ANNAPOLIS -- The House of Delegates gave thumbs up yesterday to a plan to separate the Insurance Division from its department, create an anti-fraud bureau within it and exact some of the funding for the new agency from the industry it regulates.
But the legislation is unlikely to survive the Senate intact, some legislators say.
By a 124-2 vote, the delegates passed House Bill 1417 and sent it to the Senate, which is considering a similar version. Both bills were sponsored at the request of Gov. William Donald Schaefer.
The two bills would require all insurers based in Maryland to pay a surtax based on the dollar amount of insurance they sell in the state. The proceeds would go directly to the newly independent Maryland Insurance Administration, which would have a bureau to help detect and prosecute fraud committed against insurers.