§ 8-449
278 words·~1 min read·
/md/insurance/8-449A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§8–449.
(a)Except as otherwise provided in this section, a person must obtain a license issued under Title 10, Subtitle 1 of this article before the person acts as an insurance producer for a fraternal benefit society.
(b)Subsection
(a)of this section does not apply to a regular salaried officer or employee of a licensed society who:
(1)devotes substantially all of the officer’s or employee’s services to activities other than soliciting insurance contracts; and
(2)does not receive, for soliciting insurance contracts, a commission or other compensation that is directly dependent on the amount of business obtained.
(1)Subsection
(a)of this section does not apply to a fraternal benefit insurance producer or representative of a society that devotes, or intends to devote, less than 50% of the person’s time to selling, soliciting and negotiating insurance contracts for the society.
(2)For the purposes of paragraph
(1)of this subsection, a person is presumed to be devoting, or intending to devote, 50% or more of the person’s time to selling, soliciting or negotiating insurance contracts for a society if, in the preceding calendar year, the person has sold, solicited and negotiated:
(i)life insurance contracts that, in the aggregate, exceed $200,000 of coverage for all lives insured for the preceding calendar year;
(ii)a permanent life insurance contract offering more than $10,000 of coverage on an individual life;
(iii)a term life insurance contract offering more than $50,000 of coverage on an individual life;
(iv)any insurance contracts other than life that the society may write that insure the lives of more than 25 individuals; or
(v)any variable life insurance or variable annuity contract.