SB 97
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 97 (Chair, Finance Committee)(By Request - Departmental -
Maryland Insurance Administration)
Finance Economic Matters
Private Passenger Motor Vehicle Liability Insurance - Protests - Consumer
Complaint Portal
This departmental bill allows a consumer of private passenger motor vehicle liability
insurance to file electronic protests of certain insurer actions with the Maryland Insurance
Administration (MIA) through MIA’s website. The bill also reduces from two to one the
number of copies of a notice of proposed cancellation or nonrenewal of a policy or a
reduction in coverage under a policy that a consumer must send to MIA if a consumer
elects to file a protest by mail.
Fiscal Summary
State Effect: MIA can handle the bill’s requirements using existing budgeted resources.
Revenues are not affected.
Local Effect: The bill does not directly affect local governmental operations or finances.
Small Business Effect: MIA has determined that this bill has minimal or no impact on
small business (attached). The Department of Legislative Services concurs with this
assessment. (The attached assessment does not reflect amendments to the bill.)
Analysis
Bill Summary/Current Law:
Cancellation, Nonrenewal, or Reduction in Coverage
A private passenger motor vehicle liability insurer may cancel or fail to renew a policy or
binder or reduce coverage under a policy with specified exceptions. However, when an
insurer proposes to take one of these actions, the insurer must provide the insured with
specified written notice, in triplicate and on a form approved by the Commissioner, at least
45 days before the proposed effective date of the action.
The insured generally has the right to protest the proposed action and request a hearing
before the Commissioner. To do so, the insured must sign two copies of the notice sent by
the insurer and send them to the Commissioner within 30 days after the mailing date of the
notice. The Commissioner must then notify the insurer, follow specified procedures to
review the protest, and issue an order. These provisions do not apply to the Maryland
Automobile Insurance Fund. Under the bill, this protest may be submitted through MIA’s
consumer complaint portal.
Premium Increases
A private passenger motor vehicle liability insurer may increase the total premium for a
policy under certain circumstances. Doing so may take the form of a surcharge for the
policy, a reclassification of the insured into a different pricing tier, or the removal or
reduction of an existing discount on the policy. Generally, the insurer must notify an
insured of any such increase in the total premium for the policy in a specified manner,
including sending a written notice to the insured at least 45 days before the effective date
of the increase.
If the insured believes that the premium increase is incorrect, the insured may protest the
proposed action within 30 days after the mailing date of the notice. To do so, the insured
must mail or transmit a copy of the notice to the Insurance Commissioner and include other
specified information. Under the bill, this protest may be submitted through MIA’s
consumer complaint portal.
Background: MIA advises that it recently completed development of an Enterprise
Complaint Tracking System (ECTS). ECTS is designed so that consumers may file protests
and complaints electronically, as well as track the status and progress of their protests and
complaints. The bill allows them to do so and simplifies the existing procedure for those
who wish to continue to mail their protests.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
SB 97/ Page 2
Information Source(s): Maryland Insurance Administration; Department of Legislative
Services
Fiscal Note History: First Reader - January 10, 2020
an/jc Third Reader - March 11, 2020
Revised - Amendment(s) - March 11, 2020
Analysis by: Richard L. Duncan Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 97/ Page 3
ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: Insurance – Electronic Automobile Protest Complaints – Technical
Correction
BILL NUMBER: SB 97
PREPARED BY:
(Dept./Agency) Maryland Insurance Administration
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
X WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND
SMALL BUSINESS
OR
WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND
SMALL BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
There is no fiscal impact on small businesses associated with this legislative proposal.
SB 97/ Page 4


Statutes affected:
Text - First - Private Passenger Motor Vehicle Liability Insurance - Protests - Consumer Complaint Portal: 27-613 Insurance
Text - Third - Private Passenger Motor Vehicle Liability Insurance - Protests - Consumer Complaint Portal: 27-613 Insurance, 27-614 Insurance