SB 110
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 110 (Chair, Finance Committee)(By Request - Departmental -
Maryland Insurance Administration)
Finance Economic Matters
Private Passenger Motor Vehicle Liability Insurance - Notices - Alteration of
Requirements
This departmental bill repeals the requirement that a motor vehicle liability insurer (1) send
any cancellation and nonrenewal notice to an insured in triplicate and (2) send any premium
increase notice to insured in duplicate. Instead, only a single copy of the notices must be
sent.
Fiscal Summary
State Effect: The bill does not directly affect State operations or finances.
Maryland Automobile Insurance Fund (MAIF) Effect: The bill does not affect MAIF
operations or finances; MAIF is not required to send the notices being modified by the bill.
Local Effect: The bill does not directly affect local government operations or finances.
Small Business Effect: The Maryland Insurance Administration (MIA) has determined
that this bill has minimal or no impact on small business (attached). The Department of
Legislative Services concurs with this assessment.
Analysis
Current Law: Generally, when a motor vehicle liability insurer proposes to cancel or fail
to renew a policy, the insurer must notify the insured of its intent, by certified mail, at least
45 days before the proposed cancellation or expiration date of the policy. The notice must
be sent in triplicate and on a form approved by the Commissioner.
Similarly, when a motor vehicle liability insurer proposes to increase the premium for a
policy, the insurer must notify the insured of its intent, by first-class mail tracking method,
at least 45 days before the effective date of proposed increase. The notice must be sent in
duplicate and on a form approved by the Commissioner.
Background: MIA advises that the bill repeals antiquated requirements that were
necessary for MIA’s past complaint and protest processes. Before implementation of
MIA’s online complaint portal, an insured had to mail one or more of the original notices
received to MIA in order to officially protest a policy nonrenewal, policy cancellation, or
premium increase. Current practice allows an insured to protest by mailing the notice (or a
copy of the notice) or by using the online complaint portal; therefore, it is no longer
necessary for an insured to receive multiple copies of these notices from an insurer.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Insurance Administration; Department of Legislative
Services
Fiscal Note History: First Reader - January 7, 2021
rh/jc Third Reader - February 2, 2021
Analysis by: Richard L. Duncan Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 110/ Page 2
 ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: Private Passenger Motor Vehicle Liability Insurance - Notices - Alteration
of Requirements
BILL NUMBER: SB 110
PREPARED BY: 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 economic impact on small business associated with this proposal.
SB 110/ Page 3


Statutes affected:
Text - First - Private Passenger Motor Vehicle Liability Insurance - Notices - Alteration of Requirements: 27-613 Insurance, 27-614 Insurance
Text - Third - Private Passenger Motor Vehicle Liability Insurance - Notices - Alteration of Requirements: 27-613 Insurance, 27-614 Insurance