SB 637 Maryland Senate · 2026 Regular Session

Maryland Automobile Insurance Fund - Fund Producer Commission Rate

SB 637 would remove a requirement that the Maryland Automobile Insurance Fund (MAIF) must pay insurance agents (fund producers) at least 10% commission on private passenger auto insurance policies. Currently, state law mandates this minimum rate, but the bill deletes that "not less than 10%" provision. After passage, MAIF could set commission rates below 10% for these policies, though it would still be capped at 15%. This directly affects insurance agents who sell MAIF policies, changing how they are compensated.

Bill status signed all 5 stages cleared

Introduction

Feb 2026

Committee Review

Apr 2026

Senate Passage

Apr 2026

House of Delegates Passage

Apr 2026

Signed into Law

May 2026

Introduced Feb 5, 2026 Signed May 26, 2026

Maddy AI version diff · 1 comparison

What changed between versions

First - Maryland Automobile Insurance Fund - Fund Producer Minimum Commission Rate - Repeal → Third - Maryland Automobile Insurance Fund - Fund Producer Commission Rate · 4 edits

MODERATE

This bill updates the Maryland Automobile Insurance Fund's commission rules by changing the language from 'repealing a minimum rate' to 'altering' the rate, allowing the Fund more flexibility in setting commission percentages. It also adds a new restriction prohibiting the Fund from paying commissions on policies written directly without a fund producer's involvement. The effective date remains October 1, 2026.

Scope change

The bill's scope expanded to include a new prohibition on direct commissions for policies written without a fund producer, whereas the previous version only focused on adjusting the minimum commission rate.

REQUIREMENT

Changed the legislative purpose from 'repealing' a minimum commission rate to 'altering' it, indicating a shift in how the Fund manages its commission obligations.

Added a new prohibition preventing the Fund from paying commissions to fund producers for policies written directly by the Fund without their involvement.

TECHNICAL

Added a new subsection (4) to the list of situations where the Fund may not pay a commission, specifically for policies written directly without a fund producer.

Added a signature block for the Governor, President of the Senate, and Speaker of the House of Delegates to the end of the bill text.

Floor votes · Senate Feb 27, 2026 · House of Delegates Mar 18, 2026

How they voted

47–0

Passed · 2 other

Total votes 49

Feb 27, 2026

D Democratic36

34 Yea 2

94% Yea

R Republican13

13 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 26, 2026

Signed into law

Approved by the Governor - Chapter 796

executive

Apr 6, 2026

Upper · Passed

Returned Passed

upper

Apr 3, 2026

Lower · Passed

Third Reading Passed

lower

Apr 2, 2026

Lower · Passed

Favorable Adopted Second Reading Passed

lower

Apr 2, 2026

Lower · Passed

Favorable Report by Judiciary

lower

Mar 18, 2026

House Of Delegates · Passed

House of Delegates Vote: pass (116-3-23)

house of delegates

Mar 13, 2026

Committee

Referred Judiciary

lower

Mar 12, 2026

Upper · Passed

Third Reading Passed

upper

Mar 10, 2026

Upper · Passed

Favorable with Amendments {

upper

Mar 9, 2026

Upper · Passed

Favorable with Amendments Report by Finance

upper

Feb 27, 2026

Senate · Passed

Senate Vote: pass (47-0-2)

senate

Feb 5, 2026

Committee

First Reading Finance

upper

1 primary · 0 co-sponsors