One of the top legislative priorities for insurers in Maryland this year is to modernize commercial lines forms and rates, according to the American Insurance Association (AIA) outlook for Maryland insurers.
Specifically, AIA would like to eliminate policy form and rate filing requirements for certain specialty lines of commercial insurance.
“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,” Eric Goldberg, AIA’s vice president, Mid-Atlantic region, said last week.
AIA will also defend against 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,” Goldberg said.
AIA argues that lowering the standard will not be a deterrent for bad conduct and will only complicate settlements and impact costs.
AIA will also work to strengthen the state’s prescription drug monitor program (PMDP). Last year, AIA championed the passage of HB 437, which enhanced the state’s PMDP to combat the overuse of opioids by injured workers. This year, AIA will work with the Department of Health and Mental Hygiene and other stakeholders to further strengthen the program.