Bill
SB 551
Maryland bill bars private auto insurers from raising premiums, adding surcharges, or losing discounts after not-at-fault collisions with free-roaming wild animals.
Status and procedural notes
- Introduced: February 20, 2025 (first reading and committee referral dates vary in the record).
- Sponsor(s): Senators Bailey, Carozza, Feldman, Folden, Hester, Jackson, Kramer, Lewis Young, Ready, Rosapepe, Salling, Watson, West (Maryland sponsors listed in text); other sponsor lists in the provided materials reflect multiple jurisdictions and appear to mix bills with the same number.
- Current status (per materials provided): action postponed indefinitely (June 3, 2025). The bill text sets an effective date of October 1, 2025. The legislative history in the bundle contains inconsistent entries (including entries that appear to be from other states and an enactment sequence); users should verify final status with the official legislative clerk.
Purpose and intent
- To prevent private passenger motor vehicle insurers from penalizing drivers—via higher premiums, surcharges, or loss of discounts—for accidents or losses caused by collisions with free-roaming wild animals when the insured was not at fault.
Key provisions
- Amends Article — Insurance, §27‑501(k) (Maryland) to add a prohibition that, with respect to private passenger motor vehicle insurance, an insurer may not:
- increase a premium, or
- add a surcharge, or
- remove, alter, or refuse to consider a discount,
- based on accidents or losses (1) caused by a collision with a free‑roaming wild animal and (2) for which the insured was not at fault.
- Retains other existing consumer protections in §27‑501(k), such as limits on cancellation or nonrenewal when two or fewer not‑at‑fault claims occurred in the prior three years.
- Effective date indicated in the bill text: October 1, 2025 (if enacted as written).
Who is affected
- Motor vehicle insurers offering private passenger policies in the state: they would be prohibited from using specified wild‑animal collision not‑at‑fault losses as a basis for adverse premium or discount actions.
- Insured drivers: those involved in not‑at‑fault collisions with free‑roaming wild animals would be protected from premium increases, surcharges, or loss of discounts tied specifically to those incidents.
- Maryland Insurance Administration (MIA): charged with oversight and enforcement under existing statutory/regulatory authority.
- Maryland Automobile Insurance Fund (MAIF): not expected to be materially affected (MAIF reports it does not adjust premiums for not‑at‑fault losses).
- Local governments / small businesses: minimal fiscal/operational effects anticipated.
Fiscal impact (from the fiscal note)
- State: Minimal increase in MIA special fund revenues in FY2026 only (from additional rate/form filing fees); enforcement handled within existing resources. Effect on general fund premium tax revenues is uncertain because insurers may adjust premiums in other ways; direction and magnitude cannot be reliably estimated.
- Insurers & policyholders: direct premium impacts are uncertain—insurers are prohibited from using the specified factor, but may adjust overall rates or underwriting classifications in other ways.
- Additional context: Department of Natural Resources estimates 30,000–35,000 deer‑vehicle collisions annually in the state, causing roughly $150 million in damages per year.
Context and relationship to current law
- Current Maryland law already limits insurer cancellation/nonrenewal for a limited number of not‑at‑fault claims and restricts use of certain personal characteristics/events (e.g., organ donor status, marital status) to increase premiums.
- This bill specifically fills a gap by prohibiting insurer actions that penalize insureds for not‑at‑fault collisions with free‑roaming wild animals.
Notes and recommendations
- The provided packet mixes materials from multiple jurisdictions and legislative histories. Confirm the bill’s current procedural status and final disposition with the official legislative website or clerk before relying on the effective date or enactment status.
Compiled from official sources — confirm details with the bill’s official record.
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