MD SB95

Establishes a regulatory framework for parametric insurance in Maryland, which pays predetermined benefits when specified trigger events (earthquakes, high winds, hurricanes, floods) occur, regardless of actual loss

Requires insurers to provide written disclosures to policyholders including coverage summaries, a one-page fact sheet explaining basis risk (the risk that payment won't match actual loss), trigger event methodology, and benefit timelines

Mandates insurers file all rates, policy forms, and underwriting standards with the Insurance Commissioner at least 60 days before implementation, including verification protocols and educational materials on basis risk

Authorizes the Commissioner to establish a pilot program for parametric insurance products targeting low-income households (≤50% area median income), moderate-income households (≤80% area median income), small businesses, and public entities

Requires annual reporting by insurers to the Commissioner by December 1 and annual reports to the General Assembly beginning in 2027; effective date July 1, 2026, with regulations due by January 1, 2027