Maryland Insurance Code: Core Laws for Licensed Producers

Maryland's insurance legal framework is built on the Maryland Code, Insurance Article — a comprehensive statute administered by the dedicated Maryland Insurance Administration (MIA). What makes Maryland's framework most distinctive is the combination of contributory negligence (shared with Virginia; any fault = complete bar), mandatory UM that cannot be waived, EUIM that stacks on top of liability, waivable PIP despite being an at-fault state, and the prohibition on using credit history in underwriting for both auto and homeowners insurance. Add Maryland Health Connection (state ACA exchange), the Maryland LTC tax credit, a workers' compensation private market with Chesapeake Employers Insurance, and the MIA as a dedicated insurance-only regulator with recently increased civil penalties — and Maryland's insurance legal landscape is among the most consumer-protection-oriented in the comparison states while maintaining a vibrant professional insurance market.

Maryland Insurance Legal Framework

MIA Commissioner Authority

MIA contacts:

200 St. Paul Place, Suite 2700, Baltimore, MD 21202

(410) 468-2411 or (800) 492-6116; [email protected]; insurance.maryland.gov

Commissioner: Marie L. Grant (confirmed April 2025)

Commissioner authority under Maryland Insurance Article:

License, suspend, revoke producers and insurers

Market conduct examinations

Investigate unfair practices under Title 27

Issue cease and desist orders

Impose civil penalties (up to $5,000/violation for producers; increased Oct 1, 2024)

Rate and form review (File and Use system — insurers may implement rates immediately upon filing)

Producer Licensing (Maryland Insurance Article)

PLE: NOT required (eliminated Oct 1, 2024; Bulletin 24-19)

Prometric exam: $60; 70%; 6-month score validity; 4-day retake wait

No fingerprinting; ITIN accepted; $54 NIPR application

Processing: 7-10 business days; apply within 6 months

Temporary Life license: 15 months

Renewal: 2 years; last day birth month; $69; 90-day window; 1-year late renewal ($169)

CE: 24 hours (3 Ethics; line-specific; no carryover); Prometric CE platform

Appointments: Not reported to MIA except terminations for cause

License grounds for action:

Misrepresentation in application or statements to MIA

Violation of Maryland Insurance Article

Misappropriation of premium funds

Incompetence or untrustworthiness

Prior license action in any state

Fraud or unfair trade practice

Maryland Unfair Trade Practices (Title 27)

Named practices — all tested:

Misrepresentation, twisting, churning, rebating, defamation, unfair discrimination, unfair claims settlement

Key 2024 update: Civil penalties for licensed producers increased from $500 to $5,000 per violation effective October 1, 2024.

Maryland Auto Insurance Laws

Maryland is an at-fault state — Transportation Code § 17-103.

30/60/15 liability minimums:

$30,000 bodily injury per person

$60,000 bodily injury per accident

$15,000 property damage per accident

Contributory negligence — the most tested Maryland P&C law: Maryland follows traditional contributory negligence — any fault by the plaintiff (even 1%) completely bars recovery from the defendant. This is:

Shared with Virginia among comparison states

Tested on both Maryland's own exam and as a Virginia comparison point in Virginia's exam

Creates specific advisory implications for Maryland P&C producers regarding UM/UIM limits

UM/UIM:

UM: Required; matches liability limits (30/60/15); CANNOT be waived

UIM: Must be offered; can be reduced below liability limits in writing

EUIM (Enhanced Underinsured Motorist Coverage — Md. Ins. § 19-509.1):

Stacks on top of at-fault driver's liability (does not offset)

Example: $30,000 at-fault liability + $100,000 EUIM = potentially $130,000 total recovery

Standard UIM: $100,000 - $30,000 = only $70,000 recovery

Must be offered; policyholders opt out in writing

PIP:

Minimum: $2,500

Can be waived in writing (unusual for an at-fault state)

Must be offered on all Maryland auto policies

Credit history prohibition:

Auto insurance underwriting: prohibited (Md. Ins. § 27-501)

Credit scoring for rating: allowed (COMAR 31.15.11.09)

Homeowners underwriting, rating, AND payment plans: all prohibited (COMAR 31.15.11.04)

Electronic verification system: Maryland monitors auto insurance compliance electronically. Gaps trigger Notice of Non-Compliance requiring response within 30 days; non-response results in registration suspension.

MAIF (Maryland Automobile Insurance Fund): Assigned risk pool; also competes on voluntary market.

Maryland Workers' Compensation

Coverage threshold: 1+ employee (full-time or part-time)

Exemptions: Sole proprietors, partners, independent contractors; agricultural employers with fewer than 3 employees or annual payroll under $15,000; LLC members with >20% interest may exempt themselves.

Private market with Chesapeake Employers Insurance:

Chesapeake Employers = state fund AND assigned risk pool; competes on voluntary market

Not a monopoly (unlike Ohio BWC)

Maryland is an NCCI state; Chesapeake uses some deviating classifications

Self-insurance available with MIA approval

Non-compliance penalties: up to $25,000 (plus misdemeanor charges with fines up to $10,000 or prison; late payment triggers 20-40% additional penalties)

Administered by: Maryland Workers' Compensation Commission — separate from MIA.

Maryland Health Insurance

Maryland Health Connection: State-based ACA exchange; marylandhealthconnection.gov; Maryland Health Benefit Exchange (MHBE); Md. Code, Insurance §§ 31-102-31-207.

255,612 enrolled for 2026 (up 3%; record). 5 insurers (Aetna exited). MD state Premium Assistance expanded to all ages at 400% FPL. 13.4% average rate increase for 2026 (before subsidies). Reinsurance waiver through December 2028.

Maryland Medicaid (expanded): Adults up to 138% FPL.

No MD individual mandate: Maryland does not have a state tax penalty for being uninsured.

Required health benefits: Elderly, Alzheimer's, mental illness, prescriptions, IVF, pregnancy disability, breast cancer screenings, hospice (Md. Code, Insurance § 15-300 et seq.)

LTC tax credit: Maryland provides state income tax credit for qualifying LTC insurance premiums — specifically in exam content outline.

5 Frequently Asked Questions

• What are Maryland's contributory negligence and how does it affect advisory? Maryland uses traditional contributory negligence — a plaintiff with any fault at all (even 1%) recovers nothing from the defendant. This makes adequate UM/UIM coverage and EUIM particularly important for Maryland auto clients. If a Maryland client has any shared fault in an accident, their own UM/UIM and EUIM become their primary recovery mechanisms. Advisory for Maryland clients should always address UM/UIM at meaningful limits, not just minimums.
• What is EUIM and why is it specifically tested? Enhanced Underinsured Motorist Coverage (Md. Ins. § 19-509.1) stacks on top of the at-fault driver's liability rather than offsetting it. Standard UIM pays only the excess over the at-fault driver's coverage. EUIM adds to whatever the liability coverage pays — potentially providing much greater compensation in serious accidents. Producers must offer EUIM; clients can opt out in writing. This is a specifically Maryland provision directly in the Insurance Article.
• Why does Maryland's credit history prohibition matter for producers? Maryland prohibits credit history for auto insurance underwriting entirely (eligibility decisions) and for homeowners insurance for all purposes (underwriting, rating, and payment plans). Producers who are aware of these prohibitions can accurately advise clients that their credit history should not be used to deny coverage or set rates in these contexts (though credit scoring for auto rating is still allowed under a different standard). The prohibition is also relevant for E&O protection — facilitating prohibited discriminatory underwriting creates regulatory liability for producers.
• What is the Maryland File and Use rate system? Maryland's rate filing system allows insurers to implement rates immediately upon filing with MIA, without prior approval ("file and use"). This differs from "prior approval" states (like NJ for many lines) where MIA must approve rates before implementation. File and Use creates a faster market response to rate changes — relevant for advisors helping commercial clients understand rate dynamics.
• Does Maryland have any LTC Partnership program? Yes — Maryland's LTC Partnership program protects assets from Maryland Medicaid spend-down requirements dollar-for-dollar when Partnership-qualified LTC policies pay benefits. Combined with Maryland's state income tax credit for LTC premiums, Maryland's LTC framework is one of the more consumer-supportive among comparison states for LTC planning.

Build Your Career on Strong Maryland Compliance Knowledge

The Maryland Insurance Article, contributory negligence, EUIM, credit history prohibitions, and Maryland Health Connection form the foundation of Maryland insurance practice. JustInsurance's MIA-approved Maryland courses cover the Insurance Code in depth.

Enroll today and build your Maryland insurance career on solid compliance ground.