2017 Maryland Legislative, Regulatory Outlook for Property-Casualty Insurers

WASHINGTON, Jan. 24 -- The American Insurance Association issued the following news release:

The American Insurance Association (AIA) issued the following legislative and regulatory outlook for property-casualty insurers in Maryland. With the start of the state's 2017 legislative session, AIA staff is available to help reporters recap and break down important policy issues.

A statement from Eric Goldberg, AIA's vice president, Mid-Atlantic region, follows:

"In 2017, we'll be working with the Maryland Insurance Administration (MIA) to promote regulatory modernization of commercial lines forms and rates. In short, we would like to eliminate policy form and rate filing requirements for certain specialty lines of commercial insurance, those typically purchased by sophisticated businesses. Under Commissioner Redmer's leadership, the MIA has implemented numerous regulatory and process changes aimed at making Maryland more competitive, which ultimately benefits consumers. We believe that implementing these modest commercial lines regulatory modernization measures would even further improve Maryland's regulatory climate in a way that effectively promotes open, private insurance markets, and focuses regulatory attention on protecting consumers and overseeing financial solvency of insurers.

During Maryland's 2017 legislative session, AIA will vigorously defend against the trial bar's attempts to lower the standard for punitive damages. In Maryland, punitive damages are reserved for situations where the defendant acted intentionally or with 'actual malice.' The Maryland Court of Appeals established this high level of culpability 25 years ago because it was concerned with the proliferation of punitive damages claims and the extraordinary size of these awards. Lowering this standard will likely complicate settlements and litigation, and negatively impact costs, but will not serve as any further deterrent to the conduct in question.

AIA will also work to build upon its successes from last year's session. Key among them was the passage of HB 437, which enhanced the state's prescription drug monitor program (PMDP). PMDPs have proven effective in helping states to combat the nationwide opioid epidemic, and they are crucial in preventing the overuse of opioids by injured workers. AIA's efforts this year will be to work with the Department of Health and Mental Hygiene and other stakeholders to further strengthen the state's PDMP program. We view this necessary step to help bring this epidemic under control."

Celebrating its 150th year in 2016, The American Insurance Association (AIA) is the leading property-casualty insurance trade organization, representing approximately 320 insurers that write more than $125 billion in premiums each year. AIA member companies offer all types of property - casualty insurance, including personal and commercial auto insurance, commercial property and liability coverage, specialty, workers' compensation, homeowners' insurance, medical malpractice coverage, and product liability insurance.

[Category: Insurance]

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