Thursday, February 28, 2008

COUNTY EXECUTIVE SUPPORTS HOUSE BILL 32

COUNTY EXECUTIVE ANNOUNCES SUPPORT OF HOUSE BILL 32

UPPER MARLBORO, MD - Prince George's County Executive Jack Johnson today announced his support for House Bill 32, the Maryland Automobile Insurance Fund (MAIF). If passed, the bill will allow Maryland residents who use MAIF to pay their premiums in monthly or quarterly installments instead of having to pay annual premiums.

"The current requirements are just plain wrong and they do not make any sense," Johnson said. "We are one of the wealthiest states in the country and this fund has excess funds and we can do this, so I am supporting House Bill 32."

The bill is being sponsored by Prince George's County Delegate Marvin Holmes and a corresponding Senate Bill, 603, is being sponsored by Baltimore City Senator Catherine Pugh. Holmes said he has introduced this bill three out of the six years he has been in the state legislature and it is time it finally gets passed.

"The time has come and this is the right thing to do," Holmes said. "MAIF customers should be able to pay their premiums in installments."

Founded in 1972, the requirement that all premiums be paid annually was put in place because of a need for capitalization for MAIF. Now that this is no longer necessary, Johnson and legislators say it is only fair that MAIF customers be allowed to pay in installments.

Currently, there are 23,650 county residents using MAIF. Approximately 95 percent of all MAIF customers finance their payments through premium finance companies and where they are forced to pay high interest rates.

No comments:

Post a Comment