Panel approves cap and sunset for auto-insurance affordability program

The Judiciary Committee approved House Bill 816 on March 20 after adopting amendments that reduce the private-passenger assessment cap and authorize an affordability program through the Maryland Automobile Insurance Fund (MAIF).

Delegate Taylor, who explained the amendments, said they reduce the assessment cap for private-passenger lines from 3% to 1%, authorize Maryland Auto to establish an affordability program under specified circumstances, and preserve broad regulatory authority for the state insurance commissioner. A senate amendment adding a sunset date of June 2029 was noted and accepted during amendment discussion.

Committee members pressed for budget clarity: one member asked whether the program was operating at a loss and referenced a 2025 assessment of about $14.9 million. Delegate Taylor explained that assessments are used to cover operating losses and that, while assessments are expected in 2026 and 2027, the changes (including the affordability program) were not expected to require ongoing assessments beyond that period. The committee voted "favorable with amendments," with roll-call recorded as 12 yes, 4 no, 0 abstain, 2 absent, 1 excused.

The bill’s amendments aim to limit the assessment that insurers pay to cover MAIF shortfalls while giving regulators tools to create affordability mechanisms for consumers.