The new coverage offering stems from House Bill 5/Senate Bill 403, which was passed this 437th legislative session.

This legislation creates an “enhanced” underinsured motorist coverage under which UIM coverage for an injured party would be added together or “stacked” with the available bodily injury insurance of the at-fault driver, instead of offset against it as is current law in Maryland. Thus, an insured will be able to collect the total limit of his own UIM coverage along with the torfeasor’s policy limits. This amendment provides that the new coverage would be mandatory, subject to a written waiver by the insured, consistent with the prior version of the statute.  

This legislation takes effect on October 1, 2017 and impacts new auto liability policies issued on and after July 1, 2018.