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
Senator Jackson
Last action
2026-05-26
Official status
Approved by the Governor - Chapter 796
Effective date
2026-10-01
Plain English Breakdown
Checked against official source text during the last sync.
Maryland Automobile Insurance Fund Commission Rate
This law changes the minimum commission rate that the Maryland Automobile Insurance Fund must pay to fund producers for private passenger auto insurance policies from 10% to 5%, and it stops the Fund from paying commissions when a policy is written directly by the Fund without a fund producer's involvement.
What This Bill Does
Changes the minimum commission rate paid by the Maryland Automobile Insurance Fund to fund producers for private passenger auto insurance policies from 10% to 5%. The maximum remains at 15% of the total premium.
Prohibits the Fund from paying a commission when a policy is written directly by the Fund without involving a fund producer.
Requires that any unearned commissions be refunded if a policy issued by the Fund is canceled.
Who It Names or Affects
The Maryland Automobile Insurance Fund
Fund producers who sell private passenger auto insurance policies through the Fund
Terms To Know
Commission rate
A percentage of a policy's total premium that is paid to someone for selling or producing an insurance policy.
Fund producer
An individual or company that sells insurance policies on behalf of the Maryland Automobile Insurance Fund.
Limits and Unknowns
The law does not specify how the change in commission rate will affect fund producers' income.
It is unclear if this change will impact policyholders' premiums directly.
Amendments
These notes stay tied to the official amendment files and metadata from the legislature.
Plain English: AMENDMENTS TO SENATE BILL 637
(First Reading File Bill)
AMENDMENT NO.
AMENDMENTS TO SENATE BILL 637
(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 796
2026-04-02House
Favorable Report by Judiciary
2026-03-18House
Third Reading Passed (116-3)
2026-03-17House
Favorable Adopted Second Reading Passed
2026-03-17Senate
Returned Passed
2026-03-09Senate
Favorable with Amendments Report by Finance
2026-03-01House
Referred Judiciary
2026-02-27Senate
Third Reading Passed (45-0)
2026-02-25Senate
Favorable with Amendments { 723628/1 Adopted
2026-02-25Senate
Second Reading Passed with Amendments
2026-02-11Senate
Hearing 2/25 at 1:00 p.m.
2026-02-05Senate
First Reading Finance
Maryland General Assembly
Text - First - Maryland Automobile Insurance Fund - Fund Producer Minimum Commission Rate - Repeal
Maryland General Assembly
Vote - Senate - Committee - Finance
Maryland General Assembly
Text - Third - Maryland Automobile Insurance Fund - Fund Producer Commission Rate
Maryland General Assembly
Vote - House - Committee - Judiciary
Maryland General Assembly
Text - Chapter - Maryland Automobile Insurance Fund - Fund Producer Commission Rate
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.
*sb0637*
SENATE BILL 637
C4 6lr3262
CF HB 1387
By: Senator Jackson
Introduced and read first time: February 5, 2026
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 25, 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 SENATE BILL 637
(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 WITH OUT 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.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.