On April 12, 2024, the Maryland Insurance Administration (MIA) issued Bulletin 24-8 to all insurers authorized to issue motor vehicle insurance in Maryland requiring uninsured/underinsured (UI/UIM) coverage for diminution of value damages.
The bulletin states the following:
- Diminution of value, as a category of damages, is covered under the UMPD provisions of a policy of motor vehicle insurance issued in the state;
- An insurer may not exclude, alter, or specifically limit coverage for diminution of value damages under UMPD coverage;
- Language in any UMPD policy form that purports to exclude, alter, or specifically limit coverage for diminution of value damages under UMPD coverage is unenforceable and diminution of value claims submitted under UMPD coverage must be evaluated and when proven, paid to the same extent that diminution of value claims are evaluated and paid under mandatory property damage liability insurance, subject to the policyholder’s
UM/UIM limits; and
- Any motor vehicle insurers that have filed, issued, or delivered in-force policy forms that exclude diminution of value damages as a possible component of UM coverage should file revised forms within 90 days from the release of the bulletin.
For more information, please see Bulletin 24-8. Any questions regarding the bulletin should be directed to Property and Casualty Associate Commissioner, William Fawcett, at 410-468-2353 or William.Fawcett@Maryland.gov.
Links:
Bulletin 24-8