MD
Maryland House Bill HB128

Maryland 2023 Regular Session

Maryland House Bill HB128 Compare Versions

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1- WES MOORE, Governor Ch. 514
21
3-– 1 –
4-Chapter 514
5-(House Bill 128)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
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+ Italics indicate opposite chamber/conference committee amendments.
9+ *hb0128*
810
9-Private Passenger Motor Vehicle Liability Insurance – Enhanced Underinsured
10-Motorist Coverage – Opt–Out Option
11+HOUSE BILL 128
12+C4 (3lr0343)
13+ENROLLED BILL
14+— Economic Matters/Finance —
15+Introduced by Delegate Crosby
1116
12-FOR the purpose of converting enhanced underinsured motorist coverage from an opt–in
13-offering of coverage into an opt–out coverage option under certain provisions of law
14-establishing requirements for private passenger motor vehicle liability insurance;
15-and generally relating to private passenger motor vehicle liability insurance.
17+Read and Examined by Proofreaders:
1618
17-BY repealing and reenacting, without amendments,
18- Article – Insurance
19-Section 19–509(a) and (c), 19–510(b), 19–511(b), and 19–511.1(b)
20- Annotated Code of Maryland
21- (2017 Replacement Volume and 2022 Supplement)
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
2223
23-BY repealing and reenacting, with amendments,
24- Article – Insurance
25-Section 19–509(b), 19–509.1, 19–510(a), 19–511(a), and 19–511.1(a)
26- Annotated Code of Maryland
27- (2017 Replacement Volume and 2022 Supplement)
24+Sealed with the Great Seal and presented to the Governor, for his approval this
2825
29- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
30-That the Laws of Maryland read as follows:
26+_______ day of _______________ at _________________ _______ o’clock, ________M.
3127
32-Article – Insurance
28+______________________________________________
29+Speaker.
3330
34-19–509.
31+CHAPTER ______
3532
36- (a) In this section, “uninsured motor vehicle” means a motor vehicle:
33+AN ACT concerning 1
3734
38- (1) the ownership, maintenance, or use of which has resulted in the bodily
39-injury or death of an insured; and
35+Private Passenger Motor Vehicle Liability Insurance – Enhanced Underinsured 2
36+Motorist Coverage – Opt–Out Option 3
4037
41- (2) for which the sum of the limits of liability under all valid and collectible
42-liability insurance policies, bonds, and securities applicable to bodily injury or death:
38+FOR the purpose of converting enhanced underinsured motorist coverage from an opt–in 4
39+offering of coverage into an opt–out coverage option under certain provisions of law 5
40+establishing requirements for private passenger motor vehicle liability insurance; 6
41+and generally relating to private passenger motor vehicle liability insurance. 7
4342
44- (i) is less than the amount of coverage provided under this section;
45-or
43+BY repealing and reenacting, without amendments, 8
44+ Article – Insurance 9
45+Section 19–509(a) and (c), 19–510(b), 19–511(b), and 19–511.1(b) 10
46+ Annotated Code of Maryland 11
47+ (2017 Replacement Volume and 2022 Supplement) 12
4648
47- (ii) has been reduced by payment to other persons of claims arising
48-from the same occurrence to an amount less than the amount of coverage provided under
49-this section. Ch. 514 2023 LAWS OF MARYLAND
49+BY repealing and reenacting, with amendments, 13 2 HOUSE BILL 128
5050
51-– 2 –
5251
53- (b) The uninsured motorist coverage required by this section does not apply to a
54-motor vehicle liability insurance policy:
52+ Article – Insurance 1
53+Section 19–509(b), 19–509.1, 19–510(a), 19–511(a), and 19–511.1(a) 2
54+ Annotated Code of Maryland 3
55+ (2017 Replacement Volume and 2022 Supplement) 4
5556
56- (1) that insures a motor vehicle that:
57+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
58+That the Laws of Maryland read as follows: 6
5759
58- (i) is not subject to registration under § 13 –402 of the
59-Transportation Article because it is not driven on a highway; or
60+Article – Insurance 7
6061
61- (ii) is exempt from registration under § 13–402(c)(10) of the
62-Transportation Article; or
62+19–509. 8
6363
64- (2) if the first named insured under a policy or binder of private passenger
65-motor vehicle liability insurance has [elected to obtain] NOT WAIVED AND TH EREFORE
66-MAINTAINS enhanced underinsured motorist coverage under § 19–509.1 of this subtitle
67-[instead of the uninsured motorist coverage required under this section].
64+ (a) In this section, “uninsured motor vehicle” means a motor vehicle: 9
6865
69- (c) In addition to any other coverage required by this subtitle, each motor vehicle
70-liability insurance policy issued, sold, or delivered in the State after July 1, 1975, shall
71-contain coverage for damages, subject to the policy limits, that:
66+ (1) the ownership, maintenance, or use of which has resulted in the bodily 10
67+injury or death of an insured; and 11
7268
73- (1) the insured is entitled to recover from the owner or operator of an
74-uninsured motor vehicle because of bodily injuries sustained in a motor vehicle accident
75-arising out of the ownership, maintenance, or use of the uninsured motor vehicle;
69+ (2) for which the sum of the limits of liability under all valid and collectible 12
70+liability insurance policies, bonds, and securities applicable to bodily injury or death: 13
7671
77- (2) the insured is entitled to recover from the owner or operator of an
78-uninsured motor vehicle because of property damage, including loss of use of the insured
79-vehicle; and
72+ (i) is less than the amount of coverage provided under this section; 14
73+or 15
8074
81- (3) a surviving relative of the insured, who is described in § 3–904 of the
82-Courts Article, is entitled to recover from the owner or operator of an uninsured motor
83-vehicle because the insured died as the result of a motor vehicle accident arising out of the
84-ownership, maintenance, or use of the uninsured motor vehicle.
75+ (ii) has been reduced by payment to other persons of claims arising 16
76+from the same occurrence to an amount less than the amount of coverage provided under 17
77+this section. 18
8578
86-19–509.1.
79+ (b) The uninsured motorist coverage required by this section does not apply to a 19
80+motor vehicle liability insurance policy: 20
8781
88- (a) In this section, “underinsured motor vehicle” means a motor vehicle that has
89-liability coverage in an amount less than, more than, or equal to the uninsured motorist
90-coverage provided under the insured party’s motor vehicle liability insurance policy.
82+ (1) that insures a motor vehicle that: 21
9183
92- (b) The enhanced underinsured motorist coverage required by this section does
93-not apply to a motor vehicle liability insurance policy:
84+ (i) is not subject to registration under § 13 –402 of the 22
85+Transportation Article because it is not driven on a highway; or 23
9486
95- (1) that insures a motor vehicle that:
96- WES MOORE, Governor Ch. 514
87+ (ii) is exempt from registration under § 13–402(c)(10) of the 24
88+Transportation Article; or 25
9789
98-– 3 –
99- (i) is not subject to registration under § 13 –402 of the
100-Transportation Article because it is not driven on a highway; or
90+ (2) if the first named insured under a policy or binder of private passenger 26
91+motor vehicle liability insurance has [elected to obtain] NOT WAIVED AND THEREFORE 27
92+MAINTAINS enhanced underinsured motorist coverage under § 19–509.1 of this subtitle 28
93+[instead of the uninsured motorist coverage required under this section]. 29
10194
102- (ii) is exempt from registration under § 13–402(c)(10) of the
103-Transportation Article; or
95+ (c) In addition to any other coverage required by this subtitle, each motor vehicle 30
96+liability insurance policy issued, sold, or delivered in the State after July 1, 1975, shall 31
97+contain coverage for damages, subject to the policy limits, that: 32 HOUSE BILL 128 3
10498
105- (2) [when] IF a first named insured under a NEW policy or binder of private
106-passenger motor vehicle liability insurance ISSUED ON OR AFTER JULY 1, 2024, has [not
107-elected to obtain] WAIVED enhanced underinsured motorist coverage under this section
108-[instead of the uninsured motorist coverage required under § 19–509 of this subtitle]; OR
10999
110- (3) IF A FIRST NAMED INS URED ON A RENEWAL PO LICY ISSUED
111-BEFORE JULY 1, 2024, HAS NOT ELECTED TO OBTAIN EN HANCED UNDERINSURED
112-MOTORIST COVERAGE UN DER THIS SECTION .
113100
114- (c) (1) [An] UNLESS WAIVED IN ACCO RDANCE WITH THIS SUB SECTION,
115-AN insurer shall [offer] PROVIDE enhanced underinsured motorist coverage [at the time
116-of purchase of a private passenger motor vehicle liability insurance policy].
101+ (1) the insured is entitled to recover from the owner or operator of an 1
102+uninsured motor vehicle because of bodily injuries sustained in a motor vehicle accident 2
103+arising out of the ownership, maintenance, or use of the uninsured motor vehicle; 3
117104
118- (2) (I) The first named insured under a policy or binder of private
119-passenger motor vehicle liability insurance may elect to [obtain] WAIVE enhanced
120-underinsured motorist coverage AND instead [of the] MAINTAIN uninsured motorist
121-coverage required under § 19–509 of this subtitle.
105+ (2) the insured is entitled to recover from the owner or operator of an 4
106+uninsured motor vehicle because of property damage, including loss of use of the insured 5
107+vehicle; and 6
122108
123- (II) IF THE FIRST NAMED IN SURED DOES NOT WISH TO OBTAIN
124-THE ENHANCED UNDERIN SURED MOTORIST COVER AGE UNDER THIS SECTI ON, THE
125-FIRST NAMED INSURED SHALL MAKE AN AFFIRM ATIVE WRITTEN STATEMENT
126-WAIVING THE COVERAGE .
109+ (3) a surviving relative of the insured, who is described in § 3–904 of the 7
110+Courts Article, is entitled to recover from the owner or operator of an uninsured motor 8
111+vehicle because the insured died as the result of a motor vehicle accident arising out of the 9
112+ownership, maintenance, or use of the uninsured motor vehicle. 10
127113
128- (III) A WAIVER MADE UNDER TH IS SUBSECTION IS NOT
129-EFFECTIVE UNLESS , BEFORE THE WAIVER , THE INSURER GIVES TH E FIRST NAMED
130-INSURED WRITTEN NOTI CE OF THE NATURE , EXTENT, BENEFIT, AND COST OF THE
131-LEVEL OF THE ENHANCE D UNDERINSURED MOTORIST COVERAGE BEING WAIVE D.
114+19–509.1. 11
132115
133- (IV) 1. A WAIVER MADE UNDER TH IS SUBSECTION SHALL BE
134-MADE ON THE FORM THA T THE COMMISSIONER REQUIRES .
116+ (a) In this section, “underinsured motor vehicle” means a motor vehicle that has 12
117+liability coverage in an amount less than, more than, or equal to the uninsured motorist 13
118+coverage provided under the insured party’s motor vehicle liability insurance policy. 14
135119
136- 2. THE FORM MAY BE PART OF THE INSURANCE
137-CONTRACT.
120+ (b) The enhanced underinsured motorist coverage required by this section does 15
121+not apply to a motor vehicle liability insurance policy: 16
138122
139- 3. THE FORM SHALL CLEARL Y AND CONCISELY EXPL AIN
140-IN AT LEAST 10 14 POINT BOLDFACE TYPE :
141- Ch. 514 2023 LAWS OF MARYLAND
123+ (1) that insures a motor vehicle that: 17
142124
143-– 4 –
144- A. THE NATURE , EXTENT, BENEFIT, AND COST OF THE
145-LEVEL OF THE ENHANCE D UNDERINSURED MOTOR IST COVERAGE THAT WO ULD BE
146-PROVIDED UNDER THE P OLICY IF NOT WAIVED BY THE FIRST NAMED INSURED ;
125+ (i) is not subject to registration under § 13 –402 of the 18
126+Transportation Article because it is not driven on a highway; or 19
147127
148- B. THAT A FAILURE OF TH E FIRST NAMED INSURE D TO
149-MAKE A WAIVER REQUIR ES THE INSURER TO PR OVIDE ENHANCED UNDER INSURED
150-MOTORIST COVERAGE ;
128+ (ii) is exempt from registration under § 13–402(c)(10) of the 20
129+Transportation Article; or 21
151130
152- C. THAT THE INSURER MAY NOT REFUSE TO
153-UNDERWRITE A PERSON BECAUSE THE PERSON R EFUSES TO WAIVE THE ENHANCED
154-UNDERINSURED MOTORIS T COVERAGE UNDER THI S SUBSECTION; AND
131+ (2) [when] IF a first named insured under a NEW policy or binder of private 22
132+passenger motor vehicle liability insurance ISSUED ON OR AFTER JULY 1, 2024, has [not 23
133+elected to obtain] WAIVED enhanced underinsured motorist coverage under this section 24
134+[instead of the uninsured motorist coverage required under § 19–509 of this subtitle]; OR 25
155135
156- D. THAT A WAIVER MADE U NDER THIS SUBSECTION MUST
157-BE AN AFFIRMATIVE WR ITTEN WAIVER.
136+ (3) IF A FIRST NAMED INS URED ON A RENEWAL PO LICY ISSUED 26
137+BEFORE JULY 1, 2024, HAS NOT ELECTED TO O BTAIN ENHANCED UNDERINSURE D 27
138+MOTORIST COVERAGE UN DER THIS SECTION . 28
158139
159- (V) IF THE FIRST NAMED IN SURED DOES NOT MAKE AN
160-AFFIRMATIVE WRITTEN STATEMENT WAIVING TH E ENHANCED UNDERINSURED
161-MOTORIST COVERAGE , THE INSURER SHALL PR OVIDE THE COVERAGE U NDER THIS
162-SECTION.
140+ (c) (1) [An] UNLESS WAIVED IN ACCO RDANCE WITH THIS SUB SECTION, 29
141+AN insurer shall [offer] PROVIDE enhanced underinsured motorist coverage [at the time 30
142+of purchase of a private passenger motor vehicle liability insurance policy]. 31
163143
164- (3) Unless the first named insured affirmatively makes a change in
165-writing, the election to [obtain] WAIVE enhanced underinsured motorist coverage applies
166-to all subsequent renewals of coverage and to all other policies or endorsements that extend,
167-change, supersede, or replace an existing private passenger motor vehicle insurance policy
168-issued to the first named insured.
144+ (2) (I) The first named insured under a policy or binder of private 32
145+passenger motor vehicle liability insurance may elect to [obtain] WAIVE enhanced 33 4 HOUSE BILL 128
169146
170- (d) In addition to any other coverage required by this subtitle, each private
171-passenger motor vehicle liability insurance policy issued, sold, or delivered in the State on
172-or after July 1, [2018] 2024, to an insured that [elects to obtain] MAINTAINS enhanced
173-underinsured motorist coverage instead of the uninsured motorist coverage required under
174-§ 19–509 of this subtitle shall contain coverage for damages, subject to the policy limits,
175-that:
176147
177- (1) the insured is entitled to recover from the owner or operator of an
178-underinsured motor vehicle because of bodily injuries sustained in a motor vehicle accident
179-arising out of the ownership, maintenance, or use of the underinsured motor vehicle;
148+underinsured motorist coverage AND instead [of the] MAINTAIN uninsured motorist 1
149+coverage required under § 19–509 of this subtitle. 2
180150
181- (2) the insured is entitled to recover from the owner or operator of an
182-underinsured motor vehicle because of property damage, including loss of use of the insured
183-vehicle; and
151+ (II) IF THE FIRST NAMED IN SURED DOES NOT WISH TO OBTAIN 3
152+THE ENHANCED UNDERIN SURED MOTORIST COVER AGE UNDER THIS SECTI ON, THE 4
153+FIRST NAMED INSURED SHALL MAKE AN AFFIRM ATIVE WRITTEN STATEM ENT 5
154+WAIVING THE COVERAGE . 6
184155
185- (3) a surviving relative of the insured, who is described in § 3–904 of the
186-Courts Article, is entitled to recover from the owner or operator of an underinsured motor
187-vehicle because the insured died as the result of a motor vehicle accident arising out of the
188-ownership, maintenance, or use of the underinsured motor vehicle. WES MOORE, Governor Ch. 514
156+ (III) A WAIVER MADE UNDER TH IS SUBSECTION IS NOT 7
157+EFFECTIVE UNLESS , BEFORE THE WAIVER , THE INSURER GIVES TH E FIRST NAMED 8
158+INSURED WRITTEN NOTI CE OF THE NATURE , EXTENT, BENEFIT, AND COST OF THE 9
159+LEVEL OF THE ENHANCE D UNDERINSURED MOTO RIST COVERAGE BEING WAIVED. 10
189160
190-– 5 –
161+ (IV) 1. A WAIVER MADE UNDER TH IS SUBSECTION SHALL BE 11
162+MADE ON THE FORM THA T THE COMMISSIONER REQUIRES . 12
191163
192- (e) The [offer of] enhanced underinsured motorist coverage required by this
193-section shall be on the form that the Commissioner requires.
164+ 2. THE FORM MAY BE PART OF THE INSURANCE 13
165+CONTRACT. 14
194166
195- (f) (1) The enhanced underinsured motorist coverage contained in a private
196-passenger motor vehicle liability insurance policy:
167+ 3. THE FORM SHALL CLEARL Y AND CONCISELY EXPL AIN 15
168+IN AT LEAST 10 14 POINT BOLDFACE TYPE : 16
197169
198- (i) shall at least equal:
170+ A. THE NATURE , EXTENT, BENEFIT, AND COST OF THE 17
171+LEVEL OF THE ENHANCE D UNDERINSURED MOTOR IST COVERAGE THAT WO ULD BE 18
172+PROVIDED UNDER THE P OLICY IF NOT WAIVED BY THE FIRST NAMED I NSURED; 19
199173
200- 1. the amounts required by Title 17 of the Transportation
201-Article for bodily injury and property damage, including loss of use of the insured vehicle;
202-and
174+ B. THAT A FAILURE OF TH E FIRST NAMED INSURED TO 20
175+MAKE A WAIVER REQUIR ES THE INSURER TO PR OVIDE ENHANCED UNDER INSURED 21
176+MOTORIST COVERAGE ; 22
203177
204- 2. the coverage provided to a qualified person under Title 20,
205-Subtitle 6 of this article; and
178+ C. THAT THE INSURER MAY NOT REFUSE TO 23
179+UNDERWRITE A PERSON BECAUSE THE PERSON R EFUSES TO WAIVE THE ENHANCED 24
180+UNDERINSURED MOTORIS T COVERAGE UNDER THI S SUBSECTION; AND 25
206181
207- (ii) may not exceed the amount of liability coverage provided under
208-the policy.
182+ D. THAT A WAIVER MADE U NDER THIS SUBSECTION MUST 26
183+BE AN AFFIRMATIVE WR ITTEN WAIVER. 27
209184
210- (2) The amount of enhanced underinsured motorist coverage provided
211-under a private passenger motor vehicle liability insurance policy shall equal the amount
212-of liability coverage provided under the policy.
185+ (V) IF THE FIRST NAMED IN SURED DOES NOT MAKE AN 28
186+AFFIRMATIVE WRITTEN STATEMENT WAIVING TH E ENHANCED UNDERINSU RED 29
187+MOTORIST COVERAGE , THE INSURER SHALL PROVIDE THE COVERAGE UNDER THIS 30
188+SECTION. 31
213189
214- (g) An insurer may exclude from the enhanced underinsured motorist coverage
215-required by this section benefits for:
190+ (3) Unless the first named insured affirmatively makes a change in 32
191+writing, the election to [obtain] WAIVE enhanced underinsured motorist coverage applies 33 HOUSE BILL 128 5
216192
217- (1) the named insured or a family member of the named insured who
218-resides in the named insured’s household for an injury that occurs when the named insured
219-or family member is occupying or is struck as a pedestrian by an underinsured motor
220-vehicle that is owned by the named insured or an immediate family member of the named
221-insured who resides in the named insured’s household; and
222193
223- (2) the named insured, a family member of the named insured who resides
224-in the named insured’s household, and any other individual who has other applicable motor
225-vehicle insurance for an injury that occurs when the named insured, family member, or
226-other individual is occupying or is struck as a pedestrian by the insured motor vehicle while
227-the motor vehicle is operated or used by an individual who is excluded from coverage under
228-§ 27–609 of this article.
194+to all subsequent renewals of coverage and to all other policies or endorsements that extend, 1
195+change, supersede, or replace an existing private passenger motor vehicle insurance policy 2
196+issued to the first named insured. 3
229197
230- (h) The limit of liability for an insurer that provides enhanced underinsured
231-motorist coverage under this section:
198+ (d) In addition to any other coverage required by this subtitle, each private 4
199+passenger motor vehicle liability insurance policy issued, sold, or delivered in the State on 5
200+or after July 1, [2018] 2024, to an insured that [elects to obtain] MAINTAINS enhanced 6
201+underinsured motorist coverage instead of the uninsured motorist coverage required under 7
202+§ 19–509 of this subtitle shall contain coverage for damages, subject to the policy limits, 8
203+that: 9
232204
233- (1) is subject to § 19–511.1 of this subtitle; and
205+ (1) the insured is entitled to recover from the owner or operator of an 10
206+underinsured motor vehicle because of bodily injuries sustained in a motor vehicle accident 11
207+arising out of the ownership, maintenance, or use of the underinsured motor vehicle; 12
234208
235- (2) is the amount of that coverage without any reduction for the amount
236-paid to the insured, that exhausts any applicable liability insurance policies, bonds, and Ch. 514 2023 LAWS OF MARYLAND
209+ (2) the insured is entitled to recover from the owner or operator of an 13
210+underinsured motor vehicle because of property damage, including loss of use of the insured 14
211+vehicle; and 15
237212
238-– 6 –
239-securities, on behalf of any person that may be held liable for the bodily injuries or death
240-of the insured.
213+ (3) a surviving relative of the insured, who is described in § 3–904 of the 16
214+Courts Article, is entitled to recover from the owner or operator of an underinsured motor 17
215+vehicle because the insured died as the result of a motor vehicle accident arising out of the 18
216+ownership, maintenance, or use of the underinsured motor vehicle. 19
241217
242- (i) (1) A policy that, as its primary purpose, provides coverage in excess of
243-other valid and collectible insurance or qualified self–insurance may include the enhanced
244-underinsured motorist coverage provided for in this section.
218+ (e) The [offer of] enhanced underinsured motorist coverage required by this 20
219+section shall be on the form that the Commissioner requires. 21
245220
246- (2) The enhanced underinsured motorist coverage required by this section
247-is primary to any right to recovery from the Maryland Automobile Insurance Fund under
248-Title 20, Subtitle 6 of this article.
221+ (f) (1) The enhanced underinsured motorist coverage contained in a private 22
222+passenger motor vehicle liability insurance policy: 23
249223
250- (j) An endorsement or a provision that protects the insured against damages
251-caused by an underinsured motor vehicle that is contained in a policy issued and delivered
252-in the State is deemed to cover damages caused by a motor vehicle insured by a liability
253-insurer that is insolvent or otherwise unable to pay claims to the same extent and in the
254-same manner as if the damages were caused by an underinsured motor vehicle.
224+ (i) shall at least equal: 24
255225
256- (k) A provision in a private passenger motor vehicle liability insurance policy
257-issued on or after July 1, 2018, about coverage for damages sustained by the insured as a
258-result of the operation of an underinsured motor vehicle that requires a dispute between
259-the insured and the insurer to be submitted to binding arbitration is prohibited and is of
260-no legal effect.
226+ 1. the amounts required by Title 17 of the Transportation 25
227+Article for bodily injury and property damage, including loss of use of the insured vehicle; 26
228+and 27
261229
262-19–510.
230+ 2. the coverage provided to a qualified person under Title 20, 28
231+Subtitle 6 of this article; and 29
263232
264- (a) This section applies only when:
233+ (ii) may not exceed the amount of liability coverage provided under 30
234+the policy. 31
265235
266- (1) the liability coverage under a policy or binder of private passenger
267-motor vehicle liability insurance exceeds the amount required under § 17–103 of the
268-Transportation Article; and
236+ (2) The amount of enhanced underinsured motorist coverage provided 32
237+under a private passenger motor vehicle liability insurance policy shall equal the amount 33
238+of liability coverage provided under the policy. 34
239+ 6 HOUSE BILL 128
269240
270- (2) the first named insured under a policy or binder of private passenger
271-motor vehicle liability insurance has [not elected to obtain] WAIVED enhanced
272-underinsured motorist coverage under § 19–509.1 of this subtitle AND instead [of the]
273-MAINTAINS uninsured motorist coverage required under § 19–509 of this subtitle
274-UNINSURED MOTORIST C OVERAGE REQUIRED UND ER § 19–509 OF THIS SUBTITLE
275-AND HAS NOT OBTAINED ENHANCED UNDERINSURE D MOTORIST COVERAGE UNDER
276-§ 19–509.1 OF THIS SUBTITLE.
277241
278- (b) (1) If the first named insured under a policy or binder of private passenger
279-motor vehicle liability insurance does not wish to obtain uninsured motorist coverage in the
280-same amount as the liability coverage provided under the policy or binder, the first named
281-insured shall make an affirmative written waiver of having uninsured motorist coverage in
282-the same amount as the liability coverage.
283- WES MOORE, Governor Ch. 514
242+ (g) An insurer may exclude from the enhanced underinsured motorist coverage 1
243+required by this section benefits for: 2
284244
285-– 7 –
286- (2) If the first named insured does not make an affirmative written waiver
287-under this section, the insurer shall provide uninsured motorist coverage in an amount
288-equal to the amount of the liability coverage provided under the policy or binder.
245+ (1) the named insured or a family member of the named insured who 3
246+resides in the named insured’s household for an injury that occurs when the named insured 4
247+or family member is occupying or is struck as a pedestrian by an underinsured motor 5
248+vehicle that is owned by the named insured or an immediate family member of the named 6
249+insured who resides in the named insured’s household; and 7
289250
290-19–511.
251+ (2) the named insured, a family member of the named insured who resides 8
252+in the named insured’s household, and any other individual who has other applicable motor 9
253+vehicle insurance for an injury that occurs when the named insured, family member, or 10
254+other individual is occupying or is struck as a pedestrian by the insured motor vehicle while 11
255+the motor vehicle is operated or used by an individual who is excluded from coverage under 12
256+§ 27–609 of this article. 13
291257
292- (a) This section [does not apply] APPLIES ONLY when the first named insured
293-under a policy or binder of private passenger motor vehicle liability insurance has [elected
294-to obtain] WAIVED enhanced underinsured motorist coverage under § 19–509.1 of this
295-subtitle AND instead [of the] MAINTAINS uninsured motorist coverage required under §
296-19–509 of this subtitle.
258+ (h) The limit of liability for an insurer that provides enhanced underinsured 14
259+motorist coverage under this section: 15
297260
298- (b) If an injured person receives a written offer from a motor vehicle insurance
299-liability insurer or that insurer’s authorized agent to settle a claim for bodily injury or
300-death, and the amount of the settlement offer, in combination with any other settlements
301-arising out of the same occurrence, would exhaust the bodily injury or death limits of the
302-applicable liability insurance policies, bonds, and securities, the injured person shall send
303-by certified mail, to any insurer that provides uninsured motorist coverage for the bodily
304-injury or death, a copy of the liability insurer’s written settlement offer.
261+ (1) is subject to § 19–511.1 of this subtitle; and 16
305262
306-19–511.1.
263+ (2) is the amount of that coverage without any reduction for the amount 17
264+paid to the insured, that exhausts any applicable liability insurance policies, bonds, and 18
265+securities, on behalf of any person that may be held liable for the bodily injuries or death 19
266+of the insured. 20
307267
308- (a) This section applies only when the first named insured under a policy or
309-binder of private passenger motor vehicle liability insurance has [elected to obtain] NOT
310-WAIVED AND THEREFORE MAINTAINS enhanced underinsured motorist coverage under
311-§ 19–509.1 of this subtitle [instead of the uninsured motorist coverage required under §
312-19–509 of this subtitle].
268+ (i) (1) A policy that, as its primary purpose, provides coverage in excess of 21
269+other valid and collectible insurance or qualified self–insurance may include the enhanced 22
270+underinsured motorist coverage provided for in this section. 23
313271
314- (b) If an injured person receives a written offer from a motor vehicle liability
315-insurer or that insurer’s authorized agent to settle a claim for bodily injury or death, and
316-the amount of the settlement offer, in combination with any other settlements arising out
317-of the same occurrence, would exhaust the bodily injury or death limits of the applicable
318-liability insurance policies, bonds, and securities, the injured person shall send by certified
319-mail, to any insurer that provides enhanced underinsured motorist coverage for the bodily
320-injury or death, a copy of the liability insurer’s written settlement offer.
272+ (2) The enhanced underinsured motorist coverage required by this section 24
273+is primary to any right to recovery from the Maryland Automobile Insurance Fund under 25
274+Title 20, Subtitle 6 of this article. 26
321275
322- SECTION 2. AND BE IT FURTHER ENACTED, That:
276+ (j) An endorsement or a provision that protects the insured against damages 27
277+caused by an underinsured motor vehicle that is contained in a policy issued and delivered 28
278+in the State is deemed to cover damages caused by a motor vehicle insured by a liability 29
279+insurer that is insolvent or otherwise unable to pay claims to the same extent and in the 30
280+same manner as if the damages were caused by an underinsured motor vehicle. 31
323281
324- (a) The Maryland Insurance Administration shall conduct a study on the impact
325-of converting enhanced underinsured motorist coverage under private passenger motor
326-vehicle liability insurance from an opt–in coverage option to an opt–out coverage option.
282+ (k) A provision in a private passenger motor vehicle liability insurance policy 32
283+issued on or after July 1, 2018, about coverage for damages sustained by the insured as a 33
284+result of the operation of an underinsured motor vehicle that requires a dispute between 34
285+the insured and the insurer to be submitted to binding arbitration is prohibited and is of 35
286+no legal effect. 36
327287
328- (b) The study shall include:
288+19–510. 37 HOUSE BILL 128 7
329289
330- (1) a comparison of the rate of selection of enhanced underinsured motorist
331-coverage before and after the implementation of this Act; Ch. 514 2023 LAWS OF MARYLAND
332290
333-– 8 –
334291
335- (2) an analysis of the impact on premiums from enhanced underinsured
336-motorist coverage being offered as a default selection for coverage, including the
337-identification and analysis of any factors contributing to any observed impact on premiums
338-relating to the offering of enhanced underinsured motorist coverage as a default selection for
339-coverage;
292+ (a) This section applies only when: 1
340293
341- (3) to the extent information is available, an analysis of the impact of the
342-offering of enhanced underinsured motorist coverage as a default option on compensation
343-for damages resulting from motor vehicle accidents, including the impact on out–of–pocket
344-costs incurred by insureds for damages exceeding policy limits;
294+ (1) the liability coverage under a policy or binder of private passenger 2
295+motor vehicle liability insurance exceeds the amount required under § 17–103 of the 3
296+Transportation Article; and 4
345297
346- (4) a review of notice and waiver procedures relating to the offering of
347-enhanced underinsured motorist coverage as a default coverage option to:
298+ (2) the first named insured under a policy or binder of private passenger 5
299+motor vehicle liability insurance has [not elected to obtain] WAIVED enhanced 6
300+underinsured motorist coverage under § 19–509.1 of this subtitle AND instead [of the] 7
301+MAINTAINS uninsured motorist coverage required under § 19–509 of this subtitle 8
302+UNINSURED MOTORIST C OVERAGE REQUIRED UND ER § 19–509 OF THIS SUBTITLE 9
303+AND HAS NOT OBTAINED ENHANCED UNDERINSURE D MOTORIST COVERAGE UNDER 10
304+§ 19–509.1 OF THIS SUBTITLE . 11
348305
349- (i) assess whether consumers are aware of the uninsured motorist
350-and enhanced underinsured motorist coverage options and able to make an informed
351-selection from the description of the coverage options and the per vehicle premium associated
352-with each option; and
306+ (b) (1) If the first named insured under a policy or binder of private passenger 12
307+motor vehicle liability insurance does not wish to obtain uninsured motorist coverage in the 13
308+same amount as the liability coverage provided under the policy or binder, the first named 14
309+insured shall make an affirmative written waiver of having uninsured motorist coverage in 15
310+the same amount as the liability coverage. 16
353311
354- (ii) make recommendations regarding any changes to notice and
355-coverage selection procedures to improve consumer awareness and informed decision
356-making regarding uninsured motorist and enhanced underinsured motorist coverage; and
312+ (2) If the first named insured does not make an affirmative written waiver 17
313+under this section, the insurer shall provide uninsured motorist coverage in an amount 18
314+equal to the amount of the liability coverage provided under the policy or binder. 19
357315
358- (5) any other relevant matters relating to the offering of uninsured motorist
359-and enhanced underinsured motorist coverage by private passenger motor vehicle liability
360-insurers.
316+19–511. 20
361317
362- (c) (1) On or before December 31, 2026, the Maryland Insurance
363-Administration shall submit an interim report to the Governor and, in accordance with §
364-2–1257 of the State Government Article, the Senate Finance Committee and the House
365-Economic Matters Committee that includes any initial findings and recommendations from
366-the study required under this section.
318+ (a) This section [does not apply] APPLIES ONLY when the first named insured 21
319+under a policy or binder of private passenger motor vehicle liability insurance has [elected 22
320+to obtain] WAIVED enhanced underinsured motorist coverage under § 19–509.1 of this 23
321+subtitle AND instead [of the] MAINTAINS uninsured motorist coverage required under § 24
322+19–509 of this subtitle. 25
367323
368- (2) On or before December 31, 2028, the Maryland Insurance
369-Administration shall submit a final report to the Governor and, in accordance with § 2–1257
370-of the State Government Article, the Senate Finance Committee and the House Economic
371-Matters Committee that includes the findings and recommendations from the study required
372-under this section.
324+ (b) If an injured person receives a written offer from a motor vehicle insurance 26
325+liability insurer or that insurer’s authorized agent to settle a claim for bodily injury or 27
326+death, and the amount of the settlement offer, in combination with any other settlements 28
327+arising out of the same occurrence, would exhaust the bodily injury or death limits of the 29
328+applicable liability insurance policies, bonds, and securities, the injured person shall send 30
329+by certified mail, to any insurer that provides uninsured motorist coverage for the bodily 31
330+injury or death, a copy of the liability insurer’s written settlement offer. 32
373331
374- SECTION 2. 3. AND BE IT FURTHER ENACTED, Tha t this Act applies to each
375-policy of private passenger motor vehicle insurance issued, sold, or delivered in the State
376-on or after July 1, 2024.
332+19–511.1. 33
377333
378- SECTION 3. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect
379-October 1, 2023. It shall remain effective for a period of 5 years and 8 months, and, at the WES MOORE, Governor Ch. 514
334+ (a) This section applies only when the first named insured under a policy or 34
335+binder of private passenger motor vehicle liability insurance has [elected to obtain] NOT 35
336+WAIVED AND THEREFORE MAINTAINS enhanced underinsured motorist coverage under 36 8 HOUSE BILL 128
380337
381-– 9 –
382-end of June 30, 2029, this Act, with no further action required by the General Assembly,
383-shall be abrogated and of no further force and effect.
384338
385-Approved by the Governor, May 8, 2023.
339+§ 19–509.1 of this subtitle [instead of the uninsured motorist coverage required under § 1
340+19–509 of this subtitle]. 2
341+
342+ (b) If an injured person receives a written offer from a motor vehicle liability 3
343+insurer or that insurer’s authorized agent to settle a claim for bodily injury or death, and 4
344+the amount of the settlement offer, in combination with any other settlements arising out 5
345+of the same occurrence, would exhaust the bodily injury or death limits of the applicable 6
346+liability insurance policies, bonds, and securities, the injured person shall send by certified 7
347+mail, to any insurer that provides enhanced underinsured motorist coverage for the bodily 8
348+injury or death, a copy of the liability insurer’s written settlement offer. 9
349+
350+ SECTION 2. AND BE IT FURTHER ENACTED, That: 10
351+
352+ (a) The Maryland Insurance Administration shall conduct a study on the impact 11
353+of converting enhanced underinsured motorist coverage under private passenger motor 12
354+vehicle liability insurance from an opt–in coverage option to an opt–out coverage option. 13
355+
356+ (b) The study shall include: 14
357+
358+ (1) a comparison of the rate of selection of enhanced underinsured motorist 15
359+coverage before and after the implementation of this Act; 16
360+
361+ (2) an analysis of the impact on premiums from enhanced underinsured 17
362+motorist coverage being offered as a default selection for coverage, including the 18
363+identification and analysis of any factors contributing to any observed impact on premiums 19
364+relating to the offering of enhanced underinsured motorist coverage as a default selection for 20
365+coverage; 21
366+
367+ (3) to the extent information is available, an analysis of the impact of the 22
368+offering of enhanced underinsured motorist coverage as a default option on compensation 23
369+for damages resulting from motor vehicle accidents, including the impact on out–of–pocket 24
370+costs incurred by insureds for damages exceeding policy limits; 25
371+
372+ (4) a review of notice and waiver procedures relating to the offering of 26
373+enhanced underinsured motorist coverage as a default coverage option to: 27
374+
375+ (i) assess whether consumers are aware of the uninsured motorist 28
376+and enhanced underinsured motorist coverage options and able to make an informed 29
377+selection from the description of the coverage options and the per vehicle premium associated 30
378+with each option; and 31
379+
380+ (ii) make recommendations regarding any changes to notice and 32
381+coverage selection procedures to improve consumer awareness and informed decision 33
382+making regarding uninsured motorist and enhanced underinsured motorist coverage; and 34
383+ HOUSE BILL 128 9
384+
385+
386+ (5) any other relevant matters relating to the offering of uninsured motorist 1
387+and enhanced underinsured motorist coverage by private passenger motor vehicle liability 2
388+insurers. 3
389+
390+ (c) (1) On or before December 31, 2026, the Maryland Insurance 4
391+Administration shall submit an interim report to the Governor and, in accordance with § 5
392+2–1257 of the State Government Article, the Senate Finance Committee and the House 6
393+Economic Matters Committee that includes any initial findings and recommendations from 7
394+the study required under this section. 8
395+
396+ (2) On or before December 31, 2028, the Maryland Insurance 9
397+Administration shall submit a final report to the Governor and, in accordance with § 2–1257 10
398+of the State Government Article, the Senate Finance Committee and the House Economic 11
399+Matters Committee that includes the findings and recommendations from the study required 12
400+under this section. 13
401+
402+ SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act applies to each 14
403+policy of private passenger motor vehicle insurance issued, sold, or delivered in the State 15
404+on or after July 1, 2024. 16
405+
406+ SECTION 3. 4. AND BE IT FURTHER ENACTED, That this Act shal l take effect 17
407+October 1, 2023. It shall remain effective for a period of 5 years and 8 months, and, at the 18
408+end of June 30, 2029, this Act, with no further action required by the General Assembly, 19
409+shall be abrogated and of no further force and effect. 20
410+
411+
412+
413+
414+Approved:
415+________________________________________________________________________________
416+ Governor.
417+________________________________________________________________________________
418+ Speaker of the House of Delegates.
419+________________________________________________________________________________
420+ President of the Senate.