EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0984*
SENATE BILL 984
C4 5lr2907
By: Senator A. Washington
Introduced and read first time: January 28, 2025
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 28, 2025
CHAPTER ______
AN ACT concerning 1
Private Passenger Motor Vehicle Insurance – Use of Telematics Systems 2
Programs That Measure the Operation of an Insured Vehicle 3
FOR the purpose of requiring an insurer that issues, sells, or delivers private passenger 4
motor vehicle insurance policies in the State to disclose the use of certain telematics 5
systems a program that measures the operation of an insured vehicle and to 6
establish an appeals a process by which a policyholder may challenge correct or 7
appeal data the policyholder believes to be erroneous; requiring the Maryland 8
Insurance Administration to adopt regulations limiting the types and amounts of 9
data that may be collected through telematic systems a program that measures the 10
operation of an insured vehicle for use by a private passenger motor vehicle insurer; 11
prohibiting an insurer that issues, sells, or delivers private passenger motor vehicle 12
insurance policies in the State from using data obtained collected through telematics 13
systems a program that measures the operation of an insured vehicle to establish 14
certain premiums or to take certain actions with respect to a policy; prohibiting 15
insurers with respect to certain private passenger motor vehicle insurance policies 16
from initiating a premium increase in increments of less than a certain number of 17
months from the date the policy goes into effect; and generally relating to private 18
motor vehicle insurance and the use of telematics programs that measure the 19
operation of an insured vehicle. 20
BY repealing and reenacting, without amendments, 21
Article – Insurance 22
Section 12–106(b) 23
Annotated Code of Maryland 24 2 SENATE BILL 984
(2017 Replacement Volume and 2024 Supplement) 1
BY adding to 2
Article – Insurance 3
Section 12–307 and 19–521 and 27–908 4
Annotated Code of Maryland 5
(2017 Replacement Volume and 2024 Supplement) 6
BY repealing and reenacting, with amendments, 7
Article – Insurance 8
Section 27–501(t) 9
Annotated Code of Maryland 10
(2017 Replacement Volume and 2024 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Insurance 14
12–106. 15
(b) This section applies only to a binder or policy, other than a renewal policy, of 16
personal insurance, commercial property insurance, and commercial liability insurance. 17
12–307. 18
EXCEPT AS PROVIDED IN § 12–106 OF THIS TITLE, WITH RESPECT TO PRIV ATE 19
PASSENGER MOTOR VEHI CLE INSURANCE POLICI ES THAT MEASURE THE 20
OPERATION OF AN INSURED VEHICLE, AN INSURER MAY NOT I NITIATE A PREMIUM 21
INCREASE IN INCREMEN TS OF LESS THAN 6 MONTHS FROM THE DATE THE POLICY 22
GOES INTO EFFECT . 23
19–521. 24
(A) IN THIS SECTION , “TELEMATICS” MEANS A METHOD OF CO LLECTING 25
DATA RELATED TO ANY OF THE FOLLOWING DATA POINT S REGARDING A VEHICL E OR 26
DRIVER USING RECORDI NG SENSORS OR A TELE COMMUNICATIONS DEVIC E FOR 27
TRANSMITTAL OF THE D ATA, AND A SECURED SERVER TO STORE THE DATA : 28
(1) VEHICLE SPEED , LOCATION, MILEAGE, AND OPERATING HOURS ; 29
(2) DRIVER ACCELERATION , BRAKING, AND CORNERING HABITS ; 30
(3) ENGINE DIAGNOSTICS ; AND 31
SENATE BILL 984 3
(4) ANY OTHER DATA POINT RELATED TO THE USE A ND OPERATION 1
OF THE INSURED VEHIC LE THAT HAS BEEN FIL ED WITH AND APPROVED BY THE 2
COMMISSIONER . 3
(B) (A) (1) AN INSURER THAT ISSUES, SELLS, OR DELIVERS PRIVATE 4
PASSENGER MOTOR VEHI CLE INSURANCE POLICI ES IN THE STATE SHALL DISCLOSE 5
TO THE INSURED APPLICANT AT THE TIM E OF APPLICATION OR THE POLICYHOLDER 6
AT THE TIME OF RENEW AL ANY USE OF TELEMATICS TO OBTAIN DATA OF THE 7
INSURED’S DRIVING HABITS OR A PROGRAM THAT MEASU RES THE OPERATION OF AN 8
INSURED VEHICLE. 9
(2) THE DISCLOSURE REQUIR ED UNDER PARAGRAPH (1) OF THIS 10
SUBSECTION SHALL BE PROVIDED IN THE MANN ER SPECIFIED BY THE 11
ADMINISTRATION . 12
(B) AN INSURER THAT IMPLE MENTS THE U SE OF A PROGRAM THAT 13
MEASURES THE OPERATI ON OF AN INSURED VEH ICLE SHALL ESTABLISH A PROCESS 14
BY WHICH THE POLICYH OLDER MAY CORRECT OR APPEAL DATA COLLECTE D 15
THROUGH THE PROGRAM THAT THE POLICYHOLDE R BELIEVES IS ERRONE OUS. 16
(C) THE ADMINISTRATION SHALL ADOPT REGULATIONS TO LIMIT THE 17
TYPES AND AMOUNT OF DATA THAT MAY BE COL LECTED BY TELEMATICS SYSTEMS A 18
PROGRAM THAT MEASURE S THE OPERATION OF A N INSURED VEHICLE FOR USE BY 19
AN INSURER THAT ISSU ES, SELLS, OR DELIVERS PRIVATE PASSENGER MOTOR 20
VEHICLE INSURANCE PO LICIES IN THE STATE. 21
(D) THE ADMINISTRATION MAY RE QUIRE AN INSURER THA T USES A 22
TELEMATICS SYSTEM PROGRAM THAT MEASURE S THE OPERATION OF A N INSURED 23
VEHICLE TO PERIODICALLY ESTABLISH AND IMPLEM ENT A GOVERNANCE PLA N 24
THAT INCLUDES : 25
(1) AUDIT THE TELEMATICS SYSTEM TO ENSURE THA T IT COLLECTS, 26
PROCESSES, AND CALCULATES THE I MPACT OF DATA ON INS URER–WIDE PREMIUM 27
RATES IN A MANNER TH AT IS ACTUARIALLY SO UND AND FREE OF UNFA IR BIAS 28
MONITORING THE PROGR AM TO ENSURE THAT IT DOES NOT COLLECT OR PROCESS 29
DATA IN A MANNE R THAT IS UNFAIRLY D ISCRIMINATORY , IMPACTS PREMIUM RATE S 30
IN A MANNER THAT LAC KS ACTUARIAL JUSTIFI CATION, OR OTHERWISE VIOLATE S 31
THIS ARTICLE; 32
(2) CORRECTING OR MITIGA TING A FINDING THAT THE PROGRAM 33
COLLECTS OR PROCESSE S DATA IN A MANNER T HAT IS UNFAIRLY DISCRIMINATORY , 34
IMPACTS PREMIUM RATE S IN A MANNER THAT L ACKS ACTUARIAL JUSTI FICATION, 35
OR OTHERWISE VIOLATE S THIS ARTICLE; AND 36
4 SENATE BILL 984
(2) (3) SUBMIT A REPORT PERIODICALLY REPORTI NG TO THE 1
ADMINISTRATION SUMMARIZING ON: 2
(I) THE SCOPE , METHODOLOGIES , AND FINDINGS OF THE 3
AUDIT PROGRAM MONITORING I N ACCORDANCE WITH TH E GOVERNANCE PLAN ; AND 4
(II) ANY CORRECTIVE ACTIO N OR MITIGATION MEAS URE TAKEN 5
IN ACCORDANCE WITH T HE GOVERNANCE PLAN . 6
27–501. 7
(t) With respect to private passenger motor vehicle insurance, an insurer may 8
not: 9
(1) require an applicant or a policyholder to participate in a program that 10
measures the operation of an insured vehicle as a condition for underwriting a private 11
passenger motor vehicle insurance risk [unless the insurer: 12
(1) only offers private passenger motor vehicle insurance products that 13
require insureds to participate in a program that measures the operation of an insured 14
vehicle; 15
(2) discloses the information in item (1) of this subsection to: 16
(i) the applicant at the time of application; and 17
(ii) the policyholder at the time of renewal; and 18
(3) includes the information in item (1) of this subsection in any advertising 19
materials for the insurance products offered by the insurer]; OR 20
(2) USE DATA COLLECTED T HROUGH A PROGRAM THA T MEASURES 21
THE OPERATION OF AN INSURED VEHICLE TO C ANCEL, REFUSE TO RENEW , OR 22
REFUSE TO UNDERWRITE A PRIVATE PASSENGER AUTOMOBILE INSURANCE POLICY 23
RISK. 24
27–908. 25
(A) IN THIS SECTION, “TELEMATICS” HAS THE MEANING STATED I N § 19–521 26
OF THIS ARTICLE. 27
(B) AN INSURER THAT ISSUE S, SELLS, OR DELIVERS PRIVATE PASSENGER 28
MOTOR VEHICLE INSURA NCE POLICIES IN THE STATE MAY NOT USE DAT A OBTAINED 29
THROUGH TELEMATICS F ROM A SPECIFIC VEHIC LE, WHOLLY OR PARTLY : 30
SENATE BILL 984 5
(1) FOR ESTABLISHING AN INSURANCE PREMIUM FO R THE POLICY 1
THAT INSURES THAT VE HICLE; OR 2
(2) TO CANCEL, REFUSE TO RENEW , OR REFUSE TO UNDERWR ITE A 3
PRIVATE PASSENGER AU TOMOBILE INSURANCE P OLICY. 4
(C) AN INSURER THAT IMPLE MENTS THE USE OF A T ELEMATICS SYSTEM 5
SHALL ESTABLISH A PR OCESS BY WHICH THE P OLICYHOLDER MAY CORR ECT OR 6
APPEAL TELEMATICS DA TA THAT THE POLICYHO LDER BELIEVES IS ERR ONEOUS. 7
SECTION 2. AND BE IT FURTHER ENACTED, That the Maryland Insurance 8
Administration shall adopt the regulations required under § 19–521(c) of the Insurance 9
Article, as enacted by Section 1 of this Act, on or before December 31, 2025 July 1, 2026. 10
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
October 1, 2025. 12
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.