILL
— Finance/Judiciary —
Introduced by Senator Hayes
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at _________________ _______ o’clock, ________M.
______________________________________________
President.
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
2 SENATE BILL 469
Section 20–101(a), (b), (d), (f), and (g) and 20–507(a), (c), and (e) 1
Annotated Code of Maryland 2
(2017 Replacement Volume and 2025 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – Insurance 5
Section 20–301(a) 20–405(d) and 20–507(b) 6
Annotated Code of Maryland 7
(2017 Replacement Volume and 2025 Supplement) 8
BY adding to 9
Article – Insurance 10
Section 20–521 11
Annotated Code of Maryland 12
(2017 Replacement Volume and 2025 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – Insurance 16
20–101. 17
(a) In this title the following words have the meanings indicated. 18
(b) “Association” means the Industry Automobile Insurance Association. 19
(d) “Board of Directors” means the Board of Directors of the Association. 20
(f) “Executive Director” means the Executive Director of the Fund. 21
(g) “Fund” means the Maryland Automobile Insurance Fund. 22
20–301. 23
(a) The purpose of the Fund is to provide the financial security required under § 24
17–103 of the Transportation Article AT AFFORDABLE RATES to those eligible persons 25
that are unable to obtain it from an Association member. 26
20–405. 27
(d) (1) The Board of Directors shall calculate assessment allocation 28
percentages for commercial auto and private passenger auto divisions by dividing the most 29
recent certified assessment for commercial auto and private passenger auto divisions by 30
the total of: 31
SENATE BILL 469 3
(i) the respective aggregate net direct written premiums obtained 1
under subsection (c) of this section; and 2
(ii) the respective total net direct written premiums of the Fund for 3
the same period. 4
(2) The assessment allocation percentage for the priv ate passenger auto 5
division may not exceed [3%] 1%. 6
20–507. 7
(a) Subject to the authority of the Commissioner to determine whether rates are 8
excessive, inadequate, or unfairly discriminatory, as provided in Title 11, Subtitle 2 or 9
Subtitle 3 of this article, the Executive Director shall determine the premiums to be charged 10
on policies issued by the Fund. 11
(b) (1) Except as provided in subsections (c) and (d) of this section, the 12
provisions of Title 11, Subtitle 3 of this article apply to the determinatio n of premiums by 13
the Executive Director and the filing of rates with the Commissioner. 14
(2) Notwithstanding Title 11, Subtitle 2 or Subtitle 3 of this article or any 15
other provision of this title, the Executive Director may: 16
(I) base premiums on one or both of the following items: 17
[(i)] 1. the number of points accumulated by an insured or 18
applicant for insurance under the point system provided for in Title 16, Subtitle 4 of the 19
Transportation Article; or 20
[(ii)] 2. the prior claims experience o f an insured or applicant for 21
insurance; AND 22
(II) ESTABLISH AN AFFORDA BILITY PROGRAM THAT MAY 23
OTHERWISE BE CONSIDE RED INCONSISTENT WIT H TITLE 11, SUBTITLE 2 OR 24
SUBTITLE 3 OF THIS ARTICLE IN ACCORDANCE WITH § 20–521 OF THIS SUBTITLE. 25
(c) The provisions of Title 11, Subtitle 2 of this article apply to the determination 26
of premiums by the Executive Director and the filing of rates with the Commissioner: 27
(1) between July 1, 2025, and December 31, 2025, both inclusive; and 28
(2) beginning January 1, 2026, if the Fund’s total adjusted capital is less 29
than the amount required under § 20–306(c) of this title. 30
4 SENATE BILL 469
(e) In reviewing rates filed by the Fund, the Commissioner shall consider not only 1
the rating principles under Title 11, Subtitle 2 or Sub title 3 of this article but also the 2
statutory purpose of the Fund under § 20–301 of this title. 3
20–521. 4
(A) IN THIS SECTION , “AFFORDABILITY PROGRA M” MEANS A PROGRAM 5
THAT LIMITS THE MAXIMUM PREMIUM RATE FOR A POLICY OF PRIVATE PASSENGER 6
AUTO INSURANCE ISSUED BY THE FUND IN AN AMOUNT THAT MAY BE INADEQUATE. 7
(B) SUBJECT TO REVIEW AND APPROVAL BY THE COMMISSIONER, THE 8
EXECUTIVE DIRECTOR MAY ESTABLISH AN AFFORDABILITY PROGRAM IF: 9
(1) RATES ARE NOT EXCESSIVE OR UNFAIRLY DISCRIMINATORY; AND 10
(2) THE AFFORDABILITY PROGRAM DOES NOT RESULT IN: 11
(I) AN OVERALL INADEQUAC Y GREATER THAN 20% OF THE 12
FUND’S NET WRITTEN PREMIUM; OR 13
(II) AN ASSESSMENT ALLOCATION PERCENTAGE THAT EXCEEDS 14
THE LIMIT ESTABLISHED IN § 20–405(D) OF THIS TITLE. 15
(C) AN INDIVIDUAL IS ELIGIBLE FOR A PO LICY THROUGH THE 16
AFFORDABILITY PROGRAM IF THE INDIVIDUAL: 17
(1) MEETS THE ELIGIBILIT Y REQUIREMENTS FOR P OLICYHOLDERS 18
UNDER § 20–502 OF THIS SUBTITLE; AND 19
(2) HAS A HOUSEHOLD INCO ME THAT IS NOT MORE THAN 250% OF 20
THE FEDERAL POVERTY LEVEL. 21
(D) THE COMMISSIONER MAY REQU IRE THE FUND TO MODIFY THE 22
AFFORDABILITY PROGRAM IF THE COMMISSIONER DETERMINES THAT: 23
(1) THE RATES OFFERED TH ROUGH THE AFFORDABIL ITY PROGRAM 24
DO NOT MEET THE REQUIREMENTS OF THIS SECTION; 25
(2) THE AFFORDABILITY PROGRAM WILL NO LONG ER MEET THE 26
CONDITION ESTABLISHED UNDER SUBSECTION (B)(2)(I) OR (II) OF THIS SECTION ; 27
OR 28
(3) THE AFFORDABILITY PROGRAM VIOLATES OTHER PROVISIONS OF 29
THIS ARTICLE TO WHICH THE FUND IS SUBJECT. 30
SENATE BILL 469 5
(E) THE COMMISSIONER MAY NOT DISAPPROVE OR REQUIRE THE 1
MODIFICATION OF AN A FFORDABILITY PROGRAM BASED ON THE FUND’S 2
NONCOMPLIANCE WITH § 20–306 OF THIS TITLE. 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 4
October July 1, 2026 2027. It shall remain effective for a period of 2 years and, at the end 5
of June 30, 2029, this Act, with no further action required by the General Assembly, shall 6
be abrogated and of no further force and effect. 7
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.