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H 1220

An Act creating surcharge exceptions in motor vehicle insurance premiums

194th Legislature (2025-2026) Introduced by Patrick Kearney and 4 co-sponsors

H 1220 - An Act creating surcharge exceptions in motor vehicle insurance premiums OverviewBill Number: H 1220 Title: An Act creating surcharge exceptions in motor vehicle insuranc

Accompanied a study order, see H4777
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Bill Summary · H 1220

H 1220 - An Act creating surcharge exceptions in motor vehicle insurance premiums

Overview

Bill Number: H 1220
Title: An Act creating surcharge exceptions in motor vehicle insurance premiums
Status: Hearing scheduled for 05/27/2025 from 10:30 AM-01:00 PM in A-2
Introduced: February 27, 2025

Purpose and Intent

The primary goal of this bill is to establish exceptions to the application of surcharges on motor vehicle insurance premiums. Currently, insurance providers in the state are permitted to apply surcharges to policyholders' premiums under certain circumstances, such as at-fault accidents or moving violations. This bill seeks to limit the use of these surcharges in an effort to make auto insurance more affordable and accessible for drivers.

Key Provisions

  • Prohibits insurance companies from applying surcharges to premiums for the first at-fault accident or moving violation in a 3-year period
  • Requires insurers to provide a 10% discount on premiums for policyholders who complete a state-approved defensive driving course
  • Mandates that any surcharges applied must be proportional to the severity of the incident and not exceed 15% of the base premium
  • Establishes an appeals process for policyholders to challenge the application of surcharges

Affected Parties and Impacts

This bill would primarily impact individual drivers and motor vehicle insurance policyholders in the state. By limiting the use of surcharges and providing discounts for safety courses, the legislation aims to reduce the financial burden of auto insurance, especially for drivers with minor infractions. Insurance companies would be required to adjust their pricing models and underwriting practices to comply with the new regulations.

Procedural and Timeline Considerations

H 1220 was introduced in the state legislature on February 27, 2025 and is currently scheduled for a public hearing on May 27, 2025. If passed, the bill would go into effect on January 1, 2026, giving insurers time to implement the necessary changes. The legislature will need to hold additional committee hearings and votes before the bill can be sent to the governor for final approval.

Compiled from official sources — confirm details with the bill’s official record.

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