Maryland 2022 Regular Session

Maryland House Bill HB266 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		hb0266
9	6
10	7		HOUSE BILL 266
11	8		C4 2lr1494
12		-	CF ~~SB 301~~
	9	+	CF 2lr0724
13	10		By: Delegate Crosby
14	11		Introduced and read first time: January 13, 2022
15	12		Assigned to: Economic Matters
16		-	Committee Report: Favorable
17		-	House action: Adopted
18		-	Read second time: March 3, 2022
19	13
20		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
21	15
22	16		AN ACT concerning 1
23	17
24	18		Private Passenger Motor Vehicle Liability Insurance – Enhanced Underinsured 2
25	19		Motorist Coverage – Opt–Out Option 3
26	20
27	21		FOR the purpose of converting enhanced underinsured motorist coverage from an opt–in 4
28	22		offering of coverage into an opt–out coverage option under certain provisions of law 5
29	23		establishing requirements for private passenger motor vehicle liability insurance; 6
30	24		and generally relating to private passenger motor vehicle liability insurance. 7
31	25
32	26		BY repealing and reenacting, without amendments, 8
33	27		Article – Insurance 9
34	28		Section 19–509(a) and (c), 19–510(b), 19–511(b), and 19–511.1(b) 10
35	29		Annotated Code of Maryland 11
36	30		(2017 Replacement Volume and 2021 Supplement) 12
37	31
38	32		BY repealing and reenacting, with amendments, 13
39	33		Article – Insurance 14
40	34		Section 19–509(b), 19–509.1, 19–510(a), 19–511(a), and 19–511.1(a) 15
41	35		Annotated Code of Maryland 16
42	36		(2017 Replacement Volume and 2021 Supplement) 17
43	37
44	38		SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
45	39		That the Laws of Maryland read as follows: 19
46	40
47	41		Article – Insurance 20
48		-	2 HOUSE BILL 266
	42	+
	43	+	19–509. 21
	44	+
	45	+	(a) In this section, “uninsured motor vehicle” means a motor vehicle: 22
	46	+
	47	+	(1) the ownership, maintenance, or use of which has resulted in the bodily 23
	48	+	injury or death of an insured; and 24 2 HOUSE BILL 266
49	49
50	50
51		-	19–509. 1
52	51
53		-	(a) In this section, “uninsured motor vehicle” means a motor vehicle: 2
	52	+	(2) for which the sum of the limits of liability under all valid and collectible 1
	53	+	liability insurance policies, bonds, and securities applicable to bodily injury or death: 2
54	54
55		-	(1) the ~~ownership, maintenance, or use~~ of ~~which has resulted in the bodily~~ 3
56		-	~~injury~~ or ~~death of an insured; and~~ 4
	55	+	(i) is less than the amount of coverage provided under this section; 3
	56	+	or 4
57	57
58		-	(2) for which the sum of the limits of liability under all valid and collectible 5
59		-	liability insurance policies, bonds, and securities applicable to bodily injury or death: 6
	58	+	(ii) has been reduced by payment to other persons of claims arising 5
	59	+	from the same occurrence to an amount less than the amount of coverage provided under 6
	60	+	this section. 7
60	61
61		-	(i) ~~is less than~~ the ~~amount of~~ coverage ~~provided under~~ this section~~; 7~~
62		-	~~or 8~~
	62	+	(b) The uninsured motorist coverage required by this section does not apply to a 8
	63	+	motor vehicle liability insurance policy: 9
63	64
64		-	(ii) has been reduced by payment to other persons of claims arising 9
65		-	from the same occurrence to an amount less than the amount of coverage provided under 10
66		-	this section. 11
	65	+	(1) that insures a motor vehicle that: 10
67	66
68		-	(b) The ~~uninsured motorist coverage required by this section does not apply to a 12~~
69		-	~~motor vehicle liability insurance policy:~~ 13
	67	+	(i) is not subject to registration under § 13 –402 of the 11
	68	+	Transportation Article because it is not driven on a highway; or 12
70	69
71		-	(1) that insures a motor vehicle that: 14
	70	+	(ii) is exempt from registration under § 13–402(c)(10) of the 13
	71	+	Transportation Article; or 14
72	72
73		-	(i) is not subject to registration under § 13 –402 of the 15
74		-	Transportation Article because it is not driven on a highway; or 16
	73	+	(2) if the first named insured under a policy or binder of private passenger 15
	74	+	motor vehicle liability insurance has [elected to obtain] NOT WAIVED AND THERE FORE 16
	75	+	MAINTAINS enhanced underinsured motorist coverage under § 19–509.1 of this subtitle 17
	76	+	[instead of the uninsured motorist coverage required under this section]. 18
75	77
76		-	(ii) is exempt from registration under § 13–402(c)(10) of the 17
77		-	Transportation Article; or 18
	78	+	(c) In addition to any other coverage required by this subtitle, each motor vehicle 19
	79	+	liability insurance policy issued, sold, or delivered in the State after July 1, 1975, shall 20
	80	+	contain coverage for damages, subject to the policy limits, that: 21
78	81
79		-	(2) if the first named insured under a policy or binder of private passenger 19
80		-	motor vehicle liability insurance has [elected to obtain] NOT WAIVED AND THERE FORE 20
81		-	MAINTAINS enhanced underinsured motorist coverage under § 19–509.1 of this subtitle 21
82		-	[instead of the uninsured motorist coverage required under this section]. 22
	82	+	(1) the insured is entitled to recover from the owner or operator of an 22
	83	+	uninsured motor vehicle because of bodily injuries sustained in a motor vehicle accident 23
	84	+	arising out of the ownership, maintenance, or use of the uninsured motor vehicle; 24
83	85
84		-	(c) ~~In addition~~ to ~~any other coverage required by this subtitle,~~ ~~each motor vehicle 23~~
85		-	~~liability insurance policy issued~~, ~~sold, or delivered in~~ the ~~State after July 1, 1975, shall 24~~
86		-	~~contain coverage for damages, subject to the policy limits, that: 25~~
	86	+	(2) the insured is entitled to recover from the owner or operator of an 25
	87	+	uninsured motor vehicle because of property damage, including loss of use of the insured 26
	88	+	vehicle; and 27
87	89
88		-	(1) the insured is entitled to recover from the owner or operator of an 26
89		-	uninsured motor vehicle because of bodily injuries sustained in a motor vehicle accident 27
90		-	arising out of the ownership, maintenance, or use of the uninsured motor vehicle; 28
	90	+	(3) a surviving relative of the insured, who is described in § 3–904 of the 28
	91	+	Courts Article, is entitled to recover from the owner or operator of an uninsured motor 29
	92	+	vehicle because the insured died as the result of a motor vehicle accident arising out of the 30
	93	+	ownership, maintenance, or use of the uninsured motor vehicle. 31
91	94
92		-	(2) the insured is entitled to recover from the owner or operator of an 29
93		-	uninsured motor vehicle because of property damage, including loss of use of the insured 30
94		-	vehicle; and 31
95		-
96		-	(3) a surviving relative of the insured, who is described in § 3–904 of the 32
97		-	Courts Article, is entitled to recover from the owner or operator of an uninsured motor 33 HOUSE BILL 266 3
	95	+	19–509.1. 32
	96	+	HOUSE BILL 266 3
98	97
99	98
100		-	vehicle because the insured died as the result of a motor vehicle accident arising out of the 1
101		-	ownership, maintenance, or use of the uninsured motor vehicle. 2
	99	+	(a) In this section, “underinsured motor vehicle” means a motor vehicle that has 1
	100	+	liability coverage in an amount less than, more than, or equal to the uninsured motorist 2
	101	+	coverage provided under the insured party’s motor vehicle liability insurance policy. 3
102	102
103		-	19–509.1. 3
	103	+	(b) The enhanced underinsured motorist coverage required by this section does 4
	104	+	not apply to a motor vehicle liability insurance policy: 5
104	105
105		-	(a) In this section, “underinsured motor vehicle” means a motor vehicle that has 4
106		-	liability coverage in an amount less than, more than, or equal to the uninsured motorist 5
107		-	coverage provided under the insured party’s motor vehicle liability insurance policy. 6
	106	+	(1) that insures a motor vehicle that: 6
108	107
109		-	(b) The ~~enhanced underinsured motorist coverage required by this section does~~ 7
110		-	not ~~apply to~~ a ~~motor vehicle liability insurance policy:~~ 8
	108	+	(i) is not subject to registration under § 13–402 of the 7
	109	+	Transportation Article because it is not driven on a highway; or 8
111	110
112		-	(1) that insures a motor vehicle that: 9
	111	+	(ii) is exempt from registration under § 13–402(c)(10) of the 9
	112	+	Transportation Article; or 10
113	113
114		-	(i) is not subject to registration under § 13 –402 of the 10
115		-	Transportation Article because it is not driven on a highway; or 11
	114	+	(2) [when] IF a first named insured under a policy or binder of private 11
	115	+	passenger motor vehicle liability insurance has [not elected to obtain] WAIVED enhanced 12
	116	+	underinsured motorist coverage under this section [instead of the uninsured motorist 13
	117	+	coverage required under § 19–509 of this subtitle]. 14
116	118
117		-	(ii) is exempt from registration under § 13–402(c)(10) of the 12
118		-	Transportation Article; or 13
	119	+	(c) (1) [An] UNLESS WAIVED IN ACCO RDANCE WITH THIS SUB SECTION, 15
	120	+	AN insurer shall [offer] PROVIDE enhanced underinsured motorist coverage [at the time 16
	121	+	of purchase of a private passenger motor vehicle liability insurance policy]. 17
119	122
120		-	(2) ~~[when] IF a~~ first named insured under a policy or binder of private 14
121		-	passenger motor vehicle liability insurance ~~has [not elected~~ to obtain] ~~WAIVED~~ enhanced 15
122		-	underinsured motorist coverage ~~under this section~~ [~~instead~~ of the uninsured motorist 16
123		-	coverage required under § 19–509 of this subtitle]. 17
	123	+	(2) (I) The first named insured under a policy or binder of private 18
	124	+	passenger motor vehicle liability insurance may elect to [obtain] WAIVE enhanced 19
	125	+	underinsured motorist coverage AND instead [of the] MAINTAIN uninsured motorist 20
	126	+	coverage required under § 19–509 of this subtitle. 21
124	127
125		-	(c) (1) [An] UNLESS WAIVED IN ACCO RDANCE WITH THIS SUB SECTION, 18
126		-	AN insurer shall [offer] PROVIDE enhanced underinsured motorist coverage [at the time 19
127		-	of purchase of a private passenger motor vehicle liability insurance policy]. 20
	128	+	(II) IF THE FIRST NAMED INSURE D DOES NOT WISH TO O BTAIN 22
	129	+	THE ENHANCED UNDERIN SURED MOTORIST COVER AGE UNDER THIS SECTI ON, THE 23
	130	+	FIRST NAMED INSURED SHALL MAKE AN AFFIRM ATIVE WRITTEN STATEM ENT 24
	131	+	WAIVING THE COVERAGE . 25
128	132
129		-	(2) ~~(I) The first named insured~~ under ~~a policy or binder of private 21~~
130		-	~~passenger motor vehicle liability insurance may elect to [obtain] WAIVE enhanced 22~~
131		-	~~underinsured motorist coverage~~ AND ~~instead [~~of the~~] MAINTAIN uninsured motorist 23~~
132		-	~~coverage required under § 19–509~~ of ~~this subtitle~~. 24
	133	+	(III) A WAIVER MADE UNDER TH IS SUBSECTION IS NOT 26
	134	+	EFFECTIVE UNLESS , BEFORE THE WAIVER , THE INSURER GIVES TH E FIRST NAMED 27
	135	+	INSURED WRITTEN NOTI CE OF THE NATURE , EXTENT, BENEFIT, AND COST OF THE 28
	136	+	LEVEL OF THE UNDERIN SURED MOTORIST COVER AGE BEING WAIVED . 29
133	137
134		-	(II) IF THE FIRST NAMED IN SURED DOES NOT WISH TO OBTAIN 25
135		-	THE ENHANCED UNDERIN SURED MOTORIST COVER AGE UNDER THIS SECTI ON, THE 26
136		-	FIRST NAMED INSURED SHALL MAKE AN AFFIRM ATIVE WRITTEN STATEME NT 27
137		-	WAIVING THE COVERAGE . 28
	138	+	(IV) 1. A WAIVER MADE UNDER TH IS SUBSECTION SHALL BE 30
	139	+	MADE ON THE FORM THAT THE COMMISSIONER REQUIRES . 31
138	140
139		-	(III) A WAIVER MADE UNDER TH IS SUBSECTION IS NOT 29
140		-	EFFECTIVE UNLESS , BEFORE THE WAIVER , THE INSURER GIVES TH E FIRST NAMED 30
141		-	INSURED WRITTEN NOTI CE OF THE NATURE , EXTENT, BENEFIT, AND COST OF THE 31
142		-	LEVEL OF THE UND ERINSURED MOTORIST C OVERAGE BEING WAIVED . 32
	141	+	2. THE FORM MAY BE PART OF THE INSURANCE 32
	142	+	CONTRACT. 33
143	143		4 HOUSE BILL 266
144	144
145	145
146		-	~~(IV) 1~~. ~~A WAIVER MADE UNDER TH IS SUBSECTION~~ SHALL BE 1
147		-	~~MADE ON THE FORM THA T THE COMMISSIONER REQUIRES .~~ 2
	146	+	3. THE FORM SHALL CLEARL Y AND CONCISELY EXPL AIN 1
	147	+	IN AT LEAST 10 POINT BOLDFACE TYPE : 2
148	148
149		-	2. THE FORM MAY BE PART OF THE INSURANCE 3
150		-	CONTRACT. 4
	149	+	A. THE NATURE , EXTENT, BENEFIT, AND COST OF THE 3
	150	+	LEVEL OF TH E UNDERINSURED MOTOR IST COVERAGE THAT WO ULD BE PROVIDED 4
	151	+	UNDER THE POLICY IF NOT WAIVED BY THE FI RST NAMED INSURED ; 5
151	152
152		-	3. THE FORM SHALL CLEARL Y AND CONCISELY EXPL AIN 5
153		-	IN AT LEAST 10 POINT BOLDFACE TYPE : 6
	153	+	B. THAT A FAILURE OF TH E FIRST NAMED INSURE D TO 6
	154	+	MAKE A WAIVER REQUIR ES THE INSURER TO PR OVIDE UNDERINSURED M OTORIST 7
	155	+	COVERAGE; 8
154	156
155		-	A. THE ~~NATURE , EXTENT,~~ ~~BENEFIT, AND COST OF THE 7~~
156		-	~~LEVEL OF~~ THE ~~UNDERIN SURED MOTORIST COVER AGE THAT WOULD BE PR OVIDED 8~~
157		-	UNDER ~~THE POLICY IF NOT WAIVED BY THE FI RST NAMED INSURED~~ ; 9
	157	+	C. THAT THE INSURER MAY N OT REFUSE TO 9
	158	+	UNDERWRITE A PERSON BECAUSE THE PERSON R EFUSES TO WAIVE THE 10
	159	+	UNDERINSURED MOTORIS T COVERAGE UNDER THI S SUBSECTION; AND 11
158	160
159		-	B. THAT A FAILURE OF TH E FIRST NAME D INSURED TO 10
160		-	MAKE A WAIVER REQUIR ES THE INSURER TO PR OVIDE UNDERINSURED M OTORIST 11
161		-	COVERAGE; 12
	161	+	D. THAT A WAIVER MADE U NDER THIS SUBSECTION MUST 12
	162	+	BE AN AFFIRMATIVE WR ITTEN WAIVER. 13
162	163
163		-	C. THAT THE INSURER MAY NOT REFUSE TO 13
164		-	UNDERWRITE A PERSON BECAUSE THE PERSON R EFUSES TO WAIVE THE 14
165		-	UNDERINSURED MOTORIS T COVERAGE UNDER THI S SUBSECTION; AND 15
	164	+	(V) IF THE FIRST NAMED INSURED DOES NOT MAKE AN 14
	165	+	AFFIRMATIVE WRITTEN STATEMENT WAIVING TH E ENHANCED UNDERINSU RED 15
	166	+	MOTORIST COVERAGE , THE INSURER SHALL PR OVIDE THE COVERAGE U NDER THIS 16
	167	+	SECTION. 17
166	168
167		-	D. THAT A WAIVER MADE U NDER THIS SUBSECTION MUST 16
168		-	BE AN AFFIRMATIVE WR ITTEN WAIVER. 17
	169	+	(3) Unless the first named insured affirmatively makes a change in 18
	170	+	writing, the election to [obtain] WAIVE enhanced underinsured motorist coverage applies 19
	171	+	to all subsequent renewals of coverage and to all other policies or endorsements that extend, 20
	172	+	change, supersede, or replace an existing private passenger motor vehicle insurance policy 21
	173	+	issued to the first named insured. 22
169	174
170		-	(V) IF THE FIRST NAMED IN SURED DOES NOT MAKE AN 18
171		-	AFFIRMATIVE WRITTEN STATEMENT WAIVING TH E ENHANCED UNDERINSU RED 19
172		-	MOTORIST COVERAGE , THE INSURER SHALL PR OVIDE THE COVERAG E UNDER THIS 20
173		-	SECTION. 21
	175	+	(d) In addition to any other coverage required by this subtitle, each private 23
	176	+	passenger motor vehicle liability insurance policy issued, sold, or delivered in the State on 24
	177	+	or after July 1, [2018] 2023, to an insured that [elects to obtain] MAINTAINS enhanced 25
	178	+	underinsured motorist coverage instead of the uninsured motorist coverage required under 26
	179	+	§ 19–509 of this subtitle, shall contain coverage for damages, subject to the policy limits, 27
	180	+	that: 28
174	181
175		-	(3) Unless the first named insured affirmatively makes a change in 22
176		-	writing, the election to [obtain] WAIVE enhanced underinsured motorist coverage applies 23
177		-	to all subsequent renewals of coverage and to all other policies or endorsements that extend, 24
178		-	change, supersede, or replace an existing private passenger motor vehicle insurance policy 25
179		-	issued to the first named insured. 26
	182	+	(1) the insured is entitled to recover from the owner or operator of an 29
	183	+	underinsured motor vehicle because of bodily injuries sustained in a motor vehicle accident 30
	184	+	arising out of the ownership, maintenance, or use of the underinsured motor vehicle; 31
180	185
181		-	(d) In addition to any other coverage required by this subtitle, each private 27
182		-	passenger motor vehicle liability insurance policy issued, sold, or delivered in the State on 28
183		-	or after July 1, [2018] 2023, to an insured that [elects to obtain] MAINTAINS enhanced 29
184		-	underinsured motorist coverage instead of the uninsured motorist coverage required under 30
185		-	§ 19–509 of this subtitle, shall contain coverage for damages, subject to the policy limits, 31
186		-	that: 32
	186	+	(2) the insured is entitled to recover from the owner or operator of an 32
	187	+	underinsured motor vehicle because of property damage, including loss of use of the insured 33
	188	+	vehicle; and 34
187	189		HOUSE BILL 266 5
188	190
189	191
190		-	(1) the insured is entitled to recover from the owner or operator of an 1
191		-	underinsured motor vehicle because of bodily injuries sustained in a motor vehicle accident 2
192		-	arising out of the ownership, maintenance, or use of the underinsured motor vehicle; 3
	192	+	(3) a surviving relative of the insured, who is described in § 3–904 of the 1
	193	+	Courts Article, is entitled to recover from the owner or operator of an underinsured motor 2
	194	+	vehicle because the insured died as the result of a motor vehicle accident arising out of the 3
	195	+	ownership, maintenance, or use of the underinsured motor vehicle. 4
193	196
194		-	(2) the insured is entitled to recover from the owner or operator of an 4
195		-	underinsured motor vehicle because of property damage, including loss of use of the insured 5
196		-	vehicle; and 6
	197	+	(e) The [offer of] enhanced underinsured motorist coverage required by this 5
	198	+	section shall be on the form that the Commissioner requires. 6
197	199
198		-	(3) a surviving relative of the insured, who is described in § 3–904 of the 7
199		-	Courts Article, is entitled to recover from the owner or operator of an underinsured motor 8
200		-	vehicle because the insured died as the result of a motor vehicle accident arising out of the 9
201		-	ownership, maintenance, or use of the underinsured motor vehicle. 10
	200	+	(f) (1) The enhanced underinsured motorist coverage contained in a private 7
	201	+	passenger motor vehicle liability insurance policy: 8
202	202
203		-	(e) The [offer of] enhanced underinsured motorist coverage required by this 11
204		-	section shall be on the form that the Commissioner requires. 12
	203	+	(i) shall at least equal: 9
205	204
206		-	(f) (1) The enhanced underinsured motorist coverage contained in a private 13
207		-	passenger motor vehicle liability insurance policy: 14
	205	+	1. the amounts required by Title 17 of the Transportation 10
	206	+	Article for bodily injury and property damage, including loss of use of the insured vehicle; 11
	207	+	and 12
208	208
209		-	(i) shall at least equal: 15
	209	+	2. the coverage provided to a qualified person under Title 20, 13
	210	+	Subtitle 6 of this article; and 14
210	211
211		-	1. the amounts required by Title 17 of the Transportation 16
212		-	Article for bodily injury and property damage, including loss of use of the insured vehicle; 17
213		-	and 18
	212	+	(ii) may not exceed the amount of liability coverage provided under 15
	213	+	the policy. 16
214	214
215		-	2. the coverage provided to a qualified person under Title 20, 19
216		-	Subtitle 6 of this article; and 20
	215	+	(2) The amount of enhanced underinsured motorist coverage provided 17
	216	+	under a private passenger motor vehicle liability insurance policy shall equal the amount 18
	217	+	of liability coverage provided under the policy. 19
217	218
218		-	(ii) may ~~not exceed~~ the ~~amount of liability~~ coverage ~~provided under 21~~
219		-	~~the policy.~~ 22
	219	+	(g) An insurer may exclude from the enhanced underinsured motorist coverage 20
	220	+	required by this section benefits for: 21
220	221
221		-	(2) The amount of enhanced underinsured motorist coverage provided 23
222		-	under a private passenger motor vehicle liability insurance policy shall equal the amount 24
223		-	of liability coverage provided under the policy. 25
	222	+	(1) the named insured or a family member of the named insured who 22
	223	+	resides in the named insured’s household for an injury that occurs when the named insured 23
	224	+	or family member is occupying or is struck as a pedestrian by an underinsured motor 24
	225	+	vehicle that is owned by the named insured or an immediate family member of the named 25
	226	+	insured who resides in the named insured’s household; and 26
224	227
225		-	(g) An insurer may exclude from the enhanced underinsured motorist coverage 26
226		-	required by this section benefits for: 27
	228	+	(2) the named insured, a family member of the named insured who resides 27
	229	+	in the named insured’s household, and any other individual who has other applicable motor 28
	230	+	vehicle insurance for an injury that occurs when the named insured, family member, or 29
	231	+	other individual is occupying or is struck as a pedestrian by the insured motor vehicle while 30
	232	+	the motor vehicle is operated or used by an individual who is excluded from coverage under 31
	233	+	§ 27–609 of this article. 32
227	234
228		-	(1) the named insured or a family member of the named insured who 28
229		-	resides in the named insured’s household for an injury that occurs when the named insured 29
230		-	or family member is occupying or is struck as a pedestrian by an underinsured motor 30
231		-	vehicle that is owned by the named insured or an immediate family member of the named 31
232		-	insured who resides in the named insured’s household; and 32
	235	+	(h) The limit of liability for an insurer that provides enhanced underinsured 33
	236	+	motorist coverage under this section: 34
233	237
234		-	(2) the named insured, a family member of the named insured who resides 33
235		-	in the named insured’s household, and any other individual who has other applicable motor 34
236		-	vehicle insurance for an injury that occurs when the named insured, family member, or 35 6 HOUSE BILL 266
	238	+	(1) is subject to § 19–511.1 of this subtitle; and 35 6 HOUSE BILL 266
237	239
238	240
239		-	other individual is occupying or is struck as a pedestrian by the insured motor vehicle while 1
240		-	the motor vehicle is operated or used by an individual who is excluded from coverage under 2
241		-	§ 27–609 of this article. 3
242	241
243		-	(h) The limit of liability for an insurer that provides enhanced underinsured 4
244		-	motorist coverage under this section: 5
	242	+	(2) is the amount of that coverage without any reduction for the amount 1
	243	+	paid to the insured, that exhausts any applicable liability insurance policies, bonds, and 2
	244	+	securities, on behalf of any person that may be held liable for the bodily injuries or death 3
	245	+	of the insured. 4
245	246
246		-	(1) is subject to § 19–511.1 of this subtitle; and 6
	247	+	(i) (1) A policy that, as its primary purpose, provides coverage in excess of 5
	248	+	other valid and collectible insurance or qualified self–insurance may include the enhanced 6
	249	+	underinsured motorist coverage provided for in this section. 7
247	250
248		-	(2) is the amount of that coverage without any reduction for the amount 7
249		-	paid to the insured, that exhausts any applicable liability insurance policies, bonds, and 8
250		-	securities, on behalf of any person that may be held liable for the bodily injuries or death 9
251		-	of the insured. 10
	251	+	(2) The enhanced underinsured motorist coverage required by this section 8
	252	+	is primary to any right to recovery from the Maryland Automobile Insurance Fund under 9
	253	+	Title 20, Subtitle 6 of this article. 10
252	254
253		-	(i) (1) A policy that, as its primary purpose, provides coverage in excess of 11
254		-	other valid and collectible insurance or qualified self–insurance may include the enhanced 12
255		-	underinsured motorist coverage provided for in this section. 13
	255	+	(j) An endorsement or a provision that protects the insured against damages 11
	256	+	caused by an underinsured motor vehicle that is contained in a policy issued and delivered 12
	257	+	in the State is deemed to cover damages caused by a motor vehicle insured by a liability 13
	258	+	insurer that is insolvent or otherwise unable to pay claims to the same extent and in the 14
	259	+	same manner as if the damages were caused by an underinsured motor vehicle. 15
256	260
257		-	(2) The enhanced underinsured motorist coverage required by this section 14
258		-	is primary to any right to recovery from the Maryland Automobile Insurance Fund under 15
259		-	Title 20, Subtitle 6 of this article. 16
	261	+	(k) A provision in a private passenger motor vehicle liability insurance policy 16
	262	+	issued on or after July 1, 2018, about coverage for damages sustained by the insured as a 17
	263	+	result of the operation of an underinsured motor vehicle that requires a dispute between 18
	264	+	the insured and the insurer to be submitted to binding arbitration is prohibited and is of 19
	265	+	no legal effect. 20
260	266
261		-	(j) An endorsement or a provision that protects the insured against damages 17
262		-	caused by an underinsured motor vehicle that is contained in a policy issued and delivered 18
263		-	in the State is deemed to cover damages caused by a motor vehicle insured by a liability 19
264		-	insurer that is insolvent or otherwise unable to pay claims to the same extent and in the 20
265		-	same manner as if the damages were caused by an underinsured motor vehicle. 21
	267	+	19–510. 21
266	268
267		-	(k) A provision in a private passenger motor vehicle liability insurance policy 22
268		-	issued on or after July 1, 2018, about coverage for damages sustained by the insured as a 23
269		-	result of the operation of an underinsured motor vehicle that requires a dispute between 24
270		-	the insured and the insurer to be submitted to binding arbitration is prohibited and is of 25
271		-	no legal effect. 26
	269	+	(a) This section applies only when: 22
272	270
273		-	19–510. 27
	271	+	(1) the liability coverage under a policy or binder of private passenger 23
	272	+	motor vehicle liability insurance exceeds the amount required under § 17–103 of the 24
	273	+	Transportation Article; and 25
274	274
275		-	(a) This section applies only when: 28
	275	+	(2) the first named insured under a policy or binder of private passenger 26
	276	+	motor vehicle liability insurance has [not elected to obtain] WAIVED enhanced 27
	277	+	underinsured motorist coverage under § 19–509.1 of this subtitle AND instead [of the] 28
	278	+	MAINTAINS uninsured motorist coverage required under § 19–509 of this subtitle. 29
276	279
277		-	(1) the liability coverage under a policy or binder of private passenger 29
278		-	motor vehicle liability insurance exceeds the amount required under § 17–103 of the 30
279		-	Transportation Article; and 31
280		-
281		-	(2) the first named insured under a policy or binder of private passenger 32
282		-	motor vehicle liability insurance has [not elected to obtain] WAIVED enhanced 33
283		-	underinsured motorist coverage under § 19–509.1 of this subtitle AND instead [of the] 34
284		-	MAINTAINS uninsured motorist coverage required under § 19–509 of this subtitle. 35
	280	+	(b) (1) If the first named insured under a policy or binder of private passenger 30
	281	+	motor vehicle liability insurance does not wish to obtain uninsured motorist coverage in the 31
	282	+	same amount as the liability coverage provided under the policy or binder, the first named 32
	283	+	insured shall make an affirmative written waiver of having uninsured motorist coverage in 33
	284	+	the same amount as the liability coverage. 34
285	285		HOUSE BILL 266 7
286	286
287	287
288		-	(b) (1) If the first named insured under a policy or binder of private passenger 1
289		-	motor vehicle liability insurance does not wish to obtain uninsured motorist coverage in the 2
290		-	same amount as the liability coverage provided under the policy or binder, the first named 3
291		-	insured shall make an affirmative written waiver of having uninsured motorist coverage in 4
292		-	the same amount as the liability coverage. 5
	288	+	(2) If the first named insured does not make an affirmative written waiver 1
	289	+	under this section, the insurer shall provide uninsured motorist coverage in an amount 2
	290	+	equal to the amount of the liability coverage provided under the policy or binder. 3
293	291
294		-	(2) If the first named insured does not make an affirmative written waiver 6
295		-	under this section, the insurer shall provide uninsured motorist coverage in an amount 7
296		-	equal to the amount of the liability coverage provided under the policy or binder. 8
	292	+	19–511. 4
297	293
298		-	19–511. 9
	294	+	(a) This section [does not apply] APPLIES ONLY when the first named insured 5
	295	+	under a policy or binder of private passenger motor vehicle liability insurance has [elected 6
	296	+	to obtain] WAIVED enhanced underinsured motorist coverage under § 19–509.1 of this 7
	297	+	subtitle AND instead [of the] MAINTAINS uninsured motorist coverage required under § 8
	298	+	19–509 of this subtitle. 9
299	299
300		-	(a) This section [does not apply] APPLIES ONLY when the first named insured 10
301		-	under a policy or binder of private passenger motor vehicle liability insurance has [elected 11
302		-	to obtain] WAIVED enhanced underinsured motorist coverage under § 19–509.1 of this 12
303		-	subtitle AND instead [of the] MAINTAINS uninsured motorist coverage required under § 13
304		-	19–509 of this subtitle. 14
	300	+	(b) If an injured person receives a written offer from a motor vehicle insurance 10
	301	+	liability insurer or that insurer’s authorized agent to settle a claim for bodily injury or 11
	302	+	death, and the amount of the settlement offer, in combination with any other settlements 12
	303	+	arising out of the same occurrence, would exhaust the bodily injury or death limits of the 13
	304	+	applicable liability insurance policies, bonds, and securities, the injured person shall send 14
	305	+	by certified mail, to any insurer that provides uninsured motorist coverage for the bodily 15
	306	+	injury or death, a copy of the liability insurer’s written settlement offer. 16
305	307
306		-	(b) If an injured person receives a written offer from a motor vehicle insurance 15
307		-	liability insurer or that insurer’s authorized agent to settle a claim for bodily injury or 16
308		-	death, and the amount of the settlement offer, in combination with any other settlements 17
309		-	arising out of the same occurrence, would exhaust the bodily injury or death limits of the 18
310		-	applicable liability insurance policies, bonds, and securities, the injured person shall send 19
311		-	by certified mail, to any insurer that provides uninsured motorist coverage for the bodily 20
312		-	injury or death, a copy of the liability insurer’s written settlement offer. 21
	308	+	19–511.1. 17
313	309
314		-	19–511.1. 22
	310	+	(a) This section applies only when the first named insured under a policy or 18
	311	+	binder of private passenger motor vehicle liability insurance has [elected to obtain] NOT 19
	312	+	WAIVED AND THEREFORE MAINTAINS enhanced underinsured motorist coverage under 20
	313	+	§ 19–509.1 of this subtitle [instead of the uninsured motorist coverage required under § 21
	314	+	19–509 of this subtitle]. 22
315	315
316		-	(a) This section applies only when the first named insured under a policy or 23
317		-	binder of private passenger motor vehicle liability insurance has [elected to obtain] NOT 24
318		-	WAIVED AND THEREFORE MAINTAINS enhanced underinsured motorist coverage under 25
319		-	§ 19–509.1 of this subtitle [instead of the uninsured motorist coverage required under § 26
320		-	19–509 of this subtitle]. 27
	316	+	(b) If an injured person receives a written offer from a motor vehicle liability 23
	317	+	insurer or that insurer’s authorized agent to settle a claim for bodily injury or death, and 24
	318	+	the amount of the settlement offer, in combination with any other settlements arising out 25
	319	+	of the same occurrence, would exhaust the bodily injury or death limits of the applicable 26
	320	+	liability insurance policies, bonds, and securities, the injured person shall send by certified 27
	321	+	mail, to any insurer that provides enhanced underinsured motorist coverage for the bodily 28
	322	+	injury or death, a copy of the liability insurer’s written settlement offer. 29
321	323
322		-	(b) If an injured person receives a written offer from a motor vehicle liability 28
323		-	insurer or that insurer’s authorized agent to settle a claim for bodily injury or death, and 29
324		-	the amount of the settlement offer, in combination with any other settlements arising out 30
325		-	of the same occurrence, would exhaust the bodily injury or death limits of the applicable 31
326		-	liability insurance policies, bonds, and securities, the injured person shall send by certified 32
327		-	mail, to any insurer that provides enhanced underinsured motorist coverage for the bodily 33
328		-	injury or death, a copy of the liability insurer’s written settlement offer. 34
	324	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act applies to each policy 30
	325	+	of private passenger motor vehicle insurance issued, sold, or delivered in the State on or 31
	326	+	after July 1, 2023. 32
329	327
330		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act applies to each policy 35
331		-	of private passenger motor vehicle insurance issued, sold, or delivered in the State on or 36
332		-	after July 1, 2023. 37
333		-	8 HOUSE BILL 266
	328	+	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effec t 33
	329	+	October 1, 2022. 34
334	330
335		-
336		-	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
337		-	October 1, 2022. 2
338		-
339		-
340		-
341		-
342		-	Approved:
343		-	________________________________________________________________________________
344		-	Governor.
345		-	________________________________________________________________________________
346		-	Speaker of the House of Delegates.
347		-	________________________________________________________________________________
348		-	President of the Senate.