On May 6, 2025, Governor Wes Moore signed House Bill 1098 (Chapter 395), a new law that introduces capital requirements for the Maryland Automobile Insurance Fund (MAIF) and calls for a study on the affordability of private passenger auto insurance in the state.
Beginning December 31, 2026, MAIF must maintain total adjusted capital at or above its Company Action Level Risk-Based Capital (RBC), as defined in §4–301 of the Insurance Article. If MAIF’s capital falls below this threshold or triggers the trend test from the Property and Casualty RBC Instructions, the Fund must submit an RBC plan for review by the Maryland Insurance Commissioner under §4–305.
The bill also mandates that MAIF comply with prior approval rate-making provisions (Title 11, Subtitle 2 of the Insurance Article) during two specific periods:
Separately, the Maryland Insurance Administration is directed to form a workgroup to study the affordability of private passenger automobile insurance. Areas of focus include:
The workgroup will include members of the state legislature, the Insurance Commissioner, MAIF’s Executive Director, and appointed representatives from insurers, consumer groups, and producers. A report must be submitted to the Governor and General Assembly by January 1, 2026.
Additionally, MAIF’s Board of Trustees may certify an assessment of the greater of up to $20 million or the amount calculated under §20–404(b) and (c) of the Insurance Article for calendar year 2025. This certification must occur on or before March 15, 2026.
The law takes effect July 1, 2025. The provisions related to the affordability workgroup are temporary and will expire on June 30, 2026.
