Insurance - Property and Casualty Insurance - Minimum Acceptable Loss Ratio and Premium Refunds

HB 1159 establishes a minimum 85% property and casualty insurance loss ratio requirement for insurers in Maryland. If an insurer's actual loss ratio falls below this threshold, they must refund policyholders a specific amount calculated by multiplying the insured's adjusted premium (after deducting taxes and fees) by the difference between 85% and their actual ratio. This bill directly affects all Maryland property and casualty insurance policyholders, requiring insurers to issue refunds when they fail to meet the 85% loss ratio standard. The law takes effect October 1, 2025.