DATE: October 21, 2026
TO: Property and Casualty Insurers
RE: Mandatory Statutory Vehicle Liability Coverage and Insurer Obligations upon Cancellation or Termination of Liability Coverage
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The purpose of this bulletin is to remind all property and casualty insurers of the statutory requirements governing motor vehicle policies under Maryland law, specifically regarding minimum mandatory liability coverages and consumer notifications upon the cancellation or suspension of coverage.
Mandatory Minimum Insurance Requirements
Pursuant to § 19-504 of the Insurance Article, every motor vehicle liability insurance policy issued, sold, or delivered in the State of Maryland must provide at least the minimum security required by Title 17 of the Transportation Article. Insurers are prohibited from issuing policies with coverage limits that do not provide these mandatory minimum amounts. A vehicle that is not covered by a policy that provides the required minimum liability coverage may not be registered or operated on the public roads of the State.
Obligation upon Request to Suspend Coverage
The Administration has become aware of instances when, due to certain circumstances, insureds have requested a temporary cancellation of vehicle liability coverage while maintaining comprehensive coverage. These circumstances, include, among others,
Military deployment;
Seasonal vehicle use;
Extended travel periods.
While insurers may accommodate an insured's request to cancel liability coverage, once the vehicle lacks the minimum liability coverages, the insurer must adhere to the following consumer protection and reporting requirements:
Consumer Notification
Prior to processing any request to cancel liability coverage on a registered vehicle, the insurer shall inform the insured in writing of the following legal obligations and consequences:
The vehicle's registration plates must be returned to the Motor Vehicle Administration (“MVA"). Failure to return the registration plates may result in an uninsured motorist penalty fine. Failure to surrender registration plates may result in suspension of current and future registration privileges. See COMAR 11.18.04.03.
The written record must be retained by the insurer and open for inspection by the Administration.
Mandatory MVA Reporting
Immediately following the cancellation of liability coverage on any registered vehicle, the insurer is required to remove the vehicle policy from the weekly book of business file it sends to the MVA, as required by MVA insurance verification procedures. See, COMAR 11.18.04.03
Please direct any questions regarding this bulletin to Mary Kwei, Associate Commissioner, Market Regulation and Professional Licensing.
Marie Grant
Commissioner
By:
Mary M. Kwei
Associate Commissioner
Market Regulation and Professional Licensing
