Maryland insurance fund may cap premiums for eligible drivers

The Fund’s purpose is to provide required auto insurance at affordable rates. This applies to required auto insurance provided by the Maryland Automobile Insurance Fund. This insurance is for people who qualify for the Fund and cannot obtain required coverage from an Association member. The law is scheduled to expire June 30, 2029.

The Association’s Board must keep the private passenger auto assessment allocation percentage at or below 1%. The percentage is used to allocate assessments to the Association’s private passenger auto division. The law is scheduled to expire June 30, 2029.

With the Commissioner’s approval, the Fund’s Executive Director may establish a program that caps premiums for private passenger auto policies. The program may cap premiums for private passenger auto policies issued by the Fund. Rates must not be excessive or unfairly discriminatory. The program must not cause an overall premium shortfall above 20% of the Fund’s net written premium or push the assessment allocation percentage above its legal limit. A person must meet the Fund’s policyholder eligibility rules and have household income at or below 250% of the federal poverty level. The Commissioner may require changes if the program fails these requirements or violates other insurance law. The law is scheduled to expire June 30, 2029.