Committee advances Maryland Automobile Insurance Fund changes, amid debate about possible large assessments

The Economic Matters Committee approved House Bill 1098 as amended, directing the Maryland Automobile Insurance Fund to calculate and report its risk‑based capital, maintain surplus reserves, and giving the Maryland Insurance Administration (MIA) a directive to study private passenger auto insurance affordability.

Amendments added a representative of private passenger automobile insurance producers to the study membership, asked MIA to examine current financial status of private passenger insurers and solicit input from stakeholders including the reinsurance industry, and removed a prior requirement that the fund prepare a formal RBC plan in certain circumstances.

During debate Delegate David Pippe said he was concerned that a provision could require a single, very large assessment applied broadly to insureds statewide to build reserves. Pippe said that could produce a media backlash and that spreading the cost across smaller assessments over multiple years might be preferable. Supporters replied that the bill’s study provisions are intended to diagnose why past assessments occurred and to recommend fixes, and that the amendment provides a buffer to allow study before broader policy changes.

The committee conducted a roll call after discussion and the bill was recorded as passing the committee.

A committee member asked that MIA and stakeholders examine why the fund had expended reserves and led to repeated assessments; proponents said the study is designed to provide that analysis and policy recommendations.