§ 10-128
673 words·~3 min read·
/md/insurance/10-128A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§10–128.
(a)This section does not apply to:
(1)reinsurance;
(2)life insurance, health insurance, or annuity contracts;
(3)insurance of:
(i)rolling stock, vessels, or aircraft of a common carrier used in interstate or foreign commerce;
(ii)a motor vehicle principally garaged and used outside the State; or
(iii)liability or other risks, incident to the ownership, maintenance, or operation of a subject of insurance under item
(i)or
(ii)of this item;
(4)insurance of property while transported in interstate or in foreign trade, or any liability or risk incident to the transportation;
(5)insurance of wet marine and transportation risks;
(6)bid bonds issued in connection with public or private contracts;
(7)policies or endorsements issued through:
(i)insurance producers compensated only by salary;
(ii)insurers not using insurance producers in the general solicitation of business;
(iii)mutual insurers or other insurers not customarily using insurance producers compensated by commission if no commission is payable to an insurance producer on the policy or endorsement; or
(iv)insurers or groups of insurers under common management or control that are represented exclusively by insurance producers who represent only the insurers or groups of insurers;
(8)reciprocal insurers; or
(9)insurance written through:
(i)the Maryland Automobile Insurance Fund; or
(ii)the Maryland Property Insurance Availability Program.
(b)This section does not alter the requirements of § 10-119 of this subtitle.
(1)Notwithstanding any other provision of law of this State or of policy forms, and subject to paragraph
(2)of this subsection, an insurance producer that is a resident of this State may not be required to sign or countersign a policy covering a subject of insurance resident, located, or to be performed in this State.
(2)A policy covering a subject of insurance resident, located, or to be performed in this State shall be signed or countersigned by an insurance producer that is a resident of this State if:
(i)the policy is written by an insurance producer that is a resident of another state and is qualified as a nonresident insurance producer in this State; and
(ii)the law of the other state requires a signature or countersignature by an insurance producer that is a resident of that state on a policy written by an insurance producer that is not a resident in that state.
(3)A policy is not invalid because it does not have the required signature or countersignature.
(1)A person may not sign or countersign a policy or endorsement subject to this section unless the person:
(i)is a licensed insurance producer;
(ii)is a resident of this State;
(iii)is compensated by commissions on policies subject to this section; and
(iv)is not an employee or officer of the insurer issuing the policy.
(2)This section does not prevent an insurance producer from:
(i)delegating the duty of signing or countersigning to employees of the insurance producer that are not also employees of lending institutions; or
(ii)directing the payment of commissions on policies subject to this section to a corporation or partnership insurance agency or otherwise.
(e)An insurance producer may not countersign a policy or endorsement unless the policy or endorsement states, as applicable:
(1)the rates or premiums;
(2)a description of the property insured; and
(3)the name and address of the insured.
(f)If the law of another state requires an insurance producer that is a resident of that state to keep part of the commission paid on a policy written, countersigned, or delivered by the insurance producer in that state on request of a nonresident insurance producer of that state, an insurance producer that is a resident of this State and that signs or countersigns a policy written by an insurance producer that is a resident of the other state and qualified as a nonresident insurance producer in this State covering a subject of insurance resident, located, or to be performed in this State shall keep an equal pro rata part of any commission on the policy.