Changes in Vehicle Usage Due to COVID-19 Pandemic

BULLETIN 21-01

Date: January 4, 2021

To:

All Insurance Producers and Property and Casualty Insurers Writing

Private Passenger Automobile Insurance

Re:

Changes in Vehicle Usage Due to COVID-19 Pandemic

______________________________________________________________________

On March 5, 2020, Governor Larry Hogan issued a Proclamation declaring a

State of Emergency and that a Catastrophic Health Emergency exists in the State of

Maryland. The Proclamation was renewed on May 6, 2020, June 3, 2020, July 1, 2020,

July 31, 2020, August 10, 2020, September 8, 2020, October 6, 2020, October 30,

2020, November 25, 2020 and December 23, 2020. The pandemic has adversely

affected the lives and livelihoods of Maryland residents in numerous ways. Accordingly,

the Maryland Insurance Administration (“Insurance Administration”) seeks the full

cooperation of all insurance producers and Property and Casualty insurers writing

private passenger automobile insurance with the following issue.

Driving habits, both in terms of vehicle usage and the number of annual miles

being driven, have changed for many Marylanders as a result of the pandemic. Many

insurers utilize one or both of these driving characteristics as factors in the rating of

private passenger automobile insurance policies to determine the premium charged.

The purpose of this Bulletin is to remind and urge all insurance producers, as well as

any direct writer of private passenger automobile insurance, of the need to initiate

contact with their policyholders to determine if they have experienced a change in their

vehicle usage and / or annual miles driven as a result of the pandemic.

Where usage and / or mileage has changed that impacts the policy’s rating, the

appropriate adjustment in rating should be made promptly

as well as

any direct writer of private passenger automobile insurance, of the need to initiate

contact with their policyholders to determine if they have experienced a change in their

vehicle usage and / or annual miles driven as a result of the pandemic.

Where usage and / or mileage has changed that impacts the policy’s rating, the

appropriate adjustment in rating should be made promptly. The Insurance

Administration encourages insurers to provide refunds / credits for reduced mileage

retroactively to the onset of the reduction in miles being driven to the greatest extent

possible.

KATHLEEN A. BIRRANE

Commissioner

JAY COON

Deputy Commissioner

ERICA J. BAILEY

Associate Commissioner

Compliance & Enforcement

LARRY HOGAN

Governor

BOYD K. RUTHERFORD

Lt. Governor

200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202

1-800-492-6116 TTY: 1-800-735-2258

www.insurance maryland.gov

As always, the Insurance Administration appreciates the cooperation of our

licensees in these challenging times. Should you have any questions concerning this

Bulletin, please contact Jason Decker, Chief Market Conduct Examiner P&C, at

Jason.Decker@Maryland.gov or Erica J. Bailey, Associate Commissioner for

Compliance and Enforcement at Erica.Bailey@Maryland.gov or at (410) 468-2113.

KATHLEEN A. BIRRANE

Commissioner

By:

Erica J. Bailey

Associate Commissioner

Compliance and Enforcement

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