Ch. 91

2004 LAWS OF MARYLAND

FOR the purpose of repealing a provision that terminates, as of a certain date, a
provision that authorizes an insurer that rates a new private passenger motor
vehicle insurance policy based on the credit history of the applicant to provide a
certain discount or impose a certain surcharge under certain circumstances;
requiring the Maryland Insurance Administration to submit a certain report;
and generally relating to the use of credit history in rating private passenger
motor vehicle insurance policies.

BY repealing and reenacting, without amendments,
Article - Insurance
Section 27-501(e-2)(5)
Annotated Code of Maryland
(2002 Replacement Volume and 2003 Supplement)

BY repealing and reenacting, with amendments,

Chapter 580 of the Acts of the General Assembly of 2002
Section 5

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Insurance

27-501.

(e-2) (5) With respect to private passenger motor vehicle insurance, an insurer
that rates a new policy based, in whole or in part, on the credit history of the
applicant may, if actuarially justified, provide a discount of up to 40% or impose a
surcharge of up to 40%.

Chapter 580 of the Acts of 2002

SECTION 5. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall
take effect October 1, 2002. [Section 2 of this Act shall remain effective for a period of
2 years and, at the end of September 30, 2004, with no further action required by the
General Assembly, Section 2 of this Act shall be abrogated and of no further force and
effect.]

SECTION 2. AND BE IT FURTHER ENACTED, That the Maryland Insurance
Administration shall report to the Senate Finance Committee and House Economic
Matters Committee on or before December 1, 2004, in accordance with § 2-1246 of the
State Government Article, on the status and findings of the study in which Maryland
has joined with 14 other member states of the National Association of Insurance
Commissioners on whether credit scoring has a disparate impact on minority and
low-income individuals.

SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take
effect October July 1, 2004.

Approved April 27, 2004.

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