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WES MOORE, Governor Ch. 742
Chapter 742
(Senate Bill 469)
AN ACT concerning
Maryland Automobile Insurance Fund – Affordability – Purpose of Fund and
Authorized Program Program and Industry Automobile Insurance Association
Assessments
FOR the purpose of altering the purpose of the Maryland Automobile Insurance Fund to
specify that the financial security provided by the Fund be provided at rates that are
affordable; altering the cap on a certain assessment allocation percentage required
to be calculated by the Board of Directors of the Industry Automobile Insurance
Association; authorizing the Executive Director of the Maryland Automobile
Insurance Fund to establish a certain affordability program subject to certain
requirements and modification under certain circumstances; and generally relating
to the Maryland Automobile Insurance Fund.
BY repealing and reenacting, without amendments,
Article – Insurance
Section 20–101(a), (b), (d), (f), and (g) and 20–507(a), (c), and (e)
Annotated Code of Maryland
(2017 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
Article – Insurance
Section 20–301(a) 20–405(d) and 20–507(b)
Annotated Code of Maryland
(2017 Replacement Volume and 2025 Supplement)
BY adding to
Article – Insurance
Section 20–521
Annotated Code of Maryland
(2017 Replacement Volume and 2025 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Insurance
20–101.
(a) In this title the following words have the meanings indicated.
(b) “Association” means the Industry Automobile Insurance Association.
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Ch. 742 2026 LAWS OF MARYLAND
(d) “Board of Directors” means the Board of Directors of the Association.
(f) “Executive Director” means the Executive Director of the Fund.
(g) “Fund” means the Maryland Automobile Insurance Fund.
20–301.
(a) The purpose of the Fund is to provide the financial security required under §
17–103 of the Transportation Article AT AFFORDABLE RATES to those eligible persons
that are unable to obtain it from an Association member.
20–405.
(d) (1) The Board of Directors shall calculate assessment allocation
percentages for commercial auto and private passenger auto divisions by dividing the most
recent certified assessment for commercial auto and private passenger auto divisions by
the total of:
(i) the respective aggregate net direct written premiums obtained
under subsection (c) of this section; and
(ii) the respective total net direct written premiums of the Fund for
the same period.
(2) The assessment allocation percentage for the private passenger auto
division may not exceed [3%] 1%.
20–507.
(a) Subject to the authority of the Commissioner to determine whether rates are
excessive, inadequate, or unfairly discriminatory, as provided in Title 11, Subtitle 2 or
Subtitle 3 of this article, the Executive Director shall determine the premiums to be charged
on policies issued by the Fund.
(b) (1) Except as provided in subsections (c) and (d) of this section, the
provisions of Title 11, Subtitle 3 of this article apply to the determination of premiums by
the Executive Director and the filing of rates with the Commissioner.
(2) Notwithstanding Title 11, Subtitle 2 or Subtitle 3 of this article or any
other provision of this title, the Executive Director may:
(I) base premiums on one or both of the following items:
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WES MOORE, Governor Ch. 742
[(i)] 1. the number of points accumulated by an insured or
applicant for insurance under the point system provided for in Title 16, Subtitle 4 of the
Transportation Article; or
[(ii)] 2. the prior claims experience of an insured or applicant for
insurance; AND
(II) ESTABLISH AN AFFORDABILITY PROGRAM THAT MAY
OTHERWISE BE CONSIDERED INCONSISTENT WITH TITLE 11, SUBTITLE 2 OR
SUBTITLE 3 OF THIS ARTICLE IN ACCORDANCE WITH § 20–521 OF THIS SUBTITLE.
(c) The provisions of Title 11, Subtitle 2 of this article apply to the determination
of premiums by the Executive Director and the filing of rates with the Commissioner:
(1) between July 1, 2025, and December 31, 2025, both inclusive; and
(2) beginning January 1, 2026, if the Fund’s total adjusted capital is less
than the amount required under § 20–306(c) of this title.
(e) In reviewing rates filed by the Fund, the Commissioner shall consider not only
the rating principles under Title 11, Subtitle 2 or Subtitle 3 of this article but also the
statutory purpose of the Fund under § 20–301 of this title.
20–521.
(A) IN THIS SECTION, “AFFORDABILITY PROGRAM” MEANS A PROGRAM
THAT LIMITS THE MAXIMUM PREMIUM RATE FOR A POLICY OF PRIVATE PASSENGER
AUTO INSURANCE ISSUED BY THE FUND IN AN AMOUNT THAT MAY BE INADEQUATE.
(B) SUBJECT TO REVIEW AND APPROVAL BY THE COMMISSIONER, THE
EXECUTIVE DIRECTOR MAY ESTABLISH AN AFFORDABILITY PROGRAM IF:
(1) RATES ARE NOT EXCESSIVE OR UNFAIRLY DISCRIMINATORY; AND
(2) THE AFFORDABILITY PROGRAM DOES NOT RESULT IN:
(I) AN OVERALL INADEQUACY GREATER THAN 20% OF THE
FUND’S NET WRITTEN PREMIUM; OR
(II) AN ASSESSMENT ALLOCATION PERCENTAGE THAT EXCEEDS
THE LIMIT ESTABLISHED IN § 20–405(D) OF THIS TITLE.
(C) AN INDIVIDUAL IS ELIGIBLE FOR A POLICY THROUGH THE
AFFORDABILITY PROGRAM IF THE INDIVIDUAL:
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Ch. 742 2026 LAWS OF MARYLAND
(1) MEETS THE ELIGIBILITY REQUIREMENTS FOR POLICYHOLDERS
UNDER § 20–502 OF THIS SUBTITLE; AND
(2) HAS A HOUSEHOLD INCOME THAT IS NOT MORE THAN 250% OF
THE FEDERAL POVERTY LEVEL.
(D) THE COMMISSIONER MAY REQUIRE THE FUND TO MODIFY THE
AFFORDABILITY PROGRAM IF THE COMMISSIONER DETERMINES THAT:
(1) THE RATES OFFERED THROUGH THE AFFORDABILITY PROGRAM
DO NOT MEET THE REQUIREMENTS OF THIS SECTION;
(2) THE AFFORDABILITY PROGRAM WILL NO LONGER MEET THE
CONDITION ESTABLISHED UNDER SUBSECTION (B)(2)(I) OR (II) OF THIS SECTION;
OR
(3) THE AFFORDABILITY PROGRAM VIOLATES OTHER PROVISIONS OF
THIS ARTICLE TO WHICH THE FUND IS SUBJECT.
(E) THE COMMISSIONER MAY NOT DISAPPROVE OR REQUIRE THE
MODIFICATION OF AN AFFORDABILITY PROGRAM BASED ON THE FUND’S
NONCOMPLIANCE WITH § 20–306 OF THIS TITLE.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October July 1, 2026 2027. It shall remain effective for a period of 2 years and, at the end
of June 30, 2029, this Act, with no further action required by the General Assembly, shall
be abrogated and of no further force and effect.
Approved by the Governor, May 26, 2026.
–4–Every fact on this page links to its source, starting with the official bill record.