Notice of Title Fee Increases

Bulletin 11-18 Date: August 17, 2011 To: All Property & Casualty Insurers Re: Code of Maryland Regulations: Title Fee Increases Change Effective July 1, 2011 This Bulletin is to advise Property and Casualty insurers that effective July 1, 2011, the Maryland Motor Vehicle Administration ("MVA") increased the amount charged for a title fee from $50.00 to $100.00. This increase in the title fee will result in a greater cost when declaring a vehicle a total loss. Please consult the following page on the MVA's website for further information concerning this increase at http://www.mva.maryland.gov/2011-legislation.htm. 200 St. Paul Place, Suite 2700 Baltimore, Maryland 21202 Direct Dial: 410-468-2029 Fax: 410-468-2430 Email: jhatchette@mdinsurance.state.md.us 1-800-492-6116 TTY: 1-800-735-2258 MARTIN O’MALLEY Governor ANTHONY G. BROWN Lt. Governor THERESE M. GOLDSMITH Commissioner BETH SAMMIS KAREN STAKEM HORNIG Deputy Commissioners Code of Maryland Regulations ("COMAR") 31.15.12.04 A.(2) and 31.15.12.04 B.(2) require that the applicable taxes and transfer fees pursuant to COMAR 11.11.05, which include the title fee, be included as part of a total loss settlement offer for a claim involving a private passenger motor vehicle. These regulations require that Property and Casualty insurers include applicable taxes and transfer fees in a settlement offer regardless of whether or not the claimant retains salvage rights. In light of the increase in the title fee, please ensure that you have updated your method of calculating a vehicle’s value and that you are compensating claimants/policyholders in accordance with Maryland Law. Please also refer to COMAR 11.11.05 for the most current list of applicable taxes and transfer fees. If you have any questions regarding this Bulletin, please contact Joy Hatchette, Associate Commissioner, Consumer Education and Advocacy by telephone at (410) 468-2029 or by e-mail at jhatchette@mdinsurance.state.md.us. Therese M. Goldsmith Commissioner By: SIGNATURE ON ORIGINAL Joy Hatchette, Associate Commissioner Consumer Education & Advocacy