Maryland House Bill HB125

Maryland 2022 Regular Session

• Introduced: 1/12/22
• Refer: 1/12/22

Caption

Motor Vehicle Insurance - Discrimination in Underwriting and Rating - Use of Gender

Impact

If enacted, HB 125 would lead to a significant change in how insurance companies operate, specifically removing gender as a factor in the underwriting process. This is expected to enhance consumer protection and increase access to insurance for individuals who may have previously faced higher premiums or policy denials based on their gender. Supporters of the bill view this change as necessary to promote equality in the insurance marketplace, while also potentially lowering costs for female drivers, who often face higher premiums compared to their male counterparts.

Summary

House Bill 125 seeks to amend existing regulations regarding motor vehicle insurance by prohibiting insurers from discriminating against applicants based on their gender. The bill aims to ensure that gender does not play a role in underwriting decisions, cancellation of policies, refusal to renew, or setting of premiums. This legislative move is part of a larger initiative to promote fairness and equality within the insurance industry, particularly in areas that significantly affect individuals’ access to affordable insurance coverage.

Contention

Despite the bill's intentions, there are points of contention surrounding its implementation. Opponents argue that the bill may limit the ability of insurance companies to assess risk accurately and could lead to broader consequences in actuarial practices. There are concerns about whether the removal of gender as a rating factor will affect the overall financial stability of insurance providers, potentially leading to increased premiums for other insured groups. Additionally, the legislation has sparked debates on the intersection of gender and risk assessment, with various stakeholders expressing differing opinions on the best approaches to ensure fair insurance practices.