The Maryland Insurance Administration (MIA) published a bulletin summarizing all of the insurance laws that were enacted in 2024. The laws are presented in four categories: life and health bills, property and casualty bills, general bills, and financial regulation. This discussion will focus on the property & casualty and general bills. More on the other bills can be found in the bulletin.

Property and Casualty Bills

HB0647 (Ch. 740) – Property and Casualty Insurance – Pet Insurance – Regulation

This bill takes effect on January 1, 2025, and applies to all policies and contracts of pet insurance issued, delivered or renewed in the State on or after this date. The bill creates new regulatory requirements for pet insurance. The bill requires pet insurers to disclose: 

  • All exclusions, including due to preexisting conditions
  • Any provision that limits coverage through a waiting period, coinsurance, deductible, or an annual or lifetime policy limit
  •  Whether the insurer reduces coverage due to the insured's claim history, the age of the pet, or a change in location of the insured

The bill also requires the MIA to create informational material about pet insurance, to be available to vets practicing in the state by June 1, 2025.

HB1227 (Ch. 296) Condominiums – Mandatory Insurance Coverage – Detached Units 

This bill takes effect on October 1, 2024, and changes the insurance requirements regarding detached condo units. Previously, it was required that all unit owners carry homeowners insurance. Under the new law, only residential detached units located within a condominium composed entirely of similar detached units are required to carry homeowners insurance. 

A council of unit owners can carry insurance coverage on the entirety of all detached units to satisfy the requirements. If the council does not cover the entirety of all units, the owner of the detached unit must carry homeowners coverage on the unit. 

HB1482 (Ch. 857) – Uninsured Driving Penalties – Funding for the Maryland Automobile Insurance Fund (MAIF), Driver Education, and Transportation to Field Trips

This bill takes effect on July 1, 2024, and increases the penalties assessed to an uninsured motorist. Insurers must refile forms if the changes contradict their forms. More on this bill can be found: Maryland Form Filing Requirements After Passage of HB 1482.

The revenue derived from these penalties goes toward funding for MAIF, driver education programs for public high schools, and a field trip grant program for public schools.

General Bills

HB0036 (Ch. 826) – Insurance – Protections After Loss or Damage to Property 

This bill takes effect October 1, 2024, and includes a few provisions. The bill restricts public adjusters from soliciting clients between 8:00 pm and 8:00 am, extends an insured's right to rescind or cancel a public adjuster contract from 3 to 10 days, and requires a public adjuster to give notice to the Commissioner within 1 business day after entering into a contract where there was an insurance claim.

HB0067 / SB0229 (Chs. 119 and 120) – Insurance – Penalties – Unauthorized Insurers, Insurance Producers, and Public Adjusters

This bill takes effect October 1, 2024, and raises the maximum civil penalty for engaging in insurance business without a license from $50,000 to $125,000 per violation, and raises the maximum penalty that can be imposed on insurance producers and public adjusters from $500 to $5,000 per violation. 

HB0090 / SB0230 (Chs. 827 and 828) – Insurance – Hearing Representation 

This bill takes effect October 1, 2024, and allows for a business entity that classifies as a small employer to designate someone to represent them in administrative proceedings before the MIA, thereby eliminating the need for small businesses to acquire counsel to represent them. 

HB0229 / SB0254 (Chs. 73 and 74) – Vehicle Laws – Motor Vehicle Insurance Companies – Requirements

This bill takes effect on January 1, 2025, and requires that all motor vehicle insurers participate in the Motor Vehicle Administration's (MVA) new online verification system, and requires that all policies be submitted electronically. 

HB0265 / SB0336 (Chs. 874 and 873) – Insurance – Producer Licensing Requirements – Education and Experience 

This bill takes effect October 1, 2024, and repeals the requirement for producer applicants to take a prelicensing course and the one-year work experience requirement. The other requirements remain the same, namely that the applicant be trustworthy, at least 18 years old, pass a written exam for the license being requested, and pay the initial license fee. 

HB0567 / SB0541 (Chs. 454 and 455) – Maryland Online Data Privacy Act of 2024

This bill takes effect October 1, 2025, and establishes the Online Data Privacy Act. The Act provides comprehensive regulation and protection of the online commercial usage of personal data. Violation of the act constitutes an unfair or deceptive trade practice. 

 

The bulletin can be found here.