Bill
SB 697
SB 697 revises Maryland's MAIF premium discount methodology, potentially altering affordability and cost allocation for high-risk drivers in the state's insurer-of-last-resort program.
SB 697 modifies how the Maryland Automobile Insurance Fund (MAIF) calculates and applies premium discounts to policyholders. The bill adjusts the methodology for determining eligibility and discount amounts, potentially affecting how rates are structured for drivers in Maryland's insurer-of-last-resort program. This is the state's mechanism for providing coverage to drivers who cannot obtain insurance through regular market channels.
MAIF serves as a critical safety net for high-risk drivers, those with poor driving records, or others denied coverage by standard insurers. Changes to discount methodology directly affect affordability for vulnerable populations and can influence overall program costs passed to other policyholders through surcharges. The Fund covers approximately 2-3% of Maryland drivers, making rate adjustments moderately significant for both individual consumers and the insurance market.
Compiled from official sources — confirm details with the bill’s official record.
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