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*sb0865*
SENATE BILL 865
C4 6lr3384
By: Senator A. Washington
Introduced and read first time: February 6, 2026
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 1, 2026
CHAPTER ______
AN ACT concerning 1
Workgroup on the Affordability of Private Passenger Automobile Insurance – 2
Extension and Alteration of Membership and Duties 3
FOR the purpose of extending the termination date and altering the membership and 4
duties of the Workgroup on the Affordability of Private Passenger Automobile 5
Insurance; and generally relating to the Workgroup on the Affordability of Private 6
Passenger Automobile Insurance. 7
BY repealing and reenacting, with amendments, 8
Chapter 395 of the Acts of the General Assembly of 2025 9
Section 2 and 3 10
Preamble 11
WHEREAS, Chapter 395 of the Acts of the General Assembly of 2025 required the 12
Maryland Insurance Administration to establish a workgroup to study the affordability of 13
private passenger automobile insurance and to report findings and recommendations to the 14
Governor and the General Assembly; and 15
WHEREAS, The workgroup submitted its final report on December 22, 2025, which 16
provided extensive background analysis of affordability, rate regulation, and the cost to 17
drivers in the private passenger automobile insurance market; and 18
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WHEREAS, The report identifies significant disparities in affordability in 1
majority–minority and lower –income zip codes and acknowledges that geographic and 2
nondriving rating factors may contribute to those disparities; and 3
WHEREAS, Despite identifying territorial rating and other nondriving rating 4
factors as key areas of concern, the workgroup did not reach consensus and did not provide 5
specific legislative recommendations to modify or reform the use of territorial rating in 6
Maryland; and 7
WHEREAS, On numerous major policy questions affecti ng affordability, including 8
territorial rating, low –cost insurance options, and relief mechanisms for high –cost 9
communities, the workgroup recommended only further study and deferred the 10
development of concrete legislative proposals; and 11
WHEREAS, The Gen eral Assembly finds that additional work is necessary to 12
produce data–driven, actionable recommendations that will reduce premiums for Maryland 13
motorists, reduce unjustified geographic and racial disparities, and provide the legislature 14
with specific policy options to reform rating practices in the private passenger automobile 15
insurance market; now, therefore, 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Chapter 395 of the Acts of 2025 19
SECTION 2. AND BE IT FURTHER ENACTED, That: 20
(a) (1) The Maryland Insurance Administration shall establish a workgroup 21
to study: 22
(i) the affordability of private passenger automobile insurance in 23
the State, including factors that contribute to premium rate i ncreases and trends in rate 24
increases; 25
(ii) policy options to provide greater transparency regarding 26
automobile insurance premiums and to increase the affordability of automobile insurance 27
in the State; 28
(iii) ways in which the term “affordability” has been or may be 29
defined in the context of the establishment of private passenger automobile insurance 30
premium rates; 31
(iv) methodologies by which affordability can be considered in 32
establishing private passenger automobile insurance rates consistent with rate making 33
principles codified in the Insurance Article; and 34
SENATE BILL 865 3
(v) the current financial status of private passenger automobile 1
insurers in the State and potential options to address excess profits. 2
(2) In conducting the study under paragraph ( 1) of this subsection, the 3
workgroup shall seek and consider input from relevant stakeholders, including the 4
reinsurance industry. 5
(3) (I) THE SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, 6
THE WORKGROUP SHALL DEVE LOP, THROUGH A PROCESS IN VOLVING RECORDED 7
VOTING, DATA–DRIVEN, CONCRETE LEGISLATIVE RECOMMENDATIONS TO REDUCE 8
PREMIUMS, INCLUDING SPECIFIC R ECOMMENDATIONS REGAR DING THE USE OF 9
TERRITORIAL RATING A ND OTHER RATING FACT ORS THAT MAY CONTRI BUTE TO 10
DISPARATE IMPACTS. 11
(II) IN DEVELOPING THE SPE CIFIC RECOMMENDATION S 12
REGARDING THE USE OF TERRITORIAL RATING A ND OTHER RATING FACT ORS 13
UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE WORKGROUP SHALL 14
CONSIDER THE IMPACT OF ANY MODIFICATIONS OR ALTERN ATIVE RATING 15
APPROACHES ON RATES ACROSS THE STATE. 16
(b) The workgroup consists of the following members: 17
(1) one member of the Senate of Maryland who is a member of the Finance 18
Committee, appointed by the President of the Senate; 19
(2) one member of t he House of Delegates who is a member of the 20
[Economic Matters] JUDICIARY Committee, appointed by the Speaker of the House; 21
(3) the Maryland Insurance Commissioner or the Commissioner’s 22
designee; 23
(4) the Executive Director of the Maryland Automobile Insurance Fund, or 24
the Executive Director’s designee; and 25
(5) the following members, appointed by the chair of the workgroup: 26
(i) one representative of an automobile insurer or automobile 27
insurer trade association; 28
(ii) one representative of a c onsumer advocacy group that is active 29
in the area of automobile insurance; [and] 30
(iii) one representative of private passenger automobile insurance 31
producers in the State; AND 32
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(IV) ONE REPRESENTATIVE OF THE NATIONAL ASSOCIATION OF 1
MUTUAL INSURANCE COMPANIES; 2
(V) ONE ACTUARY WHO IS A MEMBER OF THE AMERICAN 3
ACADEMY OF ACTUARIES; AND 4
(IV) (VI) TWO REPRESENTATIVES OF A NONPROFIT RESEARCH 5
OR CONSUMER ADVOCACY ORGANIZATION WITH DEMONSTRATED EXPERTI SE IN 6
AUTOMOBILE INSURANCE RATING PRACTICES AND AFFORDABILITY. 7
(c) The Maryland Insurance Commissioner or the Commissioner’s designee shall 8
chair the workgroup. 9
(d) (1) On or before January 1, 2026, the workgroup shall report its fi ndings 10
and recommendations to the Governor and, in accordance with § 2 –1257 of the State 11
Government Article, the General Assembly. 12
(2) ON OR BEFORE JANUARY 1, 2027, THE WORKGROUP SHALL 13
SUBMIT AN UPDATED RE PORT OF ITS FINDINGS AND RECOMMENDATIONS THAT 14
INCLUDES THE RECOMMENDATIONS REQUIRED UNDER SUBSECTION (A)(3) OF THIS 15
SECTION TO THE GOVERNOR AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE 16
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. 17
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 18
1, 2025. Section 2 of this Act shall remain effective for a period of [1 year] 2 YEARS and, at 19
the end of June 30, [2026] 2027, Section 2 of this Act, with no further action required by 20
the General Assembly, shall be abrogated and of no further force and effect. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 22
1, 2026. 23
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.