Maryland Automobile Insurance Fund - Fund Producer Commission Rate, the official text

WES MOORE, Governor  Ch. 796

Chapter 796

                                                  (Senate Bill 637)

AN ACT concerning

 Maryland Automobile Insurance Fund – Fund Producer Minimum Commission
                                                    Rate – Repeal

FOR the purpose of repealing altering the minimum commission rate 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; 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; and generally relating to the Maryland
         Automobile Insurance Fund.

BY repealing and reenacting, with amendments,
         Article – Insurance
         Section 20–512
         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

20–512.

         (a) Except as provided in subsection (b) of this section, the Fund shall pay to a
fund producer of a policyholder to whom a policy is issued a commission:

                  (1) for private passenger auto insurance issued by the Fund, at a rate
determined by the Fund but [not less than 10% 5% and] not to exceed 15% of the total
premium; and

                  (2) for any other insurance issued by the Fund, at a rate determined by the
Fund but not to exceed 10% of the total premium.

         (b) The Fund may not pay a commission:

                  (1) on a fully earned basis;

                  (2) if a prospective insured fails to qualify under § 20–502 of this subtitle;
or

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Ch. 796  2026 LAWS OF MARYLAND

                  (3) if a prospective insured’s initial payment to the Fund, a fund producer,
or premium finance company is not honored; OR

                (4) ON A POLICY WRITTEN DIRECTLY BY THE FUND WITHOUT THE
INVOLVEMENT OF A FUND PRODUCER.

         (c) If a policy issued by the Fund is canceled, the Fund shall refund any unearned
commissions.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2026.

Approved by the Governor, May 26, 2026.

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