(a) Subject to the authority of the Commissioner to determine whether rates are excessive, inadequate, or unfairly discriminatory, as provided in Title 11, Subtitle 2 or Subtitle 3 of this article, the Executive Director shall determine the premiums to be charged on policies issued by the Fund.
(b) (1) Except as provided in subsections (c) and (d) of this section, the provisions of Title 11, Subtitle 3 of this article apply to the determination of premiums by the Executive Director and the filing of rates with the Commissioner.
(2) Notwithstanding Title 11, Subtitle 2 or Subtitle 3 of this article or any other provision of this title, the Executive Director may base premiums on one or both of the following items:
(i) the number of points accumulated by an insured or applicant for insurance under the point system provided for in Title 16, Subtitle 4 of the Transportation Article; or
(ii) the prior claims experience of an insured or applicant for insurance.
(c) The provisions of Title 11, Subtitle 2 of this article apply to the determination of premiums by the Executive Director and the filing of rates with the Commissioner:
(1) between July 1, 2025, and December 31, 2025, both inclusive; and
(2) beginning January 1, 2026, if the Fund’s total adjusted capital is less than the amount required under § 20–306(c) of this title.
(d) (1) Premiums for all commercial coverage shall be determined in accordance with this section and § 20–508 of this subtitle.
(2) Notwithstanding paragraph (1) of this subsection, the rating principles under subsection (e) of this section may not be used to determine the premium for commercial coverage.
(e) In reviewing rates filed by the Fund, the Commissioner shall consider not only the rating principles under Title 11, Subtitle 2 or Subtitle 3 of this article but also the statutory purpose of the Fund under § 20–301 of this title.
(f) (1) The Motor Vehicle Administration and Executive Director may arrange for the Motor Vehicle Administration to collect premiums on policies issued by the Fund when the Motor Vehicle Administration issues a driver’s license or certificate of registration.
(2) A premium collected under this subsection shall be paid to the State Treasurer for the account of the Fund.
(g) (1) The Fund may not provide directly or indirectly for the financing of premiums.
(2) A premium may be financed only by a premium finance company registered with the Commissioner in accordance with § 23–201 of this article.
(3) If a prospective insured’s initial payment to the Fund, a fund producer, or premium finance company is not honored, a policy or endorsement issued in reliance on that payment is void.
(h) (1) (i) Subject to the approval of the Commissioner and in accordance with this subsection, the Fund may accept premiums on an installment payment basis.
(ii) In approving the Fund’s plan for accepting premiums on an installment payment basis, the Commissioner shall:
1. consider as factors:
A. the percentage of the initial premium payment in comparison to the total premium under the policy;
B. the number of installment premium payments accepted on a policy under the installment payment plan; and
C. the overall affordability of the installment payment plan in comparison to other payment options available to the policyholder; and
2. ensure that the Fund’s installment payment plan
meets the requirements of § 27–216 of this article.
(2) The Fund may not discriminate among insureds by charging different premiums to insureds who select, as a payment option, the Fund’s installment payment plan instead of a premium finance agreement.
(3) In determining commissions paid to a fund producer, the Fund may not consider whether the fund producer placed an insured in an installment payment plan.
(4) (i) In accordance with this paragraph, written and electronic communications, including the Fund’s website, affecting the placement of coverage by the Fund or a fund producer shall include a statement, on a form approved by the Commissioner, advising an applicant or an insured of the payment options available to the applicant or insured.
(ii) The statement shall state that the applicant or insured has the following payment options:
1. the Fund’s installment payment plan;
2. a premium finance agreement; or
3. payment of the policy in full.
(iii) The statement shall be included on written or electronic communications at the time the applicant or insured:
1. is issued a new policy; or
2. is issued a reissuance, rewrite, or renewal of an existing policy.
(iv) The statement shall state that the applicant or insured should consult a fund producer who will fully describe the terms of each payment option.
(i) (1) If the Fund makes a change to its plan for accepting premiums on an installment payment basis, within 90 days after the change, the Commissioner shall submit a report to the General Assembly providing the reason for the change.
(2) The report required under paragraph (1) of this subsection shall:
(i) include the effect the change will have on the required factors for consideration under subsection (h)(1)(ii)1 of this section; and
(ii) be submitted in accordance with § 2–1257 of the State Government Article.