Maryland 2025 Regular Session

Maryland Senate Bill SB984 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
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		sb0984
9	6
10	7		SENATE BILL 984
11	8		C4 5lr2907
12	9
13	10		By: Senator A. Washington
14	11		Introduced and read first time: January 28, 2025
15	12		Assigned to: Finance
16		-	Committee Report: Favorable with amendments
17		-	Senate action: Adopted
18		-	Read second time: February 28, 2025
19	13
20		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
21	15
22	16		AN ACT concerning 1
23	17
24	18		Private Passenger Motor Vehicle Insurance – Use of Telematics Systems 2
25		-	Programs That Measure the Operation of an Insured Vehicle 3
26	19
27		-	FOR the purpose of requiring an insurer that issues, sells, or delivers private passenger 4
28		-	motor vehicle insurance policies in the State to disclose the use of certain telematics 5
29		-	systems a program that measures the operation of an insured vehicle and to 6
30		-	establish an appeals a process by which a policyholder may challenge correct or 7
31		-	appeal data the policyholder believes to be erroneous; requiring the Maryland 8
32		-	Insurance Administration to adopt regulations limiting the types and amounts of 9
33		-	data that may be collected through telematic systems a program that measures the 10
34		-	operation of an insured vehicle for use by a private passenger motor vehicle insurer; 11
35		-	prohibiting an insurer that issues, sells, or delivers private passenger motor vehicle 12
36		-	insurance policies in the State from using data obtained collected through telematics 13
37		-	systems a program that measures the operation of an insured vehicle to establish 14
38		-	certain premiums or to take certain actions with respect to a policy; prohibiting 15
39		-	insurers with respect to certain private passenger motor vehicle insurance policies 16
40		-	from initiating a premium increase in increments of less than a certain number of 17
41		-	months from the date the policy goes into effect; and generally relating to private 18
42		-	motor vehicle insurance and the use of telematics programs that measure the 19
43		-	operation of an insured vehicle. 20
	20	+	FOR the purpose of requiring an insurer that issues, sells, or delivers private passenger 3
	21	+	motor vehicle insurance policies in the State to disclose the use of certain telematics 4
	22	+	systems and to establish an appeals process by which a policyholder may challenge 5
	23	+	data the policyholder believes to be erroneous; requiring the Maryland Insurance 6
	24	+	Administration to adopt regulations limiting the types and amounts of data that may 7
	25	+	be collected through telematic systems for use by a private passenger motor vehicle 8
	26	+	insurer; prohibiting an insurer that issues, sells, or delivers private passenger motor 9
	27	+	vehicle insurance policies in the State from using data obtained through telematics 10
	28	+	systems to establish certain premiums or to take certain actions with respect to a 11
	29	+	policy; and generally relating to private motor vehicle insurance and the use of 12
	30	+	telematics. 13
44	31
45		-	BY repealing and reenacting, without amendments, 21
46		-	Article – Insurance 22
47		-	Section 12–106(b) 23
48		-	Annotated Code of Maryland 24 2 SENATE BILL 984
	32	+	BY adding to 14
	33	+	Article – Insurance 15
	34	+	Section 19–521 and 27–908 16
	35	+	Annotated Code of Maryland 17
	36	+	(2017 Replacement Volume and 2024 Supplement) 18
	37	+
	38	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
	39	+	That the Laws of Maryland read as follows: 20
	40	+
	41	+	Article – Insurance 21
	42	+
	43	+	19–521. 22
	44	+
	45	+	(A) IN THIS SECTION , “TELEMATICS” MEANS A METHOD OF CO LLECTING 23
	46	+	DATA RELATED TO ANY OF THE FOLLOWING DAT A POINTS REGARDING A VEHICLE OR 24 2 SENATE BILL 984
49	47
50	48
51		-	(2017 Replacement Volume and 2024 Supplement) 1
	49	+	DRIVER USING RECORDI NG SENSORS OR A TELE COMMUNICATIONS DEVIC E FOR 1
	50	+	TRANSMITTAL OF THE D ATA, AND A SECURED SERVER TO STORE THE DATA: 2
52	51
53		-	BY adding to 2
54		-	Article – Insurance 3
55		-	Section 12–307 and 19–521 and 27–908 4
56		-	Annotated Code of Maryland 5
57		-	(2017 Replacement Volume and 2024 Supplement) 6
	52	+	(1) VEHICLE SPEED , LOCATION, MILEAGE, AND OPERATING HOURS ; 3
58	53
59		-	BY repealing and reenacting, with amendments, 7
60		-	Article – Insurance 8
61		-	Section 27–501(t) 9
62		-	Annotated Code of Maryland 10
63		-	(2017 Replacement Volume and 2024 Supplement) 11
	54	+	(2) DRIVER ACCELERATION , BRAKING, AND CORNERING HABITS ; 4
64	55
65		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
66		-	That the Laws of Maryland read as follows: 13
	56	+	(3) ENGINE DIAGNOSTICS ; AND 5
67	57
68		-	Article – Insurance 14
	58	+	(4) ANY OTHER DATA POINT RELATED TO THE USE A ND OPERATION 6
	59	+	OF THE INSURED VEHIC LE THAT HAS BE EN FILED WITH AND AP PROVED BY THE 7
	60	+	COMMISSIONER . 8
69	61
70		-	12–106. 15
	62	+	(B) AN INSURER THAT ISSUE S, SELLS, OR DELIVERS PRIVATE PASSENGER 9
	63	+	MOTOR VEHICLE INSURANCE POLICIES I N THE STATE SHALL DISCLOSE TO TH E 10
	64	+	INSURED ANY USE OF T ELEMATICS TO OBTAIN DATA OF THE INSURED ’S DRIVING 11
	65	+	HABITS OR VEHICLE. 12
71	66
72		-	(b) This section applies only to a binder or policy, other than a renewal policy, of 16
73		-	personal insurance, commercial property insurance, and commercial liability insurance. 17
	67	+	(C) THE ADMINISTRATION SHALL ADOPT REGULATIONS TO LIMIT THE 13
	68	+	TYPES AND AMOUNT OF DATA THAT MAY BE COL LECTED BY TELEMATICS SYSTEMS 14
	69	+	FOR USE BY AN INSURE R THAT ISSUES , SELLS, OR DELIVERS PRIVATE MOTOR 15
	70	+	VEHICLE INSUR ANCE POLICIES IN THE STATE. 16
74	71
75		-	12–307. 18
	72	+	(D) THE ADMINISTRATION MAY RE QUIRE AN INSURER THA T USES A 17
	73	+	TELEMATICS SYSTEM TO PERIODICALLY : 18
76	74
77		-	EXCEPT AS PROVIDED IN § 12–106 OF THIS TITLE, WITH RESPECT TO PRIV ATE 19
78		-	PASSENGER MOTOR VEHI CLE INSURANCE POLICI ES THAT MEASURE THE 20
79		-	OPERATION OF AN INSURED VEHICLE, AN INSURER MAY NOT I NITIATE A PREMIUM 21
80		-	INCREASE IN INCREMEN TS OF LESS THAN 6 MONTHS FROM THE DATE THE POLICY 22
81		-	GOES INTO EFFECT . 23
	75	+	(1) AUDIT THE TELEMATICS SYSTEM TO ENSURE THA T IT COLLECTS, 19
	76	+	PROCESSES, AND CALCULATES THE I MPACT OF DATA ON INS URER–WIDE PREMIUM 20
	77	+	RATES IN A MANNER TH AT IS ACTUARIALLY SOUND AND FREE OF UNFAIR BIAS; AND 21
82	78
83		-	19–521. 24
	79	+	(2) SUBMIT A REPORT TO T HE ADMINISTRATION SUMMAR IZING THE 22
	80	+	SCOPE, METHODOLOGIES , AND FINDINGS OF THE AUDIT. 23
84	81
85		-	(A) IN THIS SECTION , “TELEMATICS” MEANS A METHOD OF CO LLECTING 25
86		-	DATA RELATED TO ANY OF THE FOLLOWING DATA POINT S REGARDING A VEHICL E OR 26
87		-	DRIVER USING RECORDI NG SENSORS OR A TELE COMMUNICATIONS DEVIC E FOR 27
88		-	TRANSMITTAL OF THE D ATA, AND A SECURED SERVER TO STORE THE DATA : 28
	82	+	27–908. 24
89	83
90		-	(1) VEHICLE SPEED , LOCATION, MILEAGE, AND OPERATING HOURS ; 29
	84	+	(A) IN THIS SECTION, “TELEMATICS” HAS THE MEANING STAT ED IN § 19–521 25
	85	+	OF THIS ARTICLE. 26
91	86
92		-	(2) ~~DRIVER ACCELERATION~~ , ~~BRAKING~~, ~~AND CORNERING HABITS ; 30~~
93		-
94		-	~~(3) ENGINE DIAGNOSTICS ; AND 31~~
	87	+	(B) AN INSURER THAT ISSUE S, SELLS, OR DELIVERS PRIVATE PASSENGER 27
	88	+	MOTOR VEHICLE INSURANCE POLICIES IN THE STATE MAY NOT USE DAT A OBTAINED 28
	89	+	THROUGH TELEMATICS F ROM A SPECIFIC VEHIC LE, WHOLLY OR PARTLY : 29
95	90		SENATE BILL 984 3
96		-
97		-
98		-	(4) ANY OTHER DATA POINT RELATED TO THE USE A ND OPERATION 1
99		-	OF THE INSURED VEHIC LE THAT HAS BEEN FIL ED WITH AND APPROVED BY THE 2
100		-	COMMISSIONER . 3
101		-
102		-	(B) (A) (1) AN INSURER THAT ISSUES, SELLS, OR DELIVERS PRIVATE 4
103		-	PASSENGER MOTOR VEHI CLE INSURANCE POLICI ES IN THE STATE SHALL DISCLOSE 5
104		-	TO THE INSURED APPLICANT AT THE TIM E OF APPLICATION OR THE POLICYHOLDER 6
105		-	AT THE TIME OF RENEW AL ANY USE OF TELEMATICS TO OBTAIN DATA OF THE 7
106		-	INSURED’S DRIVING HABITS OR A PROGRAM THAT MEASU RES THE OPERATION OF AN 8
107		-	INSURED VEHICLE. 9
108		-
109		-	(2) THE DISCLOSURE REQUIR ED UNDER PARAGRAPH (1) OF THIS 10
110		-	SUBSECTION SHALL BE PROVIDED IN THE MANN ER SPECIFIED BY THE 11
111		-	ADMINISTRATION . 12
112		-
113		-	(B) AN INSURER THAT IMPLE MENTS THE U SE OF A PROGRAM THAT 13
114		-	MEASURES THE OPERATI ON OF AN INSURED VEH ICLE SHALL ESTABLISH A PROCESS 14
115		-	BY WHICH THE POLICYH OLDER MAY CORRECT OR APPEAL DATA COLLECTE D 15
116		-	THROUGH THE PROGRAM THAT THE POLICYHOLDE R BELIEVES IS ERRONE OUS. 16
117		-
118		-	(C) THE ADMINISTRATION SHALL ADOPT REGULATIONS TO LIMIT THE 17
119		-	TYPES AND AMOUNT OF DATA THAT MAY BE COL LECTED BY TELEMATICS SYSTEMS A 18
120		-	PROGRAM THAT MEASURE S THE OPERATION OF A N INSURED VEHICLE FOR USE BY 19
121		-	AN INSURER THAT ISSU ES, SELLS, OR DELIVERS PRIVATE PASSENGER MOTOR 20
122		-	VEHICLE INSURANCE PO LICIES IN THE STATE. 21
123		-
124		-	(D) THE ADMINISTRATION MAY RE QUIRE AN INSURER THA T USES A 22
125		-	TELEMATICS SYSTEM PROGRAM THAT MEASURE S THE OPERATION OF A N INSURED 23
126		-	VEHICLE TO PERIODICALLY ESTABLISH AND IMPLEM ENT A GOVERNANCE PLA N 24
127		-	THAT INCLUDES : 25
128		-
129		-	(1) AUDIT THE TELEMATICS SYSTEM TO ENSURE THA T IT COLLECTS, 26
130		-	PROCESSES, AND CALCULATES THE I MPACT OF DATA ON INS URER–WIDE PREMIUM 27
131		-	RATES IN A MANNER TH AT IS ACTUARIALLY SO UND AND FREE OF UNFA IR BIAS 28
132		-	MONITORING THE PROGR AM TO ENSURE THAT IT DOES NOT COLLECT OR PROCESS 29
133		-	DATA IN A MANNE R THAT IS UNFAIRLY D ISCRIMINATORY , IMPACTS PREMIUM RATE S 30
134		-	IN A MANNER THAT LAC KS ACTUARIAL JUSTIFI CATION, OR OTHERWISE VIOLATE S 31
135		-	THIS ARTICLE; 32
136		-
137		-	(2) CORRECTING OR MITIGA TING A FINDING THAT THE PROGRAM 33
138		-	COLLECTS OR PROCESSE S DATA IN A MANNER T HAT IS UNFAIRLY DISCRIMINATORY , 34
139		-	IMPACTS PREMIUM RATE S IN A MANNER THAT L ACKS ACTUARIAL JUSTI FICATION, 35
140		-	OR OTHERWISE VIOLATE S THIS ARTICLE; AND 36
141		-	4 SENATE BILL 984
142		-
143		-
144		-	(2) (3) SUBMIT A REPORT PERIODICALLY REPORTI NG TO THE 1
145		-	ADMINISTRATION SUMMARIZING ON: 2
146		-
147		-	(I) THE SCOPE , METHODOLOGIES , AND FINDINGS OF THE 3
148		-	AUDIT PROGRAM MONITORING I N ACCORDANCE WITH TH E GOVERNANCE PLAN ; AND 4
149		-
150		-	(II) ANY CORRECTIVE ACTIO N OR MITIGATION MEAS URE TAKEN 5
151		-	IN ACCORDANCE WITH T HE GOVERNANCE PLAN . 6
152		-
153		-	27–501. 7
154		-
155		-	(t) With respect to private passenger motor vehicle insurance, an insurer may 8
156		-	not: 9
157		-
158		-	(1) require an applicant or a policyholder to participate in a program that 10
159		-	measures the operation of an insured vehicle as a condition for underwriting a private 11
160		-	passenger motor vehicle insurance risk [unless the insurer: 12
161		-
162		-	(1) only offers private passenger motor vehicle insurance products that 13
163		-	require insureds to participate in a program that measures the operation of an insured 14
164		-	vehicle; 15
165		-
166		-	(2) discloses the information in item (1) of this subsection to: 16
167		-
168		-	(i) the applicant at the time of application; and 17
169		-
170		-	(ii) the policyholder at the time of renewal; and 18
171		-
172		-	(3) includes the information in item (1) of this subsection in any advertising 19
173		-	materials for the insurance products offered by the insurer]; OR 20
174		-
175		-	(2) USE DATA COLLECTED T HROUGH A PROGRAM THA T MEASURES 21
176		-	THE OPERATION OF AN INSURED VEHICLE TO C ANCEL, REFUSE TO RENEW , OR 22
177		-	REFUSE TO UNDERWRITE A PRIVATE PASSENGER AUTOMOBILE INSURANCE POLICY 23
178		-	RISK. 24
179		-
180		-	27–908. 25
181		-
182		-	(A) IN THIS SECTION, “TELEMATICS” HAS THE MEANING STATED I N § 19–521 26
183		-	OF THIS ARTICLE. 27
184		-
185		-	(B) AN INSURER THAT ISSUE S, SELLS, OR DELIVERS PRIVATE PASSENGER 28
186		-	MOTOR VEHICLE INSURA NCE POLICIES IN THE STATE MAY NOT USE DAT A OBTAINED 29
187		-	THROUGH TELEMATICS F ROM A SPECIFIC VEHIC LE, WHOLLY OR PARTLY : 30
188		-	SENATE BILL 984 5
189	91
190	92
191	93		(1) FOR ESTABLISHING AN INSURANCE PREMIUM FO R THE POLICY 1
192	94		THAT INSURES THAT VE HICLE; OR 2
193	95
194	96		(2) TO CANCEL, REFUSE TO RENEW, OR REFUSE TO UNDERWR ITE A 3
195	97		PRIVATE PASSENGER AU TOMOBILE INSURANCE P OLICY. 4
196	98
197	99		(C) AN INSURER THAT IMPLE MENTS THE USE OF A T ELEMATICS SYSTEM 5
198	100		SHALL ESTABLISH A PR OCESS BY WHICH THE P OLICYHOLDER MAY CORRECT OR 6
199	101		APPEAL TELEMATICS DA TA THAT THE POLICYHO LDER BELIEVES IS ERR ONEOUS. 7
200	102
201	103		SECTION 2. AND BE IT FURTHER ENACTED, That the Maryland Insurance 8
202	104		Administration shall adopt the regulations required under § 19–521(c) of the Insurance 9
203		-	Article, as enacted by Section 1 of this Act, on or before December 31, 2025 ~~July 1, 2026~~. 10
	105	+	Article, as enacted by Section 1 of this Act, on or before December 31, 2025. 10
204	106
205	107		SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
206	108		October 1, 2025. 12
207		-
208		-
209		-
210		-
211		-	Approved:
212		-	________________________________________________________________________________
213		-	Governor.
214		-	________________________________________________________________________________
215		-	President of the Senate.
216		-	________________________________________________________________________________
217		-	Speaker of the House of Delegates.