# Insurance (GIN) ## Title 10. Regulation of Insurance Professions ### Subtitle 1. Insurance Producers #### Section 10-101 (a) In this subtitle the following words have the meanings indicated. (b) "Authorized representative" means an independent contractor of a travel retailer. (c) "Business entity" means a corporation, professional association, partnership, limited liability company, limited liability partnership, or other legal entity. (d) "Home state" means any state in which an insurance producer: (1) maintains the insurance producer's principal place of residence or principal place of business; and (2) is licensed to act as a resident insurance producer. (e) (1) "License" means a document issued by the Commissioner to act as an insurance producer for the kind or subdivision of insurance or combination of kinds or subdivisions of insurance specified in the document. (2) "License" includes a limited lines license. (f) "Limited line credit insurance" includes: (1) credit life insurance; (2) credit health insurance; (3) credit property insurance; (4) credit unemployment insurance; (5) credit involuntary unemployment benefit insurance; (6) mortgage life insurance; (7) mortgage guaranty insurance; (8) mortgage disability insurance; (9) guaranteed automobile protection (GAP) insurance; and (10) any other form of insurance that: (i) is offered in connection with an extension of credit; (ii) is limited to partially or wholly extinguishing that credit obligation; and (iii) the Commissioner determines should be designated a form of limited line credit insurance. (g) "Limited line credit insurance producer" means a person who sells, solicits, or negotiates one or more forms of limited line credit insurance coverage to individuals through a master, corporate, group, or individual policy. (h) "Limited lines insurance" means: (1) limited line credit insurance; (2) the lines of insurance described in Sec.Sec. 10-122 through 10-125 of this subtitle; (3) insurance sold in connection with, and incidental to, the rental of a motor vehicle under Subtitle 6 of this title; or (4) any other line of insurance that the Commissioner considers necessary to recognize for the purpose of complying with Sec. 10-119(d) of this subtitle. (i) "Limited lines insurance producer" means a person authorized by the Commissioner to sell, solicit, or negotiate limited lines insurance. (j) "Limited lines travel insurance producer" means, with respect to travel insurance: (1) a licensed managing general agent; or (2) a licensed insurance producer, including a limited lines insurance producer. (k) "Offer and disseminate" means, with respect to limited lines travel insurance, to: (1) provide general information, including a description of coverage and price; (2) process applications; and (3) collect premiums. (l) (1) "Title insurance producer" means a person that, for compensation, solicits, procures, or negotiates title insurance contracts. (2) "Title insurance producer" includes a person that provides escrow, closing, or settlement services that may result in the issuance of a title insurance contract. (3) "Title insurance producer" does not include: (i) individuals employed and used by title insurance producers for the performance of clerical and similar office duties; (ii) a financial institution as defined in Sec. 1-101(j) of the Financial Institutions Article that does not solicit, procure, or negotiate title insurance contracts for compensation; or (iii) a title insurance insurer that is licensed under this article. (m) "Title insurance producer independent contractor" means a person that: (1) is licensed to act as a title insurance producer; (2) provides escrow, closing, or settlement services that may result in the issuance of a title insurance contract as an independent contractor for, or on behalf of, a licensed and appointed title insurance producer; and (3) is not an employee of the licensed and appointed title insurance producer. (n) "Trade name" means a name, symbol, or word, or combination of two or more of these that a person uses to: (1) identify its business, occupation, or self in a business capacity; and (2) be distinguished from another business, occupation, or person. (o) (1) "Travel insurance" means insurance coverage for personal risk incident to planned travel, including: (i) interruption or cancellation of a trip or an event; (ii) loss of baggage or personal effects; (iii) damage to accommodations or a rental vehicle; (iv) sickness, accident, disability, or death occurring during travel, if issued as incidental to the coverage provided by item (i), (ii), (iii), (v), (vi), or (vii) of this paragraph; (v) emergency evacuation; (vi) repatriation of remains; and (vii) any other contractual obligations to indemnify or pay a specified amount to the traveler on determinable contingencies related to travel as the Commissioner approves. (2) "Travel insurance" does not include a major medical plan that provides comprehensive medical protection for a traveler on a trip lasting 6 months or longer, such as an individual working outside the United States or uniformed services personnel being deployed. (p) "Travel retailer" means a business entity that makes, arranges, or offers travel services. (q) "Uniform application" means the current version of the NAIC uniform application for resident and nonresident insurance producer licensing. (r) "Uniform business entity application" means the current version of the NAIC uniform business entity application for resident and nonresident business entities. #### Section 10-102 (a) This subtitle applies to insurance producers, all kinds of insurance and annuities, and all types of insurers, including: (1) nonprofit health service plans; (2) dental plan organizations; (3) health maintenance organizations; and (4) fraternal benefit societies. (b) This subtitle does not apply to: (1) reinsurance; (2) except as provided in Sec.Sec. 10-116(c) and 10-119 of this subtitle, surplus lines transactions, which are subject to Title 3, Subtitle 3 of this article; (3) a person while employed by an insured to administer or help to administer the insurance or risk management program of the person's employer, if the person is not authorized to accept any compensation from an insurance producer or insurer; or (4) a licensed insurance adviser while employed under contract by an insured and acting for the insured, if the insurance adviser is not authorized to accept any compensation from an insurance producer or insurer. #### Section 10-103 (a) In this section, the term "insurer" does not include an insurer's officers, directors, employees, subsidiaries, or affiliates. (b) The licensing requirements of this section do not apply to: (1) an insurer; (2) an officer, director, or employee of an insurer or of an insurance producer who does not receive any commission on policies written or sold to insure risks residing, located or to be performed in the State if: (i) the activities of the officer, director, or employee are executive, administrative, managerial, clerical, or a combination of these, and are only indirectly related to the sale, solicitation, or negotiation of insurance; (ii) the function of the officer, director, or employee relates to underwriting, loss control, inspection, or the processing, adjusting, investigating, or settling of a claim on a contract of insurance; or (iii) the officer, director, or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers where the individual's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation, or negotiation of insurance; (3) an individual who performs administrative services related to mass marketed property and casualty insurance, provided that no commission is paid to the individual for the services; (4) an employer, association, the officers, directors, and employees of an employer or association, or the trustees of an employee trust plan if: (i) the employer, association, officers, directors, and employees, or trustees are engaged in the administration or operation of a program of employee benefits for the employer's or association's own employees or the employees of its subsidiaries or affiliates; (ii) the program involves the use of insurance issued by an insurer; and (iii) the employer, association, officers, directors, and employees, or trustees are not in any manner compensated, directly or indirectly, by the insurer issuing the contracts; (5) an employee of an insurer or organization employed by an insurer who is: (i) engaged in the inspection, rating, or classification of risks or in the supervision of the training of insurance producers; and (ii) not individually engaged in the sale, solicitation, or negotiation of insurance; (6) a person whose activities in the State are limited to advertising without the intent to solicit insurance in the State through communications in printed publications or other forms of electronic mass media if: (i) the distribution of the printed publications or other forms of electronic mass media is not limited to residents of the State; and (ii) the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in the State; (7) a person who is not a resident of the State who sells, solicits, or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under the contract if: (i) the person is otherwise licensed as an insurance producer to sell, solicit, or negotiate that insurance in the state where the insured maintains its principal place of business; and (ii) the contract insures risks located in that state; or (8) a salaried, full-time employee who counsels or advises the employee's employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer, provided that the employee does not sell or solicit insurance or receive a commission. (c) Except as otherwise provided in this article or Sec.Sec. 10-14A-03 and 10-14B-03 of the State Government Article, before a person acts as an insurance producer in the State, the person must obtain: (1) a license in the kind or subdivision of insurance for which the person intends to act as an insurance producer; and (2) if acting for an insurer, an appointment from the insurer. (d) (1) Except as otherwise provided in this subsection, an insurance producer may not sell, solicit, or negotiate any insurance on behalf of an insurer for which the insurance producer does not have an appointment. (2) Without an appointment, an insurance producer may: (i) submit to an insurer an informal inquiry for any kind of life insurance, health insurance, or annuity for which the insurance producer has a license if the insurer has a certificate of authority for the kind of insurance about which the inquiry is made; and (ii) solicit an application for any kind of life insurance, health insurance, or annuity for which the insurance producer has a license if the insurer to which the application is submitted has a certificate of authority for the kind of insurance requested in the application. (e) Before a business entity may accept in its own name compensation for acting as an insurance producer in the State, the business entity must obtain: (1) a license in the kind or subdivision of insurance for which the business entity intends to act as an insurance producer; and (2) an appointment for the kind or subdivision of insurance for which it intends to act as an insurance producer on behalf of an insurer. #### Section 10-104 (a) This section applies to: (1) a license to act as an insurance producer for insurance other than life insurance, health insurance, or annuities; (2) a limited lines license to act as an insurance producer for limited line credit insurance other than credit life insurance or credit health insurance; and (3) a limited lines license to act as an insurance producer for a line of insurance described in Sec.Sec. 10-122 through 10-125 of this subtitle. (b) To qualify for a license to which this section applies, an individual applicant must meet the requirements of this section. (c) An applicant must be of good character and trustworthy based on the standards of Sec. 10-126 of this subtitle. (d) An applicant must be at least 18 years of age. (e) An applicant may not have committed any act that the Commissioner finds would warrant denial of a license under Sec. 10-126 of this subtitle. (f) (1) In the case of an applicant for a limited lines license to act as an insurance producer for limited line credit insurance, the applicant shall complete successfully a program of instruction that is: (i) provided by an insurer that sells, solicits, or negotiates limited line credit insurance; and (ii) designed to provide a comprehensive and accurate explanation of the product. (2) (i) The insurer that provides the program of instruction shall retain records relating to the program of instruction while in use and for a period of at least 5 years after its last use. (ii) The records shall include: (1) copies of the instructional materials; and (2) a list of the applicants and producers who have successfully completed the program of instruction. (iii) The insurer shall make available to the Commissioner the records relating to the program of instruction at the request of the Commissioner. (g) Except as otherwise provided in this section, the applicant must pass an examination given by the Commissioner under this subtitle. (h) An applicant for a limited lines license to act as an insurance producer for limited line credit insurance need not meet the examination requirements of subsection (g) of this section. (i) An applicant may be licensed as to any particular kind or kinds of insurance. #### Section 10-105 (a) To qualify for a license as an insurance producer for life insurance, health insurance, annuities, nonprofit health service plans, dental plan organizations, health maintenance organizations, or fraternal benefit societies an individual applicant must meet the requirements of this section. (b) An applicant must be of good character and trustworthy based on the standards of Sec. 10-126 of this subtitle. (c) An applicant must be at least 18 years of age. (d) An applicant may not have committed any act that the Commissioner finds would warrant denial of a license under Sec. 10-126 of this subtitle. (e) (1) In the case of an applicant for a limited lines license to act as an insurance producer for credit life insurance or credit health insurance, the applicant shall successfully complete a program of instruction that is: (i) provided by an insurer that sells, solicits, or negotiates limited line credit insurance; and (ii) designed to provide a comprehensive and accurate explanation of the product. (2) (i) The insurer that provides the program of instruction shall retain records relating to the program of instruction while in use and for a period of at least 5 years after its last use. (ii) The records shall include: (1) copies of the instructional materials; and (2) a list of the applicants and producers who have successfully completed the program of instruction. (iii) The insurer shall make the records relating to the program of instruction available to the Commissioner at the request of the Commissioner. (f) Before taking a written examination, an applicant shall pay the application fee required under Sec. 2-112(a)(6)(vi) of this article. (g) (1) Except as otherwise provided in this subsection, the applicant must pass an examination given by the Commissioner under this subtitle. (2) The following applicants are not required to take an examination: (i) an applicant for a license to act as an insurance producer only for selling credit life insurance or credit accident and health insurance or both to a borrower of money or buyer of goods in connection with a loan or credit transaction; (ii) an applicant for a license to act as an insurance producer for a dental plan organization if the applicant for compensation solicited, procured, or negotiated contracts for dental plan organizations continuously from July 1, 1988, to June 30, 1989; (iii) an applicant for a license to act as an insurance producer for a nonprofit health service plan if the applicant for compensation solicited, procured, or negotiated contracts for nonprofit health service plans continuously from July 1, 1988, to June 30, 1989; or (iv) an applicant for a license to act as an insurance producer for a health maintenance organization if the applicant for compensation solicited, procured, or negotiated contracts for health maintenance organizations continuously from July 1, 1988, to June 30, 1989. (h) An applicant may be licensed as to any particular kind or kinds of insurance. #### Section 10-106 (a) This section does not apply to a motor vehicle rental company that applies for a limited lines license to sell insurance in connection with, and incidental to, the rental of a motor vehicle under Subtitle 6 of this title. (b) To qualify for a license as an insurance producer, a business entity must designate a licensed insurance producer to act as the business entity's principal contact with the Administration. (c) The designated insurance producer shall: (1) provide to the Administration at the time of designation the insurance producer's name, business address, business telephone number, business facsimile number, and business electronic mail address; (2) notify the Insurance Administration in writing of any change in the information required by item (1) of this subsection within 10 days after the change; (3) compile and maintain, to the extent reasonably possible, a list of locations where records of the business entity are maintained; and (4) on request, cooperate with any investigation conducted by the Administration unless the cooperation is subject to a legal privilege asserted by the designated insurance producer or the business entity. #### Section 10-107 (a) An individual applicant may not be required to take an examination that relates to any kind of insurance other than as requested by the applicant. (b) If an individual applicant requests, the examination shall be administered to allow the applicant to be tested in more than one kind of insurance in one day. (c) An individual applicant for an examination specified in this subtitle or Subtitle 2 or Subtitle 4 of this title shall pay the fee required under this article in the manner specified by the Commissioner. #### Section 10-108 (a) An individual applicant who otherwise qualifies for a license for insurance other than life insurance, health insurance, or annuities is entitled to be examined as provided in this section. (b) To determine the competence of an individual applicant as to the kind or subdivision of insurance for which the applicant wants to become licensed, the applicant shall pass a written examination that relates to that kind or subdivision of insurance. (c) The Commissioner shall adopt reasonable regulations that specify: (1) the scope, type, conduct, and grading of the written examinations; and (2) the frequency, times, and locations within the State where the written examinations will be held. (d) Before taking a written examination, an individual applicant shall pay the application fee required under Sec. 2-112(a)(6)(vi) of this article. (e) All written examinations shall be graded within 30 days following the date of the examination. (f) An individual applicant who fails an examination may not take another examination until at least 4 days after the date of the last examination that the applicant failed. #### Section 10-109 (a) An individual applicant who otherwise qualifies for a license for life insurance, health insurance, annuities, nonprofit health service plans, dental plan organizations, or health maintenance organizations is entitled to be examined as provided in this section. (b) (1) Each individual applicant must pass a personal written examination to determine: (i) the competence of the applicant as to life insurance, health insurance, or annuities or to any subdivision of them, including contracts for nonprofit health service plans, vision plans, dental plan organizations, and health maintenance organizations; and (ii) the familiarity of the applicant with the applicable laws of the State. (2) Each examination must be graded within 30 days after the date of the examination. (c) An individual applicant who fails an examination may not take another examination until at least 4 days after the date of the last examination that the applicant failed. (d) The Commissioner shall adopt reasonable regulations that specify: (1) the scope, type, conduct, and grading of the written examinations; and (2) the frequency, times, and places in the State where the written examinations will be held. #### Section 10-110 (a) The Commissioner may appoint an advisory board for life and health insurance and an advisory board for property and casualty insurance to assist the Commissioner in reviewing continuing education courses, examinations, and other matters relating to the education and qualification of insurance producers. (b) (1) If the Commissioner appoints a life and health insurance advisory board, the life and health insurance advisory board shall consist of at least eight members. (2) Each member of the advisory board shall be experienced in the business of life insurance or health insurance. (3) The advisory board: (i) may include insurance producers and employees or officers of insurers; and (ii) shall include at least two members who are insurance producers with valid licenses issued in the State in that kind of insurance. (c) (1) If the Commissioner appoints a property and casualty insurance advisory board, the property and casualty insurance advisory board shall consist of at least eight members. (2) Each member of the advisory board shall be experienced in the business of property insurance or casualty insurance. (3) The advisory board: (i) may include insurance producers and employees or officers of insurers; and (ii) shall include at least two members who are insurance producers with valid licenses issued in the State in that kind of insurance. (d) (1) The term of a member of an advisory board under this section is 4 years. (2) A member who is appointed after a term has begun serves only for the rest of the term. (3) A member is eligible for reappointment. (4) The Commissioner may stagger the terms of members of each advisory board under this section. (e) A member of an advisory board under this section: (1) may not receive compensation; but (2) if authorized by the Commissioner, is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. (f) The Commissioner may adopt regulations to carry out this section. #### Section 10-111 (a) A person who applies for a license as a resident insurance producer shall: (1) in the case of an applicant who is an individual, submit to the Commissioner a uniform application and declare under penalty of refusal, suspension, or revocation of the license that the statements made in the uniform application are true, correct, and complete to the best of the individual's knowledge and belief; (2) in the case of an applicant that is a business entity, submit to the Commissioner a uniform business entity application; (3) pay the applicable fee required by Sec. 2-112 of this article for a license; (4) file on the form and in the manner that the Commissioner provides: (i) any trade name to be used by the applicant; (ii) the business address of the applicant; and (iii) the name and residence address of each individual who holds a license and does business under the trade name; and (5) submit to the Commissioner any additional information or documentation that the Commissioner requires, including any information or documentation to determine the professional competence, good character, and trustworthiness of the applicant. (b) (1) This subsection does not apply to a motor vehicle rental company that applies for a limited lines license to sell insurance in connection with, and incidental to, the rental of a motor vehicle under Subtitle 6 of this title. (2) In addition to any other information required on the application, an applicant that is a business entity must: (i) identify the licensed insurance producer who is designated to act as the business entity's principal contact with the Administration; and (ii) provide the name and address of each licensed producer employed by the business entity, each individual who has direct control over its fiscal management, and each owner, member, or manager of the business entity and each director of a business entity that is a corporation. #### Section 10-112 (a) (1) The Commissioner shall issue a license in a kind or subdivision of insurance or a combination of kinds or subdivisions of insurance to each applicant who meets the requirements of this subtitle. (2) An applicant may qualify for a license in one or more of the following kinds of insurance: (i) life insurance; (ii) accident and health or sickness insurance; (iii) property insurance; (iv) casualty insurance; (v) variable life and variable annuity products; (vi) personal lines of property and casualty insurance; (vii) limited line credit insurance; and (viii) any other kind or subdivision of insurance permitted under State law or regulations. (b) A license shall contain: (1) the licensee's name, address, and personal identification number; (2) the date of issuance; (3) the kind or subdivision of insurance or combination of kinds or subdivisions of insurance for which the licensee is authorized to act as an insurance producer; (4) the expiration date; and (5) any other information that the Commissioner considers necessary. (c) (1) To help the Department of Assessments and Taxation in identifying new businesses in the State, by August 31 of each year the Commissioner shall provide to the Department of Assessments and Taxation a list of insurance producers that were issued licenses during the previous fiscal year. (2) The list shall include: (i) the name and mailing address of each person issued a license; and (ii) the federal tax identification number of each person or, if the person does not have a federal tax identification number, the Social Security number of the person. (3) The Commissioner shall provide the list free of charge. #### Section 10-113 (a) A license authorizes the holder of the license to act as an insurance producer for the kind or subdivision of insurance or combination of kinds or subdivisions of insurance specified in the license. (b) The holder of a license may not use any name other than the name in which the license is issued or a trade name filed with the Commissioner under this subtitle to engage in any activity for which a license is required, including the execution of any document related to marketing, negotiation, selling, or issuance of insurance. (c) A license does not create any actual, apparent, or inherent authority in the holder to represent or commit an insurer. #### Section 10-114 Insurance producers may conduct insurance business as a business entity if each individual who solicits, negotiates, or accepts insurance business from the public holds a license in the kind or subdivision of insurance for which the individual acts as an insurance producer and, if applicable, an appointment from an insurer. #### Section 10-115 (a) (1) Licenses expire every other year on the date stated on the license unless renewed as provided in this section. (2) If a license expires under paragraph (1) of this subsection, the appointments held by the insurance producer shall be terminated as of the day of the expiration of the license. (b) At least 1 month before a license expires, the Commissioner shall send to the holder of the license, at the last known address or electronic mail address of the holder on record a notice that states: (1) the process for renewing the license; (2) the date by which the Commissioner must receive the renewal application; and (3) the amount of the renewal fee. (c) Subject to subsection (g) of this section, before a license expires, the holder of the license may renew it for an additional 2-year term, if the holder: (1) otherwise is entitled to a license; (2) files with the Commissioner a renewal application: (i) on the form that the Commissioner provides; or (ii) in an electronic format that the Commissioner approves; (3) completes the continuing education requirements established under Sec. 10-116 of this subtitle; and (4) pays to the Commissioner the renewal fee required by Sec. 2-112 of this article. (d) A license renewed under this section shall have an expiration date that is the last day of the month in which the holder of the license was born. (e) (1) If mailed, an application for renewal of a license shall be considered made in a timely manner if it is postmarked on or before the expiration date of the license. (2) If submitted electronically, an application for renewal of a license shall be considered made in a timely manner if, on or before the expiration date of the license, the application: (i) is addressed properly or otherwise directed properly to an information processing system that the Administration has designated or uses for the purpose of receiving electronic applications and from which the Administration is able to retrieve the application; (ii) is in a form capable of being processed by that system; and (iii) (1) enters an information processing system outside the control of the sender or of a person that sent the electronic application on behalf of the sender; or (2) enters a region of the information processing system designated or used by the Administration that is under the control of the Administration or an agent of the Administration. (f) (1) The Commissioner shall renew the license of each holder who meets the requirements of this section. (2) If the holder of a license complies with subsections (b) and (c) of this section before the license expires, the license remains in effect until the decision of the Commissioner regarding the application for renewal is final. (g) (1) A license is considered renewed for purposes of this subsection if the license is issued to a person for the period immediately following a period for which the person previously possessed the same or a substantially similar license. (2) Before a license may be renewed under this section, the Commissioner shall verify through the Office of the Comptroller that the applicant has paid all undisputed taxes and unemployment insurance contributions payable to the Comptroller or the Secretary of Labor or that the applicant has provided for payment in a manner satisfactory to the unit responsible for collection. (h) The Commissioner may adopt regulations to: (1) carry out this section; and (2) develop a staggered system of renewals for licenses of insurance producers. #### Section 10-116 (a) (1) Subject to subsections (b) and (c) of this section, the Commissioner shall require an insurance producer to receive continuing education as a condition of renewing the license of the insurance producer. (2) An insurance producer shall complete the continuing education required under paragraph (1) of this subsection not later than 15 days before the expiration date of the insurance producer's license. (3) (i) The Commissioner may not require an individual who holds a license to receive more than 24 hours of continuing education per renewal period. (ii) If the individual holds a title insurance producer license, the Commissioner may not require the insurance producer to receive more than 16 hours of continuing education per renewal period. (iii) If an insurance producer has held a license for 25 or more consecutive years as of October 1, 2008, the Commissioner may not require the insurance producer to receive more than 8 hours of continuing education per renewal period. (iv) The Commissioner may not require an insurance producer to receive more than 16 hours of continuing education in a renewal period if the insurance producer is also a licensed funeral director or licensed mortician who: (1) sells only life insurance policies or annuity contracts that fund a pre-need contract as defined in Sec. 7-101 of the Health Occupations Article; and (2) is not a viatical settlement broker as defined in Sec. 8-601 of this article. (v) Of the required hours of continuing education per renewal period required under subparagraphs (i), (ii), (iii), and (iv) of this paragraph, at least 3 hours shall relate directly to ethics. (4) Subject to paragraph (5) of this subsection, an insurance producer may satisfy the continuing education requirements of this subsection by submitting to the Commissioner or Commissioner's designee: (i) proof that the insurance producer has completed the required hours of continuing education for the applicable renewal period; or (ii) proof that the insurance producer has completed at least 8 hours of continuing education for the applicable renewal period and an affidavit that, over the previous 25 consecutive years, the insurance producer continually: (1) has held a license in the State; and (2) has been employed in the selling of insurance in the State. (5) (i) To increase the level of education of insurance producers, an insurance producer shall obtain continuing education in the kind or subdivision of insurance for which the insurance producer has received a license. (ii) Each insurance producer who possesses a license to sell health insurance and who sells long-term care insurance shall receive continuing education that directly relates to long-term care insurance. (iii) Each insurance producer who possesses a license to sell property and casualty insurance and who sells flood insurance shall receive continuing education that directly relates to flood insurance. (iv) Each insurance producer who possesses a license to sell property and casualty insurance and who sells, solicits, or negotiates bail bonds shall receive continuing education that directly relates to bail bond insurance. (v) Each insurance producer who possesses a license to sell health insurance and who markets the Senior Prescription Drug Assistance Program or assists a Medicare beneficiary to enroll in the Senior Prescription Drug Assistance Program shall receive continuing education that directly relates to the Senior Prescription Drug Assistance Program. (6) If continuing education is required, the Commissioner may grant a waiver to an insurance producer who has requested a waiver for reasons that the Commissioner determines warrant the waiver. (7) An insurer may not prohibit one of its insurance producers from obtaining continuing education credits from any course approved by the Commissioner. (b) The following individuals are exempt from the continuing education requirements under this section: (1) employees of a health maintenance organization who are employed solely to solicit membership in the health maintenance organization under a contract between the health maintenance organization and the Maryland Department of Health; (2) attorneys at law of the State who are qualified as title insurance producers and who do not hold a license in any other kind or subdivision of insurance; (3) individuals who hold only a limited lines license to act as an insurance producer for limited line credit insurance; and (4) insurance producers who hold only a limited lines license in any type of insurance designated by the Commissioner. (c) A nonresident licensee shall be deemed to have met the continuing education requirements of this section if: (1) the nonresident licensee satisfies the continuing education requirements of the home state of the nonresident licensee; and (2) the home state of the nonresident licensee allows an insurance producer who is a resident of this State to satisfy the continuing education requirements of the home state on the same basis by meeting the continuing education requirements of this State. (d) (1) The Commissioner may review all continuing education courses submitted and approve or disapprove courses. (2) The Commissioner may not disapprove a continuing education course solely on the basis of the methodology or technology used to deliver instruction to individuals taking the course. (d-1) (1) An insurance producer may obtain all or part of the credit hours of continuing education required for renewal of a license under this section from correspondence courses or online courses approved by the Commissioner. (2) This subsection applies to all insurance producers who are required to receive continuing education as a condition of license renewal under this section, regardless of the kind or subdivision of insurance for which the insurance producer has received a license. (e) (1) The Commissioner shall adopt regulations to carry out this section. (2) The regulations adopted by the Commissioner under paragraph (1) of this subsection shall require providers of continuing education to submit evidence of course completion to the Commissioner or the Commissioner's designee within 10 days after completing a course of continuing education. (f) This section does not limit the authority of the Commissioner to review, approve, or disapprove continuing education courses, examinations, and other matters relating to the education and qualification of insurance producers. #### Section 10-116.1 (a) For up to 1 year after the expiration date, a person whose license has expired may reinstate the expired license by: (1) filing with the Commissioner the appropriate reinstatement application; (2) paying to the Commissioner: (i) the applicable renewal fee under Sec. 2-112 of this article; and (ii) a reinstatement fee of $100; and (3) submitting proof of completion of the continuing education requirements in Sec. 10-116 of this subtitle. (b) A person whose license has expired is prohibited from conducting any insurance business until the effective date of reinstatement of the license. (c) (1) If a person applies for reinstatement of an expired license within 60 days after the license expired, the Commissioner shall reinstate the license retroactively, with the reinstatement effective on the date that the person's license expired. (2) If a person applies for reinstatement of an expired license more than 60 days after the license expired, the Commissioner shall reinstate the person's license prospectively, with the reinstatement effective on the date that the license is reinstated. (d) A person who does not comply with subsection (a) of this section on or before 1 year after the expiration date shall apply for a license under Sec. 10-111 of this subtitle and meet the requirements specified by the Commissioner in regulation. (e) The Commissioner may adopt regulations to carry out this section. (f) The Commissioner may waive the reinstatement procedures of this section for an insurance producer who is unable to comply with the renewal and reinstatement procedures due to: (1) service in the uniformed services; or (2) other extenuating circumstances, including a long-term medical disability. #### Section 10-117 (a) To change, add to, or delete from a license, the insurance producer shall file with the Commissioner in the form that the Commissioner requires the change or addition to or deletion from the license. (b) (1) A licensee shall file with the Commissioner by any means acceptable to the Commissioner a change in legal name, trade name, electronic mail address, or address within 30 days of the change. (2) If a licensee fails to timely file with the Commissioner a change in legal name, trade name, electronic mail address, or address, the licensee is in violation of Sec. 10-126(a)(1) of this subtitle. #### Section 10-118 (a) In this section, "producer register" means a register of appointed insurance producers who are authorized to sell, solicit, or negotiate contracts of insurance on behalf of an insurer. (b) (1) An insurer authorized to transact the business of insurance in the State shall maintain a producer register. (2) Within 30 days of the insurer appointing an insurance producer, the insurer shall include the following information in the insurer's producer register: (i) the insurance producer's name; (ii) the license number assigned to the insurance producer by the Commissioner; (iii) the date that the insurer appointed the insurance producer; and (iv) any additional information that the Commissioner may require. (3) An insurer shall send written documentation of the appointment to the insurance producer. (c) A licensed insurance producer that has been appointed by an insurer shall maintain: (1) documentation of the insurer's appointment; and (2) a list of the insurers that have appointed the producer. (d) (1) The insurer's producer register and the producer's record relating to an appointment: (i) shall be open to inspection and examination by the Commissioner; and (ii) may be maintained electronically. (2) Except as provided in paragraph (3) of this subsection, an insurance producer may not act on behalf of an insurer unless the insurance producer has received written documentation of the appointment from the insurer. (3) An insurer may initially accept an application for life insurance, health insurance, or an annuity from an insurance producer who is not appointed by the insurer and is not on the insurer's producer register if, within 30 days of accepting the application, the insurer: (i) rejects the application in accordance with Sec. 27-501 of this article; or (ii) appoints the insurance producer and enters in the insurer's producer register the information required by subsection (b) of this section. (e) (1) (i) When there is any termination of the appointment, employment, contract, or other insurance business relationship with an insurance producer, the insurer shall, within 30 days following the effective date of the termination, update the insurer's producer register by entering the effective date of the termination. (ii) An insurer or authorized representative of an insurer shall notify the Commissioner of the termination of an appointment when the termination, in whole or in part, is a result of the belief that the producer has engaged or is engaging in any of the activities set forth in Sec. 10-126 of this subtitle, including any finding made by a court, governmental unit, or self-regulatory organization authorized by law that: (1) the insurance producer has violated Sec. 10-126 of this subtitle; or (2) the insurance producer has engaged in any activities that are set forth in Sec. 10-126 of this subtitle. (iii) On written request of the Commissioner, the insurer shall provide additional information, documents, records, or other data pertaining to: (1) the termination; or (2) the activities of the insurance producer if the insurance producer was terminated for cause due to a reason set forth in Sec. 10-126 of this subtitle. (2) If the appointment of an insurance producer is terminated because the insurance producer failed to renew the insurance producer's license and the license is reinstated under Sec. 10-116.1(c)(1) of this subtitle, an insurer may reappoint the insurance producer retroactively, with the appointment effective on the date that the license expired. (f) An insurer or authorized representative of an insurer promptly shall notify the Commissioner, in a format acceptable to the Commissioner, of any additional information that: (1) the insurer discovers on further review or investigation; and (2) would have been reportable to the Commissioner under subsection (e) of this section if the insurer had then known of its existence. (g) (1) Within 15 days after providing notice to the Commissioner that is required by subsection (e) of this section, an insurer shall mail a copy of the notice to the insurance producer: (i) at the last known address of the insurance producer; and (ii) by certified mail, return receipt requested, postage prepaid or by overnight delivery using a nationally recognized carrier. (2) Within 30 days after an insurance producer receives original or additional notice, the insurance producer may file with the Commissioner written comments concerning the substance of the notice. (3) If an insurance producer files comments with the Commissioner, the insurance producer shall, by the same means, simultaneously send a copy of the comments to the reporting insurer. (4) If the Commissioner receives comments from an insurance producer, the Commissioner shall: (i) make the comments part of the Commissioner's file on the subject; and (ii) include a copy of the comments with every copy of a report about the insurance producer that is distributed or disclosed for any reason permitted by subsection (i) of this section. (h) (1) This subsection applies to: (i) an insurer; (ii) an authorized representative of an insurer; (iii) an insurance producer; (iv) the Commissioner; and (v) an organization of which the Commissioner is a member that compiles information required under this section and makes it available to other insurance commissioners or regulatory or law enforcement agencies. (2) In the absence of actual malice, a person to whom this subsection applies and the agents and employees of the person are not subject to civil liability of any nature as a result of: (i) any statement or information required by or provided under this section; or (ii) any information relating to any statement that may be requested in writing by the Commissioner from an insurer or insurance producer. (3) If a party brings an action against a person that may have immunity under paragraph (2) of this subsection for making a statement required by or under this section or providing any information relating to any statement that may be requested by the Commissioner, the party bringing the action shall plead specifically in any allegation that paragraph (2) of this subsection does not apply because the person making the statement or providing the information did so with actual malice. (4) This subsection does not abrogate or modify any existing statutory or common law privileges or immunities. (i) (1) This subsection applies only to any document, material, or other information in the control or possession of the Insurance Administration that is: (i) furnished by an insurer or insurance producer or an employee or agent acting on behalf of the insurer or insurance producer under this section; or (ii) otherwise obtained by the Commissioner in an investigation under this section. (2) Any document, material, or other information that is subject to this subsection is: (i) confidential and privileged; (ii) not subject to Title 4 of the General Provisions Article; (iii) not subject to subpoena; and (iv) not subject to discovery or admissible in evidence in any private civil action. (3) Notwithstanding paragraph (2) of this subsection, the Commissioner may use any document, material, or other information that is subject to this section to further any regulatory or legal action brought as part of the duties of the Commissioner. (4) The Commissioner and any person who received any document, material, or other information to which this subsection applies while acting under the authority of the Commissioner may not be allowed or required to testify in any private civil action concerning the document, material, or information. (5) (i) Provided that the recipient agrees to maintain any confidentiality and privileged status, the Commissioner may share a document, material, or other information, including a document, material, or other information that is confidential and privileged under this subsection, with: (1) other State, federal, or international regulatory agencies; (2) the National Association of Insurance Commissioners and its affiliates or subsidiaries; or (3) State, federal, or international law enforcement authorities. (ii) If the Commissioner determines that a confidential document, material, or other information that has been shared through a database or other electronic filing system is inaccurate or incomplete in any way, the Commissioner shall update the information in the database or other electronic filing system so that the information is accurate and complete. (6) (i) The Commissioner may receive a document, material, or information, including a document, material, or information that is otherwise confidential and privileged, from: (1) the National Association of Insurance Commissioners or its affiliates or subsidiaries; or (2) regulatory and law enforcement officials of other foreign or domestic jurisdictions. (ii) The Commissioner shall maintain as confidential and privileged any document, material, or information received under this paragraph with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information. (7) The Commissioner may enter into agreements governing sharing and use of information consistent with this subsection. (8) There is no waiver of any applicable privilege or claim of confidentiality in a document, material, or information as a result of: (i) disclosure of the document, material, or information to the Commissioner under this section; or (ii) sharing of the document, material, or information by the Commissioner under paragraph (5) of this subsection. (9) This subtitle does not prohibit the Commissioner from releasing final adjudicated actions, including for-cause terminations, that are open to public inspection under Title 10, Subtitle 6 of the State Government Article, to a database or other clearinghouse service maintained by the National Association of Insurance Commissioners or its affiliates or subsidiaries. (j) The Commissioner may adopt regulations to carry out this section. #### Section 10-119 (a) Except as otherwise provided in this section, the Commissioner shall waive any license application requirements for an applicant who is not a resident of this State if: (1) the applicant has a valid license from the home state of the applicant; and (2) the home state of the applicant awards nonresident licenses to residents of this State on the same basis. (b) (1) Subject to paragraph (2) of this subsection and unless denied a license under Sec. 10-126 of this subtitle, a person that is not a resident of this State may obtain a nonresident license to act as an insurance producer if: (i) the person currently is licensed as a resident insurance producer and in good standing in the person's home state; (ii) the person has submitted or transmitted to the Commissioner the application for licensure that the person submitted to the person's home state or a completed uniform application; (iii) the person has paid the applicable fee under Sec. 2-112 of this article; and (iv) the person's home state awards nonresident insurance producer licenses to residents of this State on the same basis. (2) An individual who applies for an insurance producer license in this State who was previously licensed for the same lines of authority in another state need not comply with the examination requirements of Sec.Sec. 10-104, 10-105, and 10-107 through 10-109 of this subtitle if: (i) the person currently is licensed as an insurance producer in the home state of the person; (ii) the application is received by the Commissioner within 90 days after the cancellation of the applicant's previous license and the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state; or (iii) the state's producer database records, maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries, indicate that the producer is or was licensed in good standing for the line of authority requested. (c) In order to maintain a nonresident license in the State, a person must be: (1) currently licensed as a resident insurance producer in the person's home state; and (2) in good standing in the person's home state. (d) The Commissioner may verify the licensing status of a nonresident insurance producer through the producer database maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries. (e) Notwithstanding any other provision of this subtitle, a person licensed as a limited line credit insurance producer or other type of limited lines insurance producer in the person's home state is entitled to receive a nonresident limited lines insurance producer license under subsection (b) of this section granting the same scope of authority as granted under the license issued by the person's home state. (f) (1) Notwithstanding any other provision of this subtitle, a person licensed as a surplus lines broker in the person's home state is entitled to receive a nonresident certificate of qualification as a surplus lines broker under subsection (b) of this section. (2) Except for subsection (b) of this section, nothing in this section supersedes any provision of Title 3, Subtitle 3 of this article. (g) (1) A nonresident insurance producer who moves from one state to another state or a resident producer who moves from this State to another state shall: (i) file with the Commissioner a change of address; and (ii) provide to the Commissioner certification from the new resident state within 30 days after the change of legal residence. (2) The Commissioner may not charge a fee or require a license application following a change of legal residence. (h) (1) A person licensed as an insurance producer in another state who moves to this State shall apply to become licensed as a resident insurance producer under Sec. 10-111 of this subtitle within 90 days after establishing legal residence in this State. (2) If the person applies to become licensed as a resident insurance producer within 90 days after establishing legal residence in the State, the person need not comply with the examination requirements of Sec.Sec. 10-104, 10-105, and 10-107 through 10-109 of this subtitle to obtain a license for any line of authority that the person previously held in the prior state, except where the Commissioner determines otherwise by regulation. (i) The Commissioner may cancel the license of a nonresident insurance producer after receiving notice that the person is no longer licensed in the person's home state. #### Section 10-120 (a) Without regard to the examination requirements of this subtitle, the Commissioner may issue a temporary license to act as an insurance producer to an individual if the individual: (1) is otherwise qualified; and (2) is: (i) the surviving spouse, next of kin, personal representative, or appointee of the personal representative, of a deceased insurance producer; (ii) the spouse, next of kin, employee, or legal guardian of a mentally or physically disabled insurance producer; or (iii) an employee of a firm, or an officer or employee of a corporation, of a deceased or disabled insurance producer. (b) Before a person acts as a temporary insurance producer in the State, the person must obtain: (1) a temporary license in the kind or subdivision of insurance for which the person intends to act as an insurance producer; and (2) if applicable, an appointment from an insurer. (c) An applicant for a temporary license shall: (1) file with the Commissioner an application on the form that the Commissioner provides; and (2) pay to the Commissioner the applicable fee required by Sec. 2-112 of this article. (d) Within 30 days after the date an application is received, the Commissioner shall: (1) issue a temporary license to the applicant; or (2) refuse in writing to issue a temporary license, stating the reasons for the refusal. (e) A temporary license issued under subsection (a) of this section expires 15 months after its effective date. #### Section 10-121 (a) (1) In this section the following words have the meanings indicated. (2) "Controlling person" means an individual who exercises day-to-day direct control over the operation of a title agency doing business in the State, irrespective of whether the person is an officer, a manager, or an owner. (3) "Entity authorization" means a resolution or consent document executed in accordance with the formalities and governing provisions of the particular business entity and verified under oath. (4) "Owner" means a person that individually, or through one or more ownership tiers, ultimately holds a 10% or more equity interest in the business entity applying for a title insurance producer license or renewal of a title insurance producer license. (5) "Title agency" has the meaning stated in Sec. 10-125(a)(4) of this subtitle. (6) "Trust money" means a deposit, a payment, or any other money that a person entrusts to a licensed title insurance producer in connection with the provision of escrow, closing, or real estate settlement services relating to property within the State. (7) "Trust money controller" means a person within a title agency who has day-to-day direct control over trust money. (b) (1) Except as provided in paragraph (2) of this subsection, only a licensed title insurance producer may exercise control over trust money. (2) Paragraph (1) of this subsection does not apply to trust money that is entrusted to: (i) a law firm as defined in Sec. 10-125 of this subtitle; or (ii) a title insurer. (c) A person may not convert or misappropriate money received or held in escrow or trust while: (1) acting as a title insurance producer; or (2) providing any escrow, closing, or settlement services. (d) (1) Each controlling person and each trust money controller shall hold a license to act as a title insurance producer and, if applicable, an appointment with a title insurer. (2) If an applicant for a license is a business entity, the application shall be accompanied by an entity authorization that: (i) identifies each controlling person; (ii) designates each person that will be a trust money controller for the title agency; (iii) identifies each owner; and (iv) identifies each officer, director, manager, general partner, or other person designated by the business entity to act as the business entity's principal contact with the Administration. (3) When the application of a business entity for a license as a title insurance producer is submitted, the Commissioner shall investigate the character of each person identified as a controlling person and each person identified as a trust money controller in the entity authorization included with the application. (e) (1) In addition to meeting any of the applicable requirements for a license to act as an insurance producer under this subtitle, a business entity applicant for a license as a title insurance producer shall file with the Commissioner: (i) a blanket fidelity bond covering appropriate employees and title insurance producer independent contractors; and (ii) (1) a blanket surety bond; or (2) a letter of credit. (2) Unless the Commissioner approves a lesser amount, each bond or letter of credit shall be for $150,000. (3) The Commissioner may adopt regulations that specify when it is appropriate for a bond or letter of credit to be less than $150,000. (4) Notwithstanding paragraph (2) of this subsection, the Commissioner may waive the requirement for a bond or letter of credit if the Commissioner finds that bonds are not generally available or reasonably affordable. (5) The Commissioner shall make a specific finding that states the reason for accepting a bond or letter of credit for less than $150,000. (f) (1) The surety bond or letter of credit shall be for the benefit of any person that suffers a loss if the title insurance producer converts or misappropriates money received or held in escrow or trust while: (i) acting as a title insurance producer; or (ii) providing any escrow, closing, or settlement services. (2) The fidelity bond shall be for the benefit of the employer of the title insurance producer who suffers any loss as described in paragraph (1) of this subsection. (3) The total liability of the surety insurer under each bond or letter of credit may not exceed $150,000. (g) The title insurance producer shall file the bond or letter of credit with the Commissioner: (1) after the Commissioner notifies the title insurance producer of the approval of the application for a license; and (2) before the Commissioner issues the license. (h) (1) Each bond or letter of credit shall remain in force until: (i) the surety insurer is released from liability by the Commissioner; or (ii) the bond or letter of credit is canceled by the surety insurer. (2) A surety insurer shall notify the title insurance producer and the Commissioner at least 30 days before canceling a bond or letter of credit. (3) If a surety insurer fails to notify the title insurance producer and the Commissioner as required by paragraph (2) of this subsection, the bond or letter of credit remains in effect until the surety insurer notifies the title insurance producer and the Commissioner. (4) A cancellation under this subsection does not affect any liability that occurred during the life of the bond or letter of credit and before the date of cancellation. (i) Before the Commissioner renews the license of a title insurance producer, the title insurance producer shall submit satisfactory evidence of compliance with this section. (j) (1) If a title insurance producer has been charged with a violation of this section or this article that could result in suspension or revocation of the license of the title insurance producer, the Commissioner may seek an immediate restraining order from a circuit court to prohibit the title insurance producer from providing title insurance, escrow, closing, or settlement services. (2) A restraining order issued by a court under this subsection is effective until: (i) the court lifts the restraining order; or (ii) the charges are dismissed or adjudicated. (k) (1) (i) Except as provided in paragraph (5) of this subsection, the title insurer shall during each calendar year conduct an annual review of the underwriting, claims, and escrow practices of each title insurance producer appointed by the insurer as a principal agent as designated in the title insurance agency contract between the insurer and the producer. (ii) The annual review shall include a review of the title insurance producer's or agency's policy issuing and processing operations. (iii) The annual review may be conducted: (1) at the place of business of the title insurance producer; (2) remotely by using mail, overnight delivery, or electronic means; or (3) using any combination of items 1 and 2 of this subparagraph. (iv) If the title insurance producer or agency does not maintain separate bank or trust accounts for each title insurer it represents, the title insurer shall verify that the funds held on its behalf are reasonably ascertainable from the books of account and records of the title insurance producer or agency. (v) Subject to the requirement under paragraph (3) of this subsection to report suspected violations that the title insurer has reasonable cause to believe have occurred, if the title insurance producer or title agency holds an appointment with more than one title insurer, the title insurer may limit its review to files, separately held accounts, and written documentation relating to its title insurance policies. (2) A written report setting forth the results of the annual review shall be prepared by the title insurer and is subject to examination under Sec. 2-205 of this article. (3) If, as a result of the annual review, a title insurer has reasonable cause to believe that a title insurance producer or agency has engaged in any of the prohibited activities set forth in Sec. 10-126 of this subtitle, the title insurer shall report in writing the suspected violation to the Commissioner in the report prepared under paragraph (2) of this subsection in a form and format created by the Commissioner. (4) The annual review required under this section is in addition to any examination conducted by the Commissioner to determine compliance with the accounts maintained for the benefit of the Maryland Affordable Housing Trust under Sec. 22-105 of this article. (5) The title insurer is not required to perform the annual review of a title insurance producer for the calendar year during which the title insurance producer is initially appointed if the appointment is made on or after June 30 of that calendar year. (l) (1) A title insurance producer shall notify any title insurer with whom the title insurance producer holds an appointment whenever a person licensed under this subtitle becomes employed by, or associated with, the title insurance producer. (2) The bonding requirements of this subtitle relating to title insurance producers do not apply to an employee or officer of an authorized title insurer. (m) (1) A title insurance producer shall notify the Commissioner, and any insurer with whom the title insurance producer holds an appointment, if an individual licensed under this subtitle leaves the employment of or ends an association with the title insurance producer. (2) The title insurance producer required to provide notice under this subsection shall notify the Commissioner within 5 working days after the day the individual leaves employment or ends the association. (3) The notice required under this subsection shall be: (i) in writing; and (ii) sent by certified mail or by electronic means in accordance with Sec. 2-116 of this article. (n) Notwithstanding subsections (e) and (g) of this section, a title insurance producer independent contractor who provides escrow closing or settlement services that may result in the issuance of a title insurance contract for or on behalf of a title insurance producer is not required to file a blanket fidelity bond, blanket surety bond, or letter of credit with the Commissioner. (o) In addition to any requirements under this subtitle, title insurance producers shall comply with this section. #### Section 10-121.1 (a) A title insurance producer may not use or accept the services of a title insurance producer independent contractor unless the title insurance producer independent contractor: (1) holds an appointment with the title insurer with which the contract of title insurance may be placed; and (2) is covered under the title insurance producer's: (i) blanket fidelity bond; and (ii) blanket surety bond or letter of credit. (b) (1) A title insurance producer that uses the services of a title insurance producer independent contractor is: (i) the legal principal of the title insurance producer independent contractor; and (ii) liable for all actions of the title insurance producer independent contractor, including unintentional conduct, that occurs within the scope of the title insurance producer's independent contractor's employment. (2) When a mortgage or deed of trust is executed in a transaction in which a title insurance producer independent contractor is acting for or on behalf of a title insurance producer, there shall be included on or with the recorded mortgage or deed of trust the name, address, and license number of the title insurance producer independent contractor and the title insurance producer for which the title insurance producer independent contractor is acting. #### Section 10-122 (a) Without regard to the examination requirements of this subtitle, the Commissioner may issue a limited lines license to an individual who or a business entity that sells travel insurance. (b) A limited lines license issued under this section authorizes the holder to act as an insurance producer only as to travel insurance. (c) The Commissioner may require and provide special forms requiring information the Commissioner considers proper in connection with the application for or renewal of limited lines licenses issued under this section. (d) (1) (i) Notwithstanding any other law, a travel retailer may offer and disseminate travel insurance on behalf of and under the license of a limited lines travel insurance producer only if the provisions of this paragraph are met. (ii) The limited lines travel insurance producer or travel retailer shall provide in writing to a purchaser of travel insurance: (1) a description of the material terms or the actual terms of the insurance coverage; (2) a description of the process for filing a claim; (3) a description of the review or cancellation process for the travel insurance policy; (4) a disclosure that: (A) the offered insurance coverage may duplicate certain provisions of insurance coverage already provided by the purchaser's homeowner's insurance, renter's insurance, health insurance, or similar insurance coverage; and (B) the purchase of travel insurance would make the travel insurance coverage primary to any other duplicate or similar coverage; (5) the identity and contact information of the insurer and limited lines travel insurance producer; and (6) contact information for filing a complaint with the Commissioner. (iii) (1) At the time of licensure, the limited lines travel insurance producer shall establish and maintain a register, on a form the Commissioner requires, of each travel retailer that offers and disseminates travel insurance on behalf of the limited lines travel insurance producer. (2) The limited lines travel insurance producer shall: (A) submit the register for inspection by the Commissioner as the Commissioner requires; and (B) include in the register the name, address, and contact information of the travel retailer and an officer or a person who directs or controls the travel retailer's operations, and the travel retailer's federal tax identification number. (3) The limited lines travel insurance producer shall also certify that each travel retailer on the register maintained by the limited lines travel insurance producer complies with 18 U.S.C. Sec. 1033. (iv) (1) The limited lines travel insurance producer shall designate one of its employees who holds a limited lines license under this section as a designated responsible person to ensure the limited lines travel insurance producer's compliance with the laws and regulations for travel insurance in the State. (2) The designated responsible person described in subsubparagraph 1 of this subparagraph or the president, secretary, treasurer, and any other officer or person of the limited lines travel insurance producer who directs or controls the operations of the limited lines travel insurance producer shall comply with fingerprinting requirements applicable to insurance producers in the State. (v) The limited lines travel insurance producer shall be in good standing with the Commissioner with respect to its license. (vi) (1) The limited lines travel insurance producer shall require each employee or authorized representative of the travel retailer whose duties include offering and disseminating travel insurance to receive a program of instruction or training, which shall be subject to review by the Commissioner. (2) The training material shall contain, at a minimum, instruction on the types of insurance offered, ethical sales practices, and required disclosures to prospective customers. (2) A travel retailer offering or disseminating travel insurance on behalf of a limited lines travel insurance producer shall make available to a prospective purchaser brochures or other written materials that: (i) provide the identity and contact information of the limited lines travel insurance producer overseeing the activities of the travel retailer; (ii) explain that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer; and (iii) explain that a travel retailer: (1) is allowed to provide general information about the insurance offered and disseminated by the travel retailer, including a description of the coverage and price; but (2) is not qualified or authorized to answer technical questions about the terms and conditions of the insurance offered by the travel retailer or to evaluate the adequacy of the customer's existing insurance coverage. (3) A travel retailer's employee or authorized representative who is not licensed as a limited lines travel insurance producer under this section may not: (i) evaluate or interpret the technical terms, benefits, and conditions of the offered travel insurance coverage; (ii) evaluate or provide advice concerning a prospective purchaser's existing insurance coverage; or (iii) hold himself or herself out as a limited lines travel insurance producer, any other insurance producer, or an insurance expert. (4) (i) A travel retailer whose insurance related activities, and those of its employees or authorized representatives, are limited to offering and disseminating travel insurance on behalf of and under the direction of a limited lines travel insurance producer under this section may receive compensation when listed on a register maintained by the limited lines travel insurance producer in accordance with paragraph (1)(iii) of this subsection. (ii) A travel retailer may not compensate an employee or authorized representative for insurance related activities in a manner that is based primarily on the number of customers who purchase travel insurance coverage. (iii) This section may not be construed to prohibit payment of compensation to a travel retailer or its employees or authorized representatives for activities under the limited lines travel insurance producer's license that are incidental to the travel retailer's or its employee's or authorized representative's overall compensation. (5) The limited lines travel insurance producer: (i) is responsible for the acts of the travel retailer; and (ii) shall use reasonable means to ensure compliance by the travel retailer with this section. #### Section 10-123 On application, the Commissioner shall issue to an individual qualified in accordance with this subtitle a license that is limited to the business of selling motor vehicle insurance coverages only, including bodily injury liability, property damage liability, and automobile physical damage. #### Section 10-124 (a) Without regard to the examination requirements of this subtitle, the Commissioner may issue a limited lines license to an individual who is employed by a health maintenance organization solely to solicit membership in the health maintenance organization under a contract: (1) between the health maintenance organization and the Maryland Department of Health; and (2) in accordance with which the Maryland Department of Health obtains prepaid comprehensive health care services for recipients of medical assistance under Sec. 15-105 of the Health - General Article. (b) The annual license fee is provided in Sec. 2-112 of this article. #### Section 10-125 (a) (1) In this section the following words have the meanings indicated. (2) "Attorney" means an individual admitted to practice law by the Supreme Court of Maryland of the State. (3) (i) "Law firm" means an association of attorneys in a law partnership, professional corporation, sole proprietorship, or other business entity who: (1) are primarily engaged in the practice of law; and (2) solicit, procure, or negotiate title insurance contracts only as an incident to the practice of law. (ii) "Law firm" includes a sole practitioner. (iii) "Law firm" does not include: (1) an attorney or an association of attorneys who own, operate, or share an interest in a title agency; or (2) an attorney who is employed by a title agency as a title insurance producer. (4) (i) "Title agency" means a business entity, other than a law firm, formed for the primary purpose of soliciting, procuring, or negotiating title insurance contracts and providing settlement services. (ii) "Title agency" includes a sole proprietor, partnership, or corporation. (b) Subject to this section, the Commissioner may issue a limited lines license to an attorney who solicits, procures, or negotiates title insurance contracts to act as a title insurance producer. (c) All licensing provisions of this subtitle apply to: (1) an attorney who solicits, procures, or negotiates title insurance contracts; and (2) title agencies even if the title agency is established or owned by an attorney or an association of attorneys. (d) Notwithstanding any other provision of this subtitle: (1) (i) the licensing, bonding, and examination requirements of this subtitle relating to title insurance producers do not apply to law firms; and (ii) except as otherwise provided in paragraph (2) of this subsection, the bonding and examination requirements of this subtitle relating to title insurance producers do not apply to attorneys. (2) The bonding requirements of this subtitle are applicable to: (i) an attorney or an association of attorneys who own, operate, or share an interest in a title agency; and (ii) an attorney who is employed by a title agency as a title insurance producer. #### Section 10-126 (a) The Commissioner may deny a license to an applicant under Sec.Sec. 2-210 through 2-214 of this article, or suspend, revoke, or refuse to renew or reinstate a license after notice and opportunity for hearing under Sec.Sec. 2-210 through 2-214 of this article if the applicant or holder of the license: (1) has willfully violated this article or another law of the State that relates to insurance; (2) has intentionally misrepresented or concealed a material fact in the application for a license; (3) has obtained or attempted to obtain a license by misrepresentation, concealment, or other fraud; (4) has misappropriated, converted, or unlawfully withheld money belonging to an insurer, insurance producer, beneficiary, or insured; (5) has willfully and materially misrepresented the provisions of a policy; (6) has committed fraudulent or dishonest practices in the insurance business; (7) has participated, with or without the knowledge of an insurer, in selling motor vehicle insurance without an actual intent to sell the insurance, as evidenced by a persistent pattern of filing certificates of insurance together with or closely followed by cancellation notices for the insurance; (8) has been convicted by final judgment in any state or federal court of a felony or crime involving moral turpitude; (9) has knowingly participated in writing or issuing substantial over-insurance of property insurance risks; (10) has failed an examination required by this subtitle; (11) has willfully failed to comply with or has willfully violated a proper order, subpoena, or regulation of the Commissioner or the insurance regulatory authority of another state; (12) has failed or refused to pay over on demand money that belongs to an insurer, insurance producer, or other person entitled to the money; (13) has otherwise shown a lack of trustworthiness or competence to act as an insurance producer; (14) is not or does not intend to carry on business in good faith and represent to the public that the person is an insurance producer; (15) has been denied a license or certificate in another state or has had a license or certificate suspended or revoked in another state; (16) has intentionally or willfully made or issued, or caused to be made or issued, a statement that materially misrepresents or makes incomplete comparisons about the terms or conditions of a policy or contract issued by an authorized insurer, for the purpose of inducing or attempting to induce the owner of the policy or contract to forfeit or surrender it or allow it to lapse in order to replace it with another; (17) has transacted insurance business that was directed to the applicant or holder for consideration by a person whose license or certificate to engage in the insurance business at the time was suspended or revoked, and the applicant or holder knew or should have known of the suspension or revocation; (18) has solicited, procured, or negotiated insurance contracts for an unauthorized insurer, including contracts for nonprofit health service plans, dental plan organizations, and health maintenance organizations; (19) has knowingly employed or knowingly continued to employ an individual acting in a fiduciary capacity who has been convicted of a felony or crime of moral turpitude within the preceding 10 years; (20) has forged another's name to an application for insurance or to any document related to an insurance transaction; (21) has improperly used notes or any other reference material to complete an examination for a license; (22) has failed to pay income tax or related interest or penalty under: (i) an assessment under the Tax - General Article that is final and no longer subject to review by the tax court; or (ii) an order of the tax court that is final and no longer subject to judicial review; or (23) in providing information under Sec. 10-118 of this subtitle regarding the termination of an appointment with an insurer, has made an inaccurate statement with actual malice. (b) (1) The Commissioner may deny a license to an applicant business entity under Sec.Sec. 2-210 through 2-214 of this article, or suspend, revoke, or refuse to renew or reinstate a license of a business entity after notice and opportunity for hearing under Sec.Sec. 2-210 through 2-214 of this article, if an individual listed in paragraph (2) of this subsection has: (i) violated any provision of this subtitle; (ii) been convicted of a felony, a crime of moral turpitude, or any criminal offense involving dishonesty or breach of trust; or (iii) had any professional license suspended or revoked for a fraudulent or dishonest practice. (2) This subsection applies in any case that involves a business entity if the violation was committed by an individual who is: (i) an insurance producer; (ii) (1) in the case of a limited liability company, an officer, director, member, or manager; (2) in the case of a partnership, a partner; and (3) in the case of a corporation, a director, officer, or owner; or (iii) an individual with direct control over the fiscal management of the business entity. (c) Instead of or in addition to suspending or revoking the license, the Commissioner may impose on the holder of the license a penalty of not less than $100 but not exceeding $5,000 for each violation of this article. (d) Instead of or in addition to suspending or revoking the license, the Commissioner may require that restitution be made to any citizen who has suffered financial injury because of the violation of this article. (e) If the license is suspended under this section, the Commissioner may require the individual to pass an examination and file a new application before the suspension is lifted. (f) (1) Within 30 days after the final disposition of the matter, an insurance producer shall report to the Commissioner any adverse administrative action taken against the insurance producer: (i) in another jurisdiction; or (ii) by another governmental unit in this State. (2) The report shall include a copy of the order, consent order, and any other relevant legal documents. (g) (1) (i) In this subsection, the term "charging document" means a written accusation alleging that a defendant has committed an offense. (ii) In this subsection, the term "charging document" includes: (1) a citation; (2) an indictment; (3) an information; and (4) a statement of charges. (2) This subsection does not apply to a misdemeanor violation of the Maryland Vehicle Law or the vehicle law of another jurisdiction. (3) If an insurance producer is prosecuted for a crime in any jurisdiction, the insurance producer shall report the prosecution to the Commissioner within 30 days after the insurance producer's initial appearance before a court, including an appearance before: (i) a judicial officer of the District Court due to an arrest; (ii) the District Court in response to a summons; (iii) the circuit court due to execution of a warrant; or (iv) the circuit court in person or by written notice of counsel in response to a summons. (4) The report shall include a copy of: (i) the charging document; (ii) any order issued by a court; and (iii) any other relevant legal documents. (h) An individual is subject to denial or suspension of a license under Sec. 10-119.3 of the Family Law Article if the individual: (1) is in arrears in the payment of child support amounting to more than 120 days under the most recent order; or (2) has failed to comply with a subpoena issued by the Child Support Administration under Sec. 10-108.6 of the Family Law Article. #### Section 10-127 An insurer may not cancel a policy for nonpayment of premiums if the premium due on the policy has been paid to the insurance producer. #### Section 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 Sec. 10-119 of this subtitle. (c) (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. (d) (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. #### Section 10-128.1 The Commissioner shall adopt regulations establishing the minimum length of time for which and the manner in which an independent insurance producer is required to maintain records of insurance transactions conducted by the insurance producer. #### Section 10-129 A person other than an independent insurance producer may not be represented to the public as an independent insurance producer. #### Section 10-130 (a) Except as otherwise provided in Sec.Sec. 10-102, 10-119, and 10-122 of this subtitle and Sec. 10-602 of this title, a commission, fee, reward, rebate, or other consideration for selling, soliciting, or negotiating insurance may not be paid, directly or indirectly, to a person other than a licensed insurance producer. (b) Except as otherwise provided in this article, for life insurance or health insurance this section does not prohibit payment to or receipt by a person who formerly held a license and, if the person acted on behalf of an insurer, an appointment of: (1) commissions on renewal premiums on existing policies; or (2) other deferred commissions. (c) Unless the payment would violate Sec. 27-209 or Sec. 27-212 of this article, an insurer or insurance producer may pay or assign commissions, service fees, or other valuable consideration to an insurance agency or to persons who do not sell, solicit, or negotiate insurance in the State. #### Section 10-131 A person that violates Sec. 10-103(b) or (c), Sec. 10-130, or Sec. 10-133 of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500 or imprisonment not exceeding 6 months or both for each violation. #### Section 10-132 A title insurance producer that willfully or knowingly violates Sec. 10-121 of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $50,000 or imprisonment not exceeding 1 year or both. #### Section 10-133 (a) In this section, "medical professional liability insurance" means insurance providing coverage against damages due to medical injury arising out of the performance of professional services rendered or which should have been rendered by a health care provider. (b) A licensed insurance producer may not enter into an exclusive appointment agreement with an authorized insurer that issues medical professional liability insurance. ### Subtitle 2. Advisers #### Section 10-201 (a) In this subtitle the following words have the meanings indicated. (b) "Adviser" means a person that, for compensation: (1) examines or offers to examine a policy, annuity contract, or pure endowment contract for the purpose of giving, or gives or offers to give, advice or information about: (i) the terms, conditions, benefits, coverage, or premium of a policy, annuity contract, or pure endowment contract; or (ii) the advisability of changing, exchanging, converting, replacing, surrendering, continuing, or rejecting a policy, annuity contract, or pure endowment contract or of accepting or procuring a policy, annuity contract, or pure endowment contract from an insurer; or (2) represents to the public that the person gives or is engaged in the business of giving advice or information to holders of policies or annuity contracts by use of the title "insurance adviser", "insurance specialist", "insurance counselor", "insurance analyst", "policyholders' adviser", "policyholders' counselor", "refund company", or other similar title: (i) in or on advertisements, cards, signs, circulars, letterheads, or elsewhere; or (ii) in any other manner in which public announcements are made. (c) "License" means a license issued by the Commissioner to act as an adviser. #### Section 10-202 (a) (1) In this section the following words have the meanings indicated. (2) "Guaranteed investment contract" means an agreement between an insurer and an entity listed in subsection (b)(5)(ii)2 of this section that: (i) permits withdrawals by the purchaser for specified purposes; and (ii) contains a general obligation of the insurer to repay a deposit plus interest. (3) "Synthetic investment contract" means an agreement between an insurer and an entity listed in subsection (b)(5)(ii)2 of this section that: (i) permits withdrawals by the purchaser for specified purposes; and (ii) contains a limited obligation of the insurer to repay a deposit plus interest that is supported by a portfolio of fixed income securities identified in the agreement and owned by the purchaser. (b) This subtitle does not apply to: (1) an officer, employee, insurance producer, or other representative of an authorized insurer while acting for the authorized insurer; (2) an insurance producer that holds a license while acting as an insurance producer for a client; (3) an attorney at law of the State while acting within the scope of the legal profession; (4) a licensed public adjuster while acting within the scope of the public adjuster's license; and (5) an individual: (i) who is employed by an investment adviser registered with the Securities and Exchange Commission; (ii) whose only clients in the State each: (1) has assets of not less than $5,000,000; and (2) is one of the following types of institutional investors, whether acting for itself or as a trustee or fiduciary with investment control: (A) an investment company, as defined in the Investment Company Act of 1940; (B) an investment adviser registered with the Securities and Exchange Commission; (C) an adviser, as defined in Sec. 10-201 of this subtitle; (D) a federal covered adviser, as defined in the Maryland Securities Act, Title 11 of the Corporations and Associations Article; (E) a broker-dealer; (F) a bank, trust company, or savings and loan association; (G) a collective investment fund or common trust fund maintained by a bank or trust company; (H) an insurer; (I) an employee benefit plan; (J) a governmental agency or instrumentality; or (K) any other type of institutional investor, as designated by the Commissioner; and (iii) whose business activities in the State that would otherwise be subject to regulation under this subtitle are limited to acting as an adviser with respect to guaranteed investment contracts or synthetic investment contracts. (c) This section may not be construed to afford coverage for guaranteed investment contracts or synthetic investment contracts under the Life and Health Insurance Guaranty Corporation Act, Title 9, Subtitle 4 of this article. #### Section 10-203 (a) Except as otherwise provided in this subtitle or Sec.Sec. 10-14A-03 and 10-14B-03 of the State Government Article, a person must obtain a license before the person acts as an adviser in the State. (b) An insurance producer or other representative of an authorized insurer that, while acting for an authorized insurer, uses a title similar to those listed in Sec. 10-201(b)(2) of this subtitle in close conjunction with all or part of the name of the authorized insurer need not obtain a license if the insurance producer or other representative certifies to the Commissioner that the insurance producer or representative has completed successfully a course submitted to and approved by the Commissioner. #### Section 10-204 (a) To qualify for a license, an applicant must be an individual who meets the requirements of this section. (b) An applicant must be trustworthy and competent to act as an adviser so as not to jeopardize the public interest. (c) A license may be issued to: (1) a resident of the State who takes and passes the examination required under subsection (d) of this section; (2) a resident of the State who: (i) is a member in good standing of the Society of Actuaries or the Casualty Actuarial Society; (ii) has been conferred the Chartered Property Casualty Underwriter (C.P.C.U.) designation by The American Institute for Property and Liability Underwriters, Inc. and is a member in good standing of the Society of Chartered Property and Casualty Underwriters; (iii) has been conferred the Chartered Life Underwriter (C.L.U.) designation by The American College of Life Underwriters and is a member in good standing of The American Society of Chartered Life Underwriters and Chartered Financial Consultants; (iv) has been conferred the Certified Employee Benefit Specialist (C.E.B.S.) designation by the International Foundation of Employee Benefit Plans and is a member in good standing of the International Society of Certified Employee Benefit Specialists; (v) is currently certified by the Certified Financial Planner Board of Standards to use the marks Certified Financial Planner and CFP; or (vi) has completed successfully a course of study equivalent to any course of study required for membership in good standing in any society or professional entity listed in items (i) through (v) of this item as approved by the Commissioner and has been conferred the Certified Insurance Counselor designation by The Society of Certified Insurance Counselors; or (3) (i) a nonresident of the State who is licensed as an insurance adviser in the nonresident's state of residence; or (ii) if the Commissioner determines that the applicant is otherwise qualified to act as an insurance adviser, a nonresident of Maryland whose state of residence does not issue: (1) an insurance adviser's license; or (2) the equivalent of an insurance adviser's license. (d) (1) The Commissioner shall determine the trustworthiness and competency of each applicant to act as an adviser in the State. (2) To determine the trustworthiness and competency of an applicant described in subsection (c)(1) of this section, the Commissioner shall require the applicant to take and pass, to the satisfaction of the Commissioner, an examination. (3) A nonresident applicant shall satisfy the Commissioner of the applicant's trustworthiness and competency by filing a certification from an appropriate official of the applicant's state of residence certifying that the applicant holds a currently valid license or certificate to act as an insurance adviser in the applicant's state of residence. (e) (1) Before taking the examination required under subsection (d) of this section, an applicant shall pay the application fee required by Sec. 2-112 of this article. (2) After an applicant has been notified that the applicant has passed the examination, the applicant shall pay the applicable license fee required by Sec. 2-112 of this article. (3) An applicant who is not required to take an examination shall pay the applicable license fee required by Sec. 2-112 of this article. #### Section 10-205 An applicant for a license shall file with the Commissioner an application on the form that the Commissioner provides. #### Section 10-206 An applicant for a license shall file with the Commissioner a bond that: (1) is approved by the Commissioner as to form and sufficiency of security; (2) is executed by the applicant and an authorized surety insurer; (3) is in the penal sum of $1,000; (4) is conditioned on the applicant faithfully performing the duties of an adviser; (5) runs to the State; and (6) specifically authorizes the State to recover the penal sum of the bond if the applicant is guilty of fraudulent or dishonest practices while acting as an adviser. #### Section 10-207 The Commissioner shall issue a license to each applicant who meets the requirements of this subtitle. #### Section 10-208 A license does not authorize the licensee to: (1) adjust losses; or (2) receive compensation from an insurer or insurance producer for the sale or placement of insurance. #### Section 10-210 A licensee may conduct an insurance advisory business as a sole proprietorship, partnership, association, or corporation if: (1) each individual who acts as an adviser is licensed under this subtitle; and (2) the trade name of the business is registered with the Commissioner. #### Section 10-211 (a) A license expires every other year on the date stated on the license unless renewed as provided in this section. (b) At least 1 month before a license expires, the Commissioner shall send to the holder of the license, at the last known address or electronic mail address of the holder on record a notice that states: (1) the process for renewing the license; (2) the date by which the Commissioner must receive the renewal application; and (3) the amount of the renewal fee. (c) Before a license expires, the holder of the license periodically may renew it for an additional 2-year term, if the holder: (1) otherwise is entitled to a license; (2) files with the Commissioner a renewal application: (i) on the form that the Commissioner provides; or (ii) in an electronic format that the Commissioner approves; (3) pays to the Commissioner the renewal fee required by Sec. 2-112 of this article; (4) is in compliance with the bond requirement of Sec. 10-206 of this subtitle; and (5) if the Commissioner determines that an examination is advisable to determine the trustworthiness or competence of a holder, passes an examination given by the Commissioner. (d) A license renewed under this section shall have an expiration date that is the last day of the month in which the holder of the license was born. (e) (1) If mailed, an application for renewal of a license shall be considered made in a timely manner if it is postmarked on or before the expiration date of the license. (2) If submitted electronically, an application for renewal of a license shall be considered made in a timely manner if, on or before the expiration date of the license, the application: (i) is addressed properly or otherwise directed properly to an information processing system that the Administration has designated or uses for the purpose of receiving electronic applications and from which the Administration is able to retrieve the application; (ii) is in a form capable of being processed by that system; and (iii) (1) enters an information processing system outside the control of the sender or of a person that sent the electronic application on behalf of the sender; or (2) enters a region or the information processing system designated or used by the Administration that is under the control of the Administration or an agent of the Administration. (f) (1) The Commissioner shall renew the license of each holder who meets the requirements of this section. (2) If the holder of a license files an application for renewal before the license expires, the license shall remain in effect until: (i) the Commissioner issues a renewal license; or (ii) 5 days after the Commissioner refuses to renew the license and gives notice of the refusal to the holder. (g) The Commissioner may adopt regulations to carry out this section. #### Section 10-211.1 (a) On or before September 30 of the renewal year, a person whose insurance adviser's license has expired may reinstate the expired license by: (1) filing with the Commissioner the appropriate reinstatement application; (2) paying to the Commissioner the applicable reinstatement fee required under subsection (b) of this section; and (3) complying with the bond requirement of Sec. 10-206 of this subtitle. (b) (1) The fee for a reinstatement under this section shall be: (i) the amount charged for a full renewal period for the type of license held by the person seeking the reinstatement; and (ii) (1) $25 for reinstatement during the period from July 1 through July 31; (2) $50 for reinstatement during the period from August 1 through August 31; and (3) $75 for reinstatement during the period from September 1 through September 30. (2) The Commissioner may limit the reinstatement fee to the amount of the renewal fee in cases where the reinstatement applicant did not make timely renewal because of temporary incapacity, hospitalization, or other hardship. (c) A person whose insurance adviser's license has expired is prohibited from acting as an insurance adviser until the effective date of reinstatement of the license. (d) A person who does not comply with subsection (a) of this section on or before September 30 of the year of expiration shall apply for an insurance adviser's license under Sec. 10-205 of this subtitle and meet any other requirements specified by the Commissioner in regulation. (e) The Commissioner may adopt regulations to carry out this section. #### Section 10-212 (a) Subject to the hearing provisions of Title 2 of this article, the Commissioner may suspend or revoke a license if the licensee: (1) has violated this article; (2) has violated any law while acting as an adviser; (3) has made a material misstatement in the application for the license; (4) has been guilty of fraudulent or dishonest practices; or (5) has demonstrated incompetency or untrustworthiness to act as an adviser. (b) (1) Any licensee or any person aggrieved may file with the Commissioner a verified complaint that states facts that show sufficient grounds to suspend or revoke a license. (2) On the filing of a complaint, the Commissioner, after notice and hearing, shall determine whether to suspend or revoke the license. (c) An adviser whose license has been revoked may not obtain another license or renew a license for at least 1 year after: (1) the date of revocation, if there is no judicial review; or (2) the final determination in the judicial proceeding confirming the revocation, if there is judicial review. #### Section 10-213 If an application for a license is denied or a license is suspended or revoked, the Commissioner immediately shall give notice to the applicant or licensee by: (1) registered mail addressed to the applicant's or licensee's last address of record with the Commissioner; or (2) electronic means in accordance with Sec. 2-116 of this article. #### Section 10-214 (a) The Commissioner at any time may require a licensee to provide information that the Commissioner considers necessary about the business methods, policies, contracts, or transactions of the licensee. (b) Within 10 days after receiving a written request for information under this section, the licensee shall provide the Commissioner with the information in the form that the Commissioner requires. #### Section 10-215 (a) An agreement between an adviser and another person that relates to the giving of advice or information of the type given by advisers is not enforceable by or for the adviser unless: (1) the agreement is in writing; (2) the agreement is executed personally in duplicate by the person to be charged or by the legal representative of the person; (3) a duplicate of the agreement is delivered to and kept by the person when it is signed by that person; (4) the agreement plainly states the amount of the fee paid or to be paid by the person and the services to be performed by the adviser; and (5) the agreement is in the form that the Commissioner currently approves. (b) (1) All forms of statements, receipts, and agreements used by licensees must be filed with and approved by the Commissioner as: (i) conforming to the requirements of this section; (ii) not inconsistent with law; and (iii) not misleading in any way. (2) The Commissioner may disapprove a form if the Commissioner finds that the form: (i) contains any provision or any title, heading, backing, or other indication of its contents that is likely to be misleading; or (ii) omits any provision that the Commissioner requires to make the form clear and not misleading. ### Subtitle 3. Bail Bondsmen #### Section 10-301 (a) In this subtitle the following words have the meanings indicated. (b) "Bail bond" means a written obligation of a defendant, with or without a surety or collateral security, that: (1) is conditioned on the appearance of the defendant as required; and (2) provides for the payment of a penal sum according to its terms. (c) "Bail bondsman" means an authorized insurance producer of a surety insurer. (d) "Collateral security" means any property deposited, pledged, or encumbered to secure the performance of a bail bond. (e) "License" means a license issued by the Commissioner to provide bail bondsman services. (f) "Provide bail bondsman services" means to provide any service in the bail bondsman trade. (g) (1) "Surety" means a person, other than the defendant, that guarantees the appearance of the defendant by executing a bail bond. (2) "Surety" includes an uncompensated or accommodation surety. (h) "Surety insurer" means a person that, for compensation, directly or through an authorized insurance producer, acts as a surety on a bail bond. #### Section 10-302 Except as provided in Sec. 10-309 of this subtitle, this subtitle does not apply to bail bondsmen that provide bail bondsman services under Sec. 5-203 of the Criminal Procedure Article. #### Section 10-303 The Commissioner shall adopt regulations to carry out this subtitle. #### Section 10-304 (a) Except as provided in Sec.Sec. 10-14A-03 and 10-14B-03 of the State Government Article, an individual must obtain a license before the individual provides bail bondsman services in the State. (b) A license issued by the Commissioner under this subtitle is identical to a license issued under Subtitle 1 of this title. #### Section 10-305 An applicant for a license must be an individual who meets the requirements for acting as a property and casualty insurance producer under Subtitle 1 of this title. #### Section 10-306 The Commissioner shall set licensing fees that are sufficient to cover the expenses of licensing bail bondsmen under this subtitle. #### Section 10-307 Each bail bondsman must comply with any continuing education requirements that the Commissioner sponsors or approves. #### Section 10-308 Each year, each bail bondsman must certify to the Commissioner, on a form that the Commissioner requires, that the majority of the bail bondsman's income is from providing bail bondsman services. #### Section 10-309 (a) This section applies to bail bondsmen licensed under this subtitle and to bail bondsmen that provide bail bondsman services under Sec. 5-203 of the Criminal Procedure Article. (b) A bail bondsman may arrange to accept payment for the premium charged for a bail bond in installments. (c) If a bail bondsman arranges to accept payment for the premium charged for a bail bond in installments, the installment agreement: (1) shall be in a form adopted by the Commissioner; (2) shall include: (i) the total amount of the premium owed; (ii) the amount of any down payment made; (iii) the balance amount owed to the bail bondsman or the bail bondsman's insurer; (iv) the amount and due date of each installment payment; and (v) the total number of installment payments required to pay the amount due; and (3) may not include a confessed judgment clause that waives a consumer's right to assert a legal defense to an action. (d) If a bail bondsman arranges to accept payment of the premium charged for a bail bond in installments, the bail bondsman shall: (1) secure a signed affidavit of surety by the defendant or the insurer containing the information required under subsection (c) of this section and provide the affidavit of surety to the court; (2) take all necessary steps to collect the total amount owed by the insured, including seeking remedies provided by law for the collection of debts; and (3) keep and maintain records of all collection attempts, installment agreements, and affidavits of surety. (e) (1) The bail bondsman shall keep and maintain the records required under this section in an office that is generally accessible to the public during normal business hours. (2) The bail bondsman shall make the records required under this section available to the Commissioner for inspection. (3) Each year, each bail bondsman shall certify to the Commissioner that the records required to be kept and maintained under this section are accurate and true. (f) If a bail bondsman violates any provision of this section, the Commissioner may take any actions authorized under Sec. 10-126 of this title. ### Subtitle 4. Public Adjusters #### Section 10-401 (a) In this subtitle the following words have the meanings indicated. (b) "Business entity" has the meaning stated in Sec. 10-101 of this title. (c) "Home state" means: (1) the state where a public adjuster's principal place of residence or principal place of business is located; or (2) the state a public adjuster designates under Sec. 10-409(a)(2) of this subtitle. (d) "Immediate family member" means a public adjuster's: (1) spouse; (2) child; (3) child's spouse; (4) parent; (5) spouse's parent; (6) sibling; or (7) sibling's spouse. (e) "License" means a license issued by the Commissioner to act as a public adjuster. (f) "Marketing" means the distribution of advertising materials regarding the services of a public adjuster. (g) (1) "Public adjuster" means a person who for compensation or any other thing of value: (i) acts or aids, solely in relation to first-party claims arising under an insurance policy that insures the real or personal property of the insured, on behalf of the insured in negotiating for, or effecting the settlement of, a claim for loss or damage covered by an insurance policy; (ii) except as provided in Sec. 10-403 of this subtitle, directly or indirectly solicits for employment as a public adjuster of insurance claims, solicits business, or represents oneself to the public as a public adjuster of first-party insurance claims for losses or damages arising out of insurance policies that insure real or personal property; or (iii) investigates or adjusts losses, or advises an insured about first-party claims for losses or damages arising out of an insurance policy that insures real or personal property for another person engaged in the business of adjusting losses or damages covered by an insurance policy, for the insured. (2) "Public adjuster" does not include a person that investigates, adjusts, or appraises claims for loss or damage covered by a motor vehicle insurance policy. #### Section 10-402 This subtitle does not apply to: (1) an adjuster for or an insurance producer or employee of an insurer or group of insurers under common control or ownership that, as representative of the insurer or group, adjusts losses or damages under policies issued by the insurer or group; (2) an insurance producer that acts as an adjuster without compensation for an insured for whom the insurance producer is acting as an insurance producer; (3) an attorney at law who does not: (i) regularly act as a public adjuster; and (ii) represent to the public by sign, advertisement, or otherwise that the attorney at law acts as a public adjuster; (4) a person who negotiates or settles claims arising under: (i) a life, health, or motor vehicle insurance policy; or (ii) an annuity contract; (5) a person employed only for the purpose of obtaining facts surrounding a loss or furnishing technical assistance to a public adjuster, including a photographer, an estimator, a private investigator, an engineer, and a handwriting expert; (6) a licensed health care provider, or an employee of a licensed health care provider, who prepares or files a health claim form on behalf of a patient; or (7) a person who settles subrogation claims between insurers. #### Section 10-403 (a) Except as otherwise provided in this subtitle or Sec.Sec. 10-14A-03 and 10-14B-03 of the State Government Article, a person must obtain a license before the person acts as a public adjuster in the State. (b) Marketing on behalf of a public adjuster, as defined in Sec.?10-401 of this subtitle, does not require a license. (c) A person that violates this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500 or imprisonment not exceeding 6 months or both for each violation. #### Section 10-404 (a) To qualify for a license, an applicant must be: (1) an individual who meets the requirements of subsection (b) of this section; or (2) a business entity that meets the requirements of subsection (c) of this section. (b) (1) An individual applicant must be trustworthy and competent to transact business as a public adjuster so as to safeguard the interests of the public. (2) Except as otherwise provided in this subsection, an individual applicant shall: (i) pass a written examination given by the Commissioner under this subtitle in order to determine the competency of the applicant to act as a public adjuster; and (ii) pay the license fee required by Sec. 2-112 of this article. (3) The examination requirement of paragraph (2) of this subsection does not apply to an individual who was licensed as a public adjuster in the State on June 30, 1985. (4) An individual applicant who fails an examination may not take another examination until at least 14 days after the date of the last examination that the applicant failed. (c) A business entity applicant must: (1) be trustworthy and competent to transact business as a public adjuster so as to safeguard the interests of the public; (2) employ one or more individual licensed public adjusters; and (3) pay the applicable license fee required by Sec. 2-112 of this article. #### Section 10-405 (a) An applicant for an initial license shall file with the Commissioner an application on the form that the Commissioner provides. (b) The application form shall require: (1) the name and address of the applicant; (2) whether any other insurance license or certificate has been issued to the applicant; (3) for a business entity applicant: (i) the name of the individual licensed public adjuster employed by the business entity who is designated to act as the business entity's principal contact with the Administration; and (ii) the name and address of each licensed public adjuster employed by the business entity, each individual who has direct control over its fiscal management, each owner, partner, member, or manager of the business entity, and each director of a business entity that is a corporation; and (4) any other information that the Commissioner requires of applicants to enable the Commissioner to determine the trustworthiness and competence of the applicant to transact business as a public adjuster so as to safeguard the interests of the public. (c) An application shall be signed under oath: (1) in the case of an individual applicant, by the applicant; or (2) in the case of an applicant that is a business entity, by an individual who has direct control over its fiscal management, an owner, partner, member, or manager of the business entity, or a director of a business entity that is a corporation. #### Section 10-406 The Commissioner shall issue a license to each applicant who meets the requirements of this subtitle. #### Section 10-407 The Commissioner may adopt regulations that specify: (1) the scope, type, conduct, and grading of the written examination; and (2) the frequency, times, and locations within the State where the written examination will be held. #### Section 10-408 (a) A license expires every other year on the date stated on the license unless renewed as provided in this section. (b) At least 1 month before a license expires, the Commissioner shall send to the holder of the license, at the last known address or e-mail address of the holder on record a notice that states: (1) the process for renewing the license; (2) the date by which the Commissioner must receive the renewal application for the renewal to be issued and mailed before the license expires; and (3) the amount of the renewal fee. (c) Before a license expires, the holder of the license may renew it for an additional 2-year term, if the holder: (1) otherwise is entitled to a license; (2) files with the Commissioner a renewal application: (i) on the form that the Commissioner provides; or (ii) in an electronic format that the Commissioner approves; (3) completes the continuing education requirements under subsection (e) of this section; and (4) pays to the Commissioner the renewal fee required by Sec. 2-112 of this article. (d) A license renewed under this section for an individual shall have an expiration date that is the last day of the month in which the license holder was born. (e) (1) The Commissioner shall require a public adjuster who is not a business entity to receive continuing education as a condition of renewing a license of the public adjuster. (2) A public adjuster shall complete the continuing education required under paragraph (1) of this subsection not later than 30 days before the expiration date of the public adjuster's license. (3) The public adjuster shall successfully complete 24 credit hours of approved continuing education for each 2-year license period as a condition for license renewal unless the Commissioner modifies the requirement by regulation. (4) Of the required hours of continuing education required for a renewal period under paragraph (3) of this subsection, at least 3 hours shall relate directly to ethics. (5) The Commissioner may grant a waiver to a public adjuster who has requested a waiver for reasons that the Commissioner determines warrant the waiver. (6) This subsection may not apply to a holder of a license who has not been licensed for 1 full year before the end of the applicable continuing education period. (f) A nonresident license holder shall be deemed to have met the continuing education requirements of this section if: (1) the nonresident license holder satisfies the continuing education requirements of the home state of the nonresident license holder; and (2) the home state of the nonresident license holder allows a public adjuster who is a resident of this State to satisfy the continuing education requirements of the home state on the same basis by meeting the continuing education requirements of this State. (g) (1) If mailed, an application for renewal of a license shall be considered made in a timely manner if it is postmarked on or before the expiration date of the license. (2) If submitted electronically, an application for renewal shall be considered made in a timely manner if, on or before the expiration date of the license, the application: (i) is addressed properly or otherwise directed properly to an information processing system that the Administration has designated or uses for the purpose of receiving electronic applications and from which the Administration is able to retrieve the application; (ii) is in a form capable of being processed by that system; and (iii) (1) enters an information processing system outside the control of the sender or of a person that sent the electronic application on behalf of the sender; or (2) enters a region of the information processing system designated or used by the Administration that is under the control of the Administration or an agent of the Administration. (h) (1) The Commissioner shall renew the license of each holder who meets the requirements of this section. (2) If the holder of a license files an application for renewal before the license expires, the license shall remain in effect until: (i) the Commissioner issues a renewal license; or (ii) 5 days after the Commissioner refuses in writing to renew the license and serves notice of the refusal on the holder. (i) The Commissioner may adopt regulations to carry out this section. #### Section 10-408.1 (a) For up to 1 year after the expiration date, a person whose public adjuster's license has expired may reinstate the expired license by: (1) filing with the Commissioner the appropriate reinstatement application; (2) paying to the Commissioner the applicable reinstatement fee required under subsection (b) of this section; and (3) submitting proof of completion of the continuing education requirements in Sec. 10-408 of this subtitle. (b) (1) The fee for a reinstatement under this section shall be: (i) the amount charged for a full renewal period for the type of license held by the person seeking the reinstatement; and (ii) a reinstatement fee of $100. (2) The Commissioner may limit the reinstatement fee to the amount of the renewal fee in cases where the reinstatement applicant did not make timely renewal because of service in the uniformed services, temporary incapacity, hospitalization, or other hardship. (c) A person whose public adjuster's license has expired is prohibited from acting as a public adjuster until the effective date of reinstatement of the license. (d) (1) If a person applies for reinstatement of an expired license within 60 days after the license expired, the Commissioner shall reinstate the license retroactively, with the reinstatement effective on the date that the person's license expired. (2) If a person applies for reinstatement of an expired license more than 60 days after the license expired, the Commissioner shall reinstate the person's license prospectively, with the reinstatement effective on the date that the license is reinstated. (e) A person who does not comply with subsection (a) of this section on or before 1 year after the expiration date shall apply for a license under Sec. 10-405 of this subtitle and meet the requirements specified by the Commissioner in regulation. (f) The Commissioner may adopt regulations to carry out this section. #### Section 10-409 (a) (1) Except as otherwise provided in this section, the Commissioner shall waive the license requirements for an applicant who is not a resident of the State if: (i) the applicant has a valid public adjuster license from the home state of the applicant; and (ii) the home state of the applicant awards nonresident public adjuster licenses to residents of the State on the same basis. (2) If neither the state where the public adjuster maintains a principal place of residence nor the state where the public adjuster maintains a principal place of business has a law governing public adjusters substantially similar to this subtitle, the public adjuster may declare another state where the public adjuster is licensed and acts as a public adjuster to be the public adjuster's home state for purposes of this subtitle. (b) Unless denied a license under Sec. 10-410 of this subtitle, a person who is not a resident of the State may obtain a nonresident license to act as a public adjuster if: (1) the person currently is licensed as a resident public adjuster and in good standing in the person's home state; (2) the person files an application on the form that the Commissioner provides; (3) the person has paid the applicable fee pursuant to Sec. 2-112 of this article; and (4) the person's home state awards nonresident public adjuster licenses to residents of this State on the same basis. (c) A person who is not a resident of this State and whose home state does not issue a public adjuster license must meet the license requirements of Sec.Sec. 10-404 and 10-405 of this subtitle. #### Section 10-409.1 (a) Except as otherwise expressly provided by law, a person may not pay, allow, or give, or offer to pay, allow, or give, directly or indirectly, any valuable consideration to an insured as an inducement to use the services of a public adjuster. (b) A public adjuster may pay a commission, service fee, or any other valuable consideration to a person only if that person is required to be licensed, and is licensed, as a public adjuster. (c) A person may not accept a commission, service fee, or any other valuable consideration if the person is required to be licensed, but is not licensed, as a public adjuster. #### Section 10-410 (a) The Commissioner may deny a license to an applicant or suspend, revoke, or refuse to renew or reinstate a license after notice and opportunity for a hearing under Sec.Sec. 2-210 through 2-214 of this article if the applicant or licensee: (1) has violated this article; (2) has made a material misstatement in the application for the license; (3) has engaged in fraudulent or dishonest practices; (4) has demonstrated incompetency or untrustworthiness to act as a public adjuster; (5) has misappropriated, converted, or unlawfully withheld money that belongs to an insurer, insurance producer, insured, or other person; (6) has willfully and materially misrepresented the provisions of a policy; (7) has been convicted of a felony, a crime of moral turpitude, or any criminal offense involving dishonesty or breach of trust; (8) has willfully failed to comply with or has willfully violated a proper order or regulation of the Commissioner; (9) has failed or refused to pay on demand money that belongs to an insurer, insurance producer, insured, or other person entitled to the money; (10) is not carrying on or does not intend to carry on business in good faith while representing to the public that the person is a public adjuster; (11) has been denied a license or has had a license suspended or revoked in another state; or (12) has knowingly employed or knowingly continued to employ an individual acting in a fiduciary capacity who has been convicted within the preceding 10 years of a felony or crime of moral turpitude. (b) (1) The Commissioner may deny a license to a business entity applicant or suspend, revoke, or refuse to renew or reinstate the license of a business entity after notice and opportunity for a hearing under Sec.Sec. 2-210 through 2-214 of this article, if an individual listed in paragraph (2) of this subsection: (i) violates any provision of this article; (ii) is convicted of a felony, a crime of moral turpitude, or any criminal offense involving dishonesty or breach of trust; or (iii) has any professional license suspended or revoked for a fraudulent or dishonest practice. (2) The sanctions provided for under this subsection may be imposed on a business entity if the violation was committed by an individual who: (i) is a public adjuster employed by the business entity; (ii) (1) in the case of a limited liability company, is an officer, director, member, or manager; (2) in the case of a partnership, is a partner; and (3) in the case of a corporation, is a director, officer, or controlling owner; or (iii) has direct control over the fiscal management of the business entity. (c) Instead of or in addition to suspending or revoking the license of a public adjuster, the Commissioner may impose on the licensee a penalty of not less than $100 but not exceeding $5,000 for each violation of this article. (d) Instead of or in addition to suspending or revoking the license, the Commissioner may require that restitution be made to any citizen who has suffered financial injury because of the violation of this article. (e) If the license is suspended under this section, the Commissioner may require the individual to pass an examination and file a new application before the suspension is lifted. #### Section 10-411 (a) A contract for public adjuster services shall: (1) be in writing; (2) be titled "Public Adjuster Contract"; and (3) contain the following: (i) the legible full name of the public adjuster signing the contract, as specified in the records of the Administration; (ii) the permanent business address and phone number of the public adjuster in the public adjuster's home state; (iii) the license number issued by the Administration to the public adjuster; (iv) the insured's full name, street address, insurance company name, and policy number, if known or on notification; (v) a description of the loss and the location of the loss, if applicable; (vi) a description of services to be provided to the insured; (vii) the signatures of the public adjuster and the insured; (viii) the dates when the contract was signed by the public adjuster and the insured, respectively; (ix) notification to the insured that: (1) the public adjuster may incur out-of-pocket expenses on behalf of the insured; and (2) these expenses incurred by the public adjuster and approved by the insured will be reimbursed to the public adjuster from the insurance proceeds; and (x) the full salary, fee, commission, compensation, or other consideration the public adjuster is to receive for services. (b) (1) The public adjuster contract may specify that the public adjuster be named as a co-payee on an insurer's payment of a claim. (2) If the compensation is based on a share of the insurance settlement, the public adjuster contract shall specify the exact percentage to be paid. (3) (i) A compensation provision in a public adjuster contract may not be redacted in any copy of the contract provided to the Commissioner. (ii) A redaction of a compensation provision constitutes an omission of material fact in violation of this subtitle. (c) If the insurer, within 72 hours after the time the loss is reported to the insurer, either pays or commits in writing to pay to the insured the policy limit of the insurance policy, the public adjuster: (1) may not receive a commission consisting of a percentage of the total amount paid by an insurer to resolve a claim; (2) shall inform the insured that loss recovery amount might not be increased by the insurer; and (3) may be entitled only to reasonable compensation from the insured for services the public adjuster provides on behalf of the insured, based on the time spent on a claim and expenses incurred by the public adjuster, until the claim is paid or the insured receives a written commitment to pay from the insurer. (d) (1) A public adjuster shall provide to the insured a written disclosure signed by the public adjuster and the insured concerning any direct or indirect financial interest that the public adjuster or any immediate family member of the public adjuster has with any other party that is involved in any aspect of the claim, other than the salary, fee, commission, or other consideration established in the written contract with the insured. (2) The disclosure shall include any ownership of, or any compensation expected to be received from, any construction firm, salvage firm, building appraisal firm, motor vehicle repair shop, or any other firm that provides estimates for work, or that performs any work, in conjunction with damages caused by the insured loss on which the public adjuster is engaged. (e) A public adjuster contract may not contain any provision that: (1) allows the public adjuster's percentage fee to be collected when money is due from, but not yet paid by, an insurance company; (2) allows a public adjuster to collect the entire fee from the first check issued by an insurance company, rather than as a percentage of each check issued by an insurance company; (3) requires the insured to authorize an insurance company to issue a check only in the name of the public adjuster; or (4) precludes either party from pursuing any civil remedy. (f) Before the signing of the public adjuster contract, the public adjuster shall provide the insured with a separate disclosure document signed by the insured regarding the claim process that substantially states: "(1) Property insurance policies obligate the insured to present a claim to the insurance company for consideration. There are three types of adjusters that could be involved in that process. The definitions of the three types are: (i) "Company adjuster" means an insurance adjuster who is an employee of an insurance company. A company adjuster represents the interest of the insurance company and is paid by the insurance company. A company adjuster will not charge you a fee. (ii) "Independent adjuster" means an insurance adjuster who is hired on a contractual basis by an insurance company to represent the insurance company's interest in the settlement of the claim. An independent adjuster is paid by your insurance company. An independent adjuster will not charge you a fee. (iii) "Public adjuster" means an insurance adjuster who does not work for any insurance company. A public adjuster works for the insured to assist in the preparation, presentation, and settlement of a claim. The insured hires a public adjuster by signing a contract agreeing to pay the public adjuster a fee or commission based on a percentage of the settlement, or another method of compensation. (2) The insured is not required to hire a public adjuster to help the insured meet the insured's obligations under the policy but has the right to do so. (3) The insured has the right to initiate direct communications with the insured's attorney, the insurer, the insurer's adjuster, the insurer's attorney, or any other person regarding the settlement of the insured's claim. (4) A public adjuster is not a representative or an employee of the insurer. (5) The salary, fee, commission, or other consideration of a public adjuster is the obligation of the insured, not the insurer.". (g) (1) The public adjuster contract shall be executed in duplicate to provide an original contract to the public adjuster and an original contract to the insured. (2) The public adjuster's original contract shall be available at all times for inspection without notice by the Commissioner. (3) A contract with an electronic signature shall constitute an original contract. (h) The public adjuster contract shall contain a statement that: (1) the insured has the right to rescind or cancel the contract within 10 business days after the date the contract was signed; (2) the notice of rescission or cancellation shall be in writing and mailed or delivered to the public adjuster at the address stated in the contract within the time period specified in item (1) of this subsection; (3) if the insured exercises the right to rescind or cancel the contract, the public adjuster shall, within 15 business days after the public adjuster receives the notice, return anything of value given by the insured under the contract; and (4) provides a notice to the insured that a public adjuster, or anyone acting on behalf of a public adjuster, may not solicit or attempt to solicit a client between the hours of 8:00 p.m. and 8:00 a.m. (i) The public adjuster shall give the insured written notice of the insured's rights under the Maryland Consumer Protection Act. #### Section 10-412 A public adjuster who receives, accepts, or holds any funds on behalf of an insured toward the settlement of a claim for loss or damage shall deposit the funds in a noninterest-bearing escrow or trust account in a financial institution that is federally insured in the public adjuster's home state or where the loss occurred. #### Section 10-413 (a) (1) A public adjuster shall maintain a complete record of each transaction entered into as a public adjuster. (2) The records required by this section shall include: (i) the name of the insured; (ii) the date, location, and amount of the loss; (iii) a copy of the contract between the public adjuster and the insured; (iv) the name of the insurer and the amount, expiration date, and number of each policy carried with respect to the loss; (v) an itemized statement of the insured's recoveries; (vi) an itemized statement of all compensation received by the public adjuster, from any source, in connection with the loss; (vii) a register of all money received, deposited, disbursed, or withdrawn in connection with a transaction with an insured, including: (1) fees, transfers, and disbursements from a trust account; and (2) all transactions concerning all interest-bearing accounts; (viii) the name of the public adjuster who executed the public adjuster contract; (ix) the name of the attorney representing the insured, if applicable; and (x) the name of the claims representative of the insurance company. (b) (1) The records shall be: (i) maintained for at least 5 years after the termination of the transaction with an insured; and (ii) open to examination by the Commissioner at all times. (2) Any records required to be maintained under this section may be stored in an electronic format. (c) Records submitted to the Commissioner in accordance with this section that contain information that the public adjuster identifies in writing as proprietary: (1) shall be treated as confidential by the Commissioner; and (2) may not be subject to Title 4, Subtitle 2 of the General Provisions Article. #### Section 10-414 (a) A public adjuster is obligated to: (1) serve with objectivity and complete loyalty the interest of the client alone; (2) render to the insured the information, counsel, and service that will best serve the insured's insurance claim needs and interests, within the knowledge, understanding, and opinion in good faith of the public adjuster; and (3) disburse insurance settlement payments received on behalf of the insured within 15 business days after the date of the payment from an insurer. (b) A public adjuster may not allow an unlicensed employee or representative of the public adjuster to conduct business for which a license is required under this subtitle. (c) Unless full written disclosure has been made to the insured in accordance with Sec. 10-411 of this subtitle, a public adjuster may not have a direct or indirect financial interest in any aspect of a claim, other than the salary, fee, commission, or other consideration established in the written contract with the insured. (d) A public adjuster may not acquire any interest in salvage of property subject to a public adjuster contract with the insured unless the public adjuster obtains written permission from the insured. (e) A public adjuster, or anyone acting on behalf of a public adjuster, may not solicit or attempt to solicit a client between the hours of 8:00 p.m. and 8:00 a.m. (f) (1) A public adjuster who enters into a public adjuster contract during, or within 72 hours after, the loss giving rise to an insurance claim shall provide notice to the Commissioner that the public adjuster has entered into the contract. (2) The notice required under paragraph (1) of this subsection shall be: (i) provided to the Commissioner within 1 business day after the public adjuster enters into the contract; and (ii) in a form and manner the Commissioner determines. #### Section 10-415 (a) A public adjuster shall adhere to the following general ethical requirements: (1) a public adjuster may not undertake the adjustment of any claim if the public adjuster is not competent and knowledgeable as to the terms and conditions of the insurance coverage, or that otherwise exceeds the public adjuster's current expertise; (2) a public adjuster may not make a statement that the public adjuster knows to be false or with reckless disregard as to the statement's truth or falsity concerning the qualifications or integrity of any person engaged in the business of insurance to any insured client or potential insured client; (3) a public adjuster may not represent or act as a company adjuster or as an independent adjuster on the same claim; (4) the public adjuster contract may not be construed to prevent an insured from pursuing any civil remedy after the rescission or cancellation period under Sec. 10-411(h) of this subtitle; and (5) a public adjuster may not enter into a contract or accept a power of attorney that vests in the public adjuster the effective authority to choose the persons who shall perform repair work. (b) A public adjuster may not agree to any loss settlement without the insured's knowledge and consent. #### Section 10-416 (a) (1) A public adjuster shall report to the Commissioner, within 30 days after the final disposition of the matter, any administrative action taken against the public adjuster in another jurisdiction, or by another governmental unit in the State. (2) The report shall include: (i) a copy of any order; (ii) any consent to an order; and (iii) any other relevant legal documents. (b) (1) Within 30 days after the initial pretrial hearing date, a public adjuster shall report to the Commissioner any criminal prosecution of the public adjuster undertaken in any jurisdiction. (2) The report shall include: (i) a copy of the initial filed complaint; (ii) any order resulting from the hearing; and (iii) any other relevant legal documents. ### Subtitle 5. Vehicle Damage Adjusters and Appraisers #### Section 10-501 In this subtitle, "adjuster" or "appraiser" means a person that: (1) is employed by an insurer as, solicits business as, or represents to an insurer that the person is an adjuster or appraiser of claims for loss or damage covered by a motor vehicle insurance policy; or (2) under a contract, performs adjustments or appraisals for loss or damage covered by another form of security provided for under Sec. 17-103(a)(2) of the Transportation Article. #### Section 10-502 This subtitle does not: (1) require an insurer to pay an amount for motor vehicle repair services or repair products necessary to properly and fairly repair a motor vehicle that is greater than the usual and customary charges for equivalent services or products charged by similar contractors or repair shops within a reasonable geographic or trade area of the address of the claimant or insured; or (2) prohibit an insurer from requiring a claimant or an insured to obtain an appraisal by driving a damaged motor vehicle to a facility that is owned or leased by or under contract to the insurer and is used exclusively for damage appraisals. #### Section 10-503 (a) An adjuster, appraiser, or insurance producer or employee of an insurer may not: (1) recommend the use of a specific repair service or source for the repair or replacement of property damage to a motor vehicle without informing the claimant or insured that the claimant or insured does not have to use the recommended repair service or source; (2) require that an appraisal or repair be made in a specific repair shop; (3) require that a claimant or insured use a specific contractor or repair shop for a repair service or repair product; or (4) intimidate, coerce, or threaten a claimant or insured to use a specific contractor or repair shop for a repair service or repair product. (b) An adjuster or appraiser may not accept a gratuity or other form of remuneration from a repair service for recommending that repair service to a claimant or insured. #### Section 10-504 A person that intentionally violates this subtitle is subject to: (1) a civil penalty not exceeding $1,000 for each violation; and (2) denial, suspension, or revocation of any license held under this article. ### Subtitle 6. Motor Vehicle Rental Companies #### Section 10-601 (a) In this subtitle the following words have the meanings indicated. (b) "Authorized representative" means an independent contractor of a motor vehicle rental company. (c) (1) "Motor vehicle rental company" means any person that is in the business of providing motor vehicles to the public under a rental agreement for a period of 180 days or less. (2) "Motor vehicle rental company" does not include a peer-to-peer car sharing program as defined in Sec. 19-520 of this article. (d) "Rental agreement" means any written agreement containing the terms and conditions that govern the use of a vehicle provided by a motor vehicle rental company under the provisions of Title 18 of the Transportation Article. (e) "Renter" means any person obtaining the use of a vehicle from a motor vehicle rental company under the terms of a rental agreement. (f) "Vehicle" means a motor vehicle: (1) of the private passenger type, including passenger vans, minivans, and sport utility vehicles; or (2) of the cargo type, including cargo vans, pickup trucks, and trucks that do not require the operator to possess a commercial driver's license. #### Section 10-602 (a) A motor vehicle rental company shall hold a limited lines license to sell insurance in connection with, and incidental to, the rental of a vehicle before the company or its employees or authorized representatives may sell or offer any policies of insurance in this State to a renter in connection with, and incidental to, a rental agreement. (b) A limited lines license to sell insurance in connection with, and incidental to, the rental of a vehicle issued under this subtitle shall also authorize any employee and any authorized representative of the motor vehicle rental company who is trained, under Sec. 10-604(a)(4) of this subtitle, to act on behalf of, and under the supervision of, a motor vehicle rental company, with respect to the kinds of insurance specified in Sec. 10-604(b)(2) of this subtitle. (c) The acts of an employee or authorized representative offering or selling insurance coverage on behalf of a motor vehicle rental company shall be deemed the acts of the motor vehicle rental company for the purposes of this subtitle. (d) A motor vehicle rental company holding a limited lines license to sell insurance in connection with, and incidental to, the rental of a vehicle issued under this subtitle is not required to treat premiums collected from a renter that purchased insurance from the motor vehicle rental company as funds received in a fiduciary capacity if: (1) the insurer represented by the motor vehicle rental company has consented in a written agreement, signed by an officer of the insurer, that the premiums do not need to be segregated from other funds received by the motor vehicle rental company in connection with the vehicle rental; and (2) the charges for insurance coverage are itemized but not billed to the renter separately from the charges for the vehicle rental. (e) An employee or an authorized representative of a motor vehicle rental company who offers or sells insurance coverage on behalf of the motor vehicle rental company: (1) may be compensated for offering or selling insurance coverage under this subtitle; but (2) may not be compensated in a manner that is based solely on the number of customers who purchase rental vehicle insurance. (f) This subtitle may not be construed to prohibit payment of compensation to an employee or an authorized representative of a motor vehicle rental company who offers or sells insurance coverage on behalf of the motor vehicle rental company for activities that are incidental to the employee's overall activities. (g) A motor vehicle rental company that holds a limited lines license to sell insurance in connection with, and incidental to, the rental of a vehicle issued under this subtitle shall: (1) maintain a register, on a form the Commissioner requires, containing: (i) the names of each employee or authorized representative who offers limited lines insurance on behalf of the motor vehicle rental company; and (ii) the business addresses of all locations in the State where employees or authorized representatives offer limited lines insurance on behalf of the motor vehicle rental company; and (2) submit the register for inspection by the Commissioner as the Commissioner requires. #### Section 10-603 (a) The Commissioner shall issue to a motor vehicle rental company, or a franchisee of a motor vehicle rental company, a limited lines license authorizing the motor vehicle rental company to offer or sell insurance in connection with, and incidental to, the rental of a vehicle if the motor vehicle rental company: (1) meets the requirements of Sec. 10-604 of this subtitle; (2) pays the fees for insurance producers required under Sec. 2-112 of this article that are applicable to an insurance producer license; and (3) submits to the Commissioner any additional information or documentation that the Commissioner requires, including any information or documentation to determine the professional competence, good character, and trustworthiness of the motor vehicle rental company. (b) A limited lines license to sell insurance in connection with, and incidental to, the rental of a vehicle issued under this subtitle is subject to the same term and renewal conditions specified for an insurance producer license under Sec. 10-115 of this title. #### Section 10-604 (a) A limited lines license to sell insurance in connection with, and incidental to, the rental of a vehicle issued under this subtitle authorizes the motor vehicle rental company to offer or sell, in connection with, and incidental to, a motor vehicle rental agreement in which the rental period does not exceed 30 days, the insurance products specified in paragraph (b) of this section if: (1) the policies have been filed with and approved by the Commissioner; (2) the motor vehicle rental company holds an appointment with each authorized insurer, under Sec. 10-118 of this title, that the motor vehicle rental company intends to represent; (3) prior to completion of the rental transaction, an employee or authorized representative of the motor vehicle rental company provides to the renter disclosures approved by the Commissioner that: (i) summarize, clearly and correctly, the material terms of coverage, including limitations or exclusions; (ii) identify the authorized insurer or insurers; (iii) specify that the policies offered by the motor vehicle rental company may provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage; (iv) specify that the purchase of the coverages offered by the motor vehicle rental company is not required in order for the renter to rent a vehicle; (v) describe the process by which the renter can file a claim; and (vi) specify that any excess liability coverage purchased by the renter may duplicate coverage required to be provided under Sec. 18-102(a)(2) of the Transportation Article; (4) the motor vehicle rental company provides a training program, approved by the Commissioner, for any employee or authorized representative who sells, solicits, or negotiates insurance coverage under this subtitle that includes: (i) instruction about the kinds of insurance specified in subsection (b) of this section that can be offered to renters; (ii) instruction that the trainee shall inform a renter that the purchase of any insurance from the motor vehicle rental company is not required in order for the renter to rent a vehicle; and (iii) instruction that the trainee shall inform a renter that the renter may have insurance policies that already provide the coverage being offered by the motor vehicle rental company; and (5) an employee or authorized representative who offers or sells insurance coverage on behalf of the motor vehicle rental company informs a renter that the policies offered by the motor vehicle rental company may duplicate coverage already provided by the renter's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage. (b) A limited lines license to sell insurance in connection with, and incidental to, the rental of a vehicle issued under this subtitle authorizes the motor vehicle rental company to offer or sell insurance policies under this subtitle that are: (1) in excess of or optional to the coverages required to be provided by the motor vehicle rental company under Title 17 of the Transportation Article and any related regulations; and (2) one of the following kinds of insurance: (i) bodily injury liability; (ii) property damage liability; (iii) uninsured motorist insurance; or (iv) if approved by the Commissioner, any other insurance coverage that is appropriate in connection with the rental of a vehicle. #### Section 10-605 (a) Except as provided in subsection (b) of this section, an insurance policy sold in connection with, and incidental to, the rental of a vehicle under the provisions of this subtitle is primary to any other valid and collectible coverage. (b) Any insurance sold to a renter under the provisions of this subtitle is not primary to the coverages provided by the motor vehicle rental company on the rental vehicle under Sec. 17-103(b) of the Transportation Article. #### Section 10-606 (a) The Commissioner may suspend, revoke, or refuse to renew a limited lines license to sell insurance in connection with, and incidental to, the rental of a vehicle issued under this subtitle after notice and opportunity for a hearing under Title 2, Subtitle 2 of this article if the motor vehicle rental company or an employee or authorized representative of the motor vehicle rental company has: (1) willfully violated this article or another law of the State that relates to insurance; (2) operated without a limited lines license to sell insurance in connection with, and incidental to, the rental of a motor vehicle as required under this subtitle; (3) failed to provide required disclosures; (4) offered or sold unapproved insurance products; (5) failed to hold an appointment with the insurer; (6) failed to train employees and authorized representatives selling or soliciting, or negotiating the sale of, insurance products on behalf of the motor vehicle rental company; or (7) misrepresented pertinent facts or policy provisions that relate to the coverage offered or sold pursuant to this subtitle. (b) A motor vehicle rental company and its employees and authorized representatives may not advertise, represent, or otherwise hold itself out as an authorized insurer, or as an insurance producer, for any kind or subdivision of insurance. (c) Instead of, or in addition to, suspending or revoking the limited lines license to sell insurance in connection with, and incidental to, the rental of a vehicle, the Commissioner may: (1) impose on the motor vehicle rental company a penalty of not less than $100 but not more than $2,500 for each violation of this subtitle; and (2) require that restitution be made to any person who has suffered financial injury because of the violation of this article. #### Section 10-607 The Commissioner may adopt regulations to carry out the provisions of this subtitle, including regulations concerning the form and content of required disclosures to renters, the training requirements for employees and authorized representatives of motor vehicle rental companies, and the qualifications of the individuals who provide training for employees and authorized representatives of motor vehicle rental companies. ### Subtitle 6A. Peer-to-peer Car Sharing Programs #### Section 10-6A-01 (a) In this subtitle the following words have the meanings indicated. (b) "Authorized representative" means an independent contractor of a peer-to-peer car sharing program. (c) "Car sharing period" has the meaning stated in Sec. 19-520 of this article. (d) "Peer-to-peer car sharing program" means a peer-to-peer car sharing program, as defined in Sec. 19-520 of this article, that sells or offers a motor vehicle liability insurance policy issued by an insurer under Sec. 19-520 of this article. (e) "Peer-to-peer car sharing program agreement" has the meaning stated in Sec. 19-520 of this article. (f) "Shared vehicle driver" has the meaning stated in Sec. 19-520 of this article. (g) "Vehicle" means a motor vehicle: (1) of the private passenger type, including passenger vans, minivans, and sport utility vehicles; or (2) of the cargo type, including cargo vans, pickup trucks, and trucks that do not require the operator to possess a commercial driver's license. #### Section 10-6A-02 (a) A peer-to-peer car sharing program shall hold a limited lines license to sell insurance in connection with, and incidental to, the reservation of a shared motor vehicle through the peer-to-peer car sharing program before the peer-to-peer car sharing program or its employees or authorized representatives may sell or offer any policies of insurance in the State to a shared vehicle driver in connection with, and incidental to, a peer-to-peer car sharing program agreement. (b) A limited lines license issued under this subtitle to sell insurance in connection with, and incidental to, the peer-to-peer car sharing program agreement shall authorize any employee and any authorized representative of the peer-to-peer car sharing program who is trained, under Sec. 10-6A-04(a)(4) of this subtitle, to act on behalf of, and under the supervision of, a peer-to-peer car sharing program, with respect to the kinds of insurance specified in Sec. 10-6A-04(b)(2) of this subtitle. (c) The acts of an employee or authorized representative offering or selling insurance coverage on behalf of a peer-to-peer car sharing program shall be deemed the acts of the peer-to-peer car sharing program for the purposes of this subtitle. (d) A peer-to-peer car sharing program holding a limited lines license issued under this subtitle to sell insurance in connection with, and incidental to, the peer-to-peer car sharing program agreement is not required to treat premiums collected from a shared vehicle driver who purchased insurance from the peer-to-peer car sharing program as funds received in a fiduciary capacity if: (1) the insurer represented by the peer-to-peer car sharing program has consented in a written agreement, signed by an officer of the insurer, that the premiums do not need to be segregated from other funds received by the peer-to-peer car sharing program under the peer-to-peer car sharing program agreement; and (2) the charges for insurance coverage are itemized but not billed to the shared vehicle driver separately from the charges for the car sharing period. (e) An employee or an authorized representative of a peer-to-peer car sharing program who offers or sells insurance coverage on behalf of the peer-to-peer car sharing program: (1) may be compensated for offering or selling insurance coverage under this subtitle; but (2) may not be compensated in a manner that is based solely on the number of customers who purchase motor vehicle liability insurance. (f) This subtitle may not be construed to prohibit payment of compensation to an employee or an authorized representative of a peer-to-peer car sharing program who offers or sells insurance coverage on behalf of the peer-to-peer car sharing program for activities that are incidental to the employee's overall activities. (g) A peer-to-peer car sharing program that holds a limited lines license to sell insurance in connection with, and incidental to, the peer-to-peer car sharing of a motor vehicle issued under this subtitle shall: (1) maintain a register, on a form the Commissioner requires, containing: (i) the names of each employee or authorized representative who offers limited lines insurance on behalf of the peer-to-peer car sharing program; and (ii) the business addresses of all locations where employees or authorized representatives offer limited lines insurance on behalf of the peer-to-peer car sharing program for car sharing agreements entered into in the State; and (2) submit the register for inspection by the Commissioner as the Commissioner requires. #### Section 10-6A-03 (a) The Commissioner shall issue to a peer-to-peer car sharing program, or a franchisee of a peer-to-peer car sharing program, a limited lines license authorizing the peer-to-peer car sharing program to offer or sell insurance in connection with, and incidental to, a peer-to-peer car sharing program agreement if the peer-to-peer car sharing program: (1) meets the requirements of Sec. 10-6A-04 of this subtitle; (2) pays the fees for insurance producers required under Sec. 2-112 of this article that are applicable to an insurance producer license; and (3) submits to the Commissioner any additional information or documentation that the Commissioner requires, including any information or documentation needed to determine the professional competence, good character, and trustworthiness of the peer-to-peer car sharing program. (b) A limited lines license to sell insurance in connection with, and incidental to, the peer-to-peer car sharing of a motor vehicle issued under this subtitle is subject to the same term and renewal conditions specified for an insurance producer license under Sec. 10-115 of this title. #### Section 10-6A-04 (a) A limited lines license to sell insurance in connection with, and incidental to, the peer-to-peer car sharing program agreement issued under this subtitle authorizes the peer-to-peer car sharing program to offer or sell, in connection with, and incidental to, a peer-to-peer car sharing program agreement, the insurance products specified in subsection (b) of this section if: (1) the policies have been filed with and approved by the Commissioner as compliant with Sec. 19-520(d) of this article; (2) the peer-to-peer car sharing program holds an appointment with each authorized insurer, under Sec. 10-118 of this title, that the peer-to-peer car sharing program intends to represent; (3) prior to completion of the peer-to-peer car sharing transaction, an employee or authorized representative of the peer-to-peer car sharing program provides to the shared vehicle driver disclosures approved by the Commissioner that: (i) summarize, clearly and correctly, the material terms of coverage, including limitations or exclusions; (ii) identify the authorized insurer or insurers; (iii) specify that the policies offered by the peer-to-peer car sharing program may provide a duplication of coverage already provided by a shared vehicle driver's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage; (iv) specify that the purchase of the coverage offered by the peer-to-peer car sharing program is not required in order for the shared vehicle driver to participate in the peer-to-peer car share; (v) describe the process by which the shared vehicle driver can file a claim; and (vi) specify that any excess liability coverage purchased by the shared vehicle driver may duplicate coverage required to be provided under Sec. 18.5-102 of the Transportation Article; (4) the peer-to-peer car sharing program provides a training program, approved by the Commissioner, for each employee or authorized representative who sells, solicits, or negotiates insurance coverage under this subtitle that includes: (i) instruction about the kinds of insurance specified in subsection (b) of this section that can be offered to shared vehicle drivers; (ii) instruction that the employee or authorized representative is required to inform a shared vehicle driver that the purchase of any insurance from the peer-to-peer car sharing program is not required in order for the shared vehicle driver to participate in the peer-to-peer car share; and (iii) instruction that the employee or authorized representative is required to inform a shared vehicle driver that the shared vehicle driver may have insurance policies that already provide the coverage being offered by the peer-to-peer car sharing program; and (5) an employee or authorized representative who offers or sells insurance coverage on behalf of the peer-to-peer car sharing program informs a shared vehicle driver that the policies offered by the peer-to-peer car sharing program may duplicate coverage already provided by the shared vehicle driver's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage. (b) A limited lines license to sell insurance in connection with, and incidental to, a peer-to-peer car sharing program agreement issued under this subtitle authorizes the peer-to-peer car sharing program to offer or sell insurance policies under this subtitle that are: (1) in the amount of, in excess of, or optional to the coverages required to be provided under Sec. 19-520(d)(1) of this article; and (2) one of the following kinds of insurance: (i) bodily injury liability; (ii) property damage liability; (iii) uninsured motorist insurance; or (iv) if approved by the Commissioner, any other insurance coverage that is appropriate in connection with a peer-to-peer car sharing program agreement. #### Section 10-6A-06 (a) The Commissioner may refuse to issue a limited lines license or suspend, revoke, or refuse to renew a limited lines license to sell insurance in connection with, and incidental to, a peer-to-peer car sharing program agreement issued under this subtitle after notice and opportunity for a hearing under Title 2, Subtitle 2 of this article if the peer-to-peer car sharing program or an employee or authorized representative of the peer-to-peer car sharing program has: (1) willfully violated this article or another State law that relates to insurance; (2) operated without a limited lines license to sell insurance in connection with, and incidental to, a peer-to-peer car sharing program agreement as required under this subtitle; (3) failed to provide required disclosures; (4) offered or sold unapproved insurance products; (5) failed to hold an appointment with the insurer; (6) failed to train employees and authorized representatives selling or soliciting, or negotiating the sale of, insurance products on behalf of the peer-to-peer car sharing program; or (7) misrepresented pertinent facts or policy provisions that relate to the coverage offered or sold under this subtitle. (b) A peer-to-peer car sharing program and its employees and authorized representatives may not advertise, represent, or otherwise hold itself out as an authorized insurer, or as an insurance producer, for any kind or subdivision of insurance. (c) Instead of, or in addition to, suspending or revoking a limited lines license to sell insurance in connection with, and incidental to, a peer-to-peer car sharing program agreement, the Commissioner may: (1) impose on the peer-to-peer car sharing program a penalty of not less than $100 but not more than $2,500 for each violation of this subtitle; and (2) require that restitution be made to any person who has suffered financial injury because of the violation of this article. #### Section 10-6A-07 The Commissioner may adopt regulations to carry out the provisions of this subtitle, including regulations concerning: (1) the form and content of required disclosures to shared vehicle drivers; (2) the training requirements for employees and authorized representatives of a peer-to-peer car sharing program; and (3) the qualifications of the individuals who provide training for employees and authorized representatives of a peer-to-peer car sharing program. ### Subtitle 7. Portable Electronics Vendors #### Section 10-701 (a) In this subtitle the following words have the meanings indicated. (b) "Covered customer" means a customer who elects to purchase coverage under a policy of portable electronics insurance issued to a vendor. (c) "Customer" means a person who purchases or leases portable electronics or purchases service related to the use of portable electronics. (d) "Location" means: (1) a physical location in the State; or (2) a website, call center site, or similar location where coverage under a policy of portable electronics insurance is offered or sold to residents of the State. (e) (1) "Portable electronics" means: (i) an electronic device, including its accessories, that: (1) is easily or conveniently transported by hand by an individual; and (2) is used for communication, viewing, listening, recording, gaming, computing, or global positioning; and (ii) any other electronic device that is portable in nature that the Commissioner approves. (2) "Portable electronics" includes: (i) cellular or satellite phones; (ii) pagers; (iii) personal global positioning satellite units; (iv) portable computers; (v) portable audio listening, video viewing, or recording devices; (vi) digital cameras; (vii) video camcorders; (viii) portable gaming systems; (ix) docking stations; and (x) automatic answering devices. (3) "Portable electronics" does not include telecommunications switching equipment, transmission wires, cell site transceiver equipment, or other equipment and systems used by telecommunications companies to provide telecommunications service to consumers. (f) (1) "Portable electronics insurance" means insurance that provides coverage for the repair or replacement of portable electronics, including coverage against one or more of the following causes of loss: (i) loss by disappearance; (ii) theft; (iii) mechanical failure; (iv) malfunction; (v) damage; and (vi) any other applicable peril, as approved by the Commissioner. (2) "Portable electronics insurance" does not include: (i) a service contract governed by Title 14, Subtitle 4 of the Commercial Law Article that does not include coverage for loss by disappearance or theft; (ii) a policy of insurance covering a seller's or a manufacturer's obligations under a warranty; or (iii) a homeowner's, renter's, motor vehicle, or similar policy that covers loss or theft of portable electronics. (g) "Portable electronics transaction" means: (1) the sale or lease of portable electronics by a vendor to a customer; or (2) the sale of service related to the use of portable electronics by a vendor to a customer. (h) "Supervising entity" means a business entity that is: (1) an authorized insurer; or (2) a licensed insurance producer that is appointed by an insurer to supervise the administration of a portable electronics insurance program. (i) "Vendor" means a person in the business of leasing, selling, or providing portable electronics, or selling or providing service related to the use of portable electronics, to customers in the State. #### Section 10-702 This subtitle does not apply to: (1) a service contract governed by Title 14, Subtitle 4 of the Commercial Law Article that does not include coverage for loss by disappearance or theft; (2) a policy of insurance covering a seller's or a manufacturer's obligations under a warranty; or (3) a homeowner's, renter's, motor vehicle, or similar policy that covers loss or theft of portable electronics. #### Section 10-703 (a) A vendor shall hold a limited lines license to sell coverage under a policy of portable electronics insurance before the vendor or the employees of or authorized representatives of the vendor may sell or offer to sell coverage under a policy of portable electronics insurance to a customer. (b) A limited lines license issued under this subtitle shall also authorize any salaried or hourly employee or authorized representative of the vendor to sell coverage under a policy of portable electronics insurance to a customer only if the employee or authorized representative is: (1) trained under Sec. 10-705 of this subtitle to act on behalf of the vendor; and (2) acting under the supervision of the vendor. (c) The acts of an employee or authorized representative offering to sell or selling coverage under a policy of portable electronics insurance shall be deemed the acts of the vendor for the purposes of this subtitle. (d) (1) A vendor may bill and collect premiums from covered customers for coverage under a policy of portable electronics insurance. (2) A vendor that bills and collects premiums under this section is not required to maintain the premiums collected in a segregated account if: (i) the vendor's appointing insurer agrees in writing that segregation of funds is not required; (ii) the vendor remits the funds collected to the appointing insurer or that insurer's appointed insurance producer within 60 days after receipt; and (iii) the funds received by the vendor from a covered customer for the sale of portable electronics insurance are held in trust by the vendor in a fiduciary capacity for the benefit of the vendor's appointing insurer. (3) (i) Except as provided in subparagraph (ii) of this paragraph, the premiums for coverage under a policy of portable electronics insurance shall be separately itemized from the charges for the purchase or lease of the portable electronics. (ii) If portable electronics insurance coverage is included in the price of the purchase or lease of portable electronics or related services, the vendor shall provide clear and conspicuous written notice to the customer that the portable electronics insurance coverage is included with the portable electronics or related services. (e) (1) A vendor may receive compensation for billing and collection services under a policy of portable electronics insurance. (2) A vendor or an authorized representative of the vendor may compensate the employees of the vendor or of the authorized representative in a manner that does not depend solely on the sale of portable electronics insurance. #### Section 10-704 (a) The Commissioner shall issue to a vendor a limited lines license authorizing the vendor to sell or offer to sell coverage under a policy of portable electronics insurance to a customer if the vendor: (1) meets the requirements of Sec. 10-705 of this subtitle; (2) pays the fees for insurance producers required under Sec. 2-112 of this article that are applicable to an insurance producer license; and (3) submits to the Commissioner a sworn application for a limited lines license under this subtitle on the form required by the Commissioner. (b) (1) Subject to paragraph (2) of this subsection, a vendor shall provide the name, residence address, and any other information required by the Commissioner for an officer or employee of the vendor who is designated by the vendor as the person responsible for the vendor's compliance with the requirements of this subtitle. (2) If the vendor derived more the 25% of its total revenue in the preceding year from the sale of portable electronics insurance, the vendor shall provide the information required in paragraph (1) of this subsection for all officers, directors, and shareholders of record under the federal securities law. (c) (1) The supervising entity shall maintain a registry of all vendor locations that are authorized to sell or offer portable electronics insurance coverage in the State. (2) On request by the Commissioner, the registry shall be open to inspection and examination no later than 10 days after the request. (d) A limited lines license under this subtitle is subject to the same term and renewal conditions that are specified for an insurance producer license under Sec. 10-115 of this title. #### Section 10-705 (a) A limited lines license to offer or sell coverage under a policy of portable electronics insurance to a customer issued under this subtitle authorizes a vendor or an authorized representative of the vendor to sell coverage under a policy of portable electronics insurance to customers at each location at which the vendor engages in portable electronics transactions in the State if: (1) the portable electronics insurance policies have been filed with and approved by the Commissioner; (2) the vendor holds an appointment under Sec. 10-118 of this title with each authorized insurer that the vendor intends to represent; (3) at each location where coverage under a policy of portable electronics insurance is offered or sold to customers, the vendor provides to the customers disclosures approved by the Commissioner that: (i) summarize the material terms of the coverage under the policy of portable electronics insurance including: (1) the identity of the insurer; (2) the premium to be paid; (3) any applicable deductible; (4) the major features of the benefits of the coverage; and (5) the key terms and conditions of coverage including whether the portable electronics may be repaired or replaced with similar make and model reconditioned or nonoriginal manufacturer parts or equipment; (ii) (1) state that portable electronics insurance may duplicate insurance coverage already provided by a customer's homeowner's insurance policy, renter's insurance policy, or other source of insurance coverage; and (2) state that the purchase of coverage under a policy of portable electronics insurance would make this coverage primary to any other coverage, including duplicate coverage; (iii) state that the purchase of coverage under a policy of portable electronics insurance is not required in order to enter into the portable electronics transaction; (iv) describe the process for filing a claim if the customer elects to purchase coverage under a policy of portable electronics insurance including a description of: (1) any requirement to pay a deductible; (2) any requirement to return portable electronics; (3) the maximum fee applicable if the customer fails to comply with a return requirement; and (4) any requirement to file a proof of loss; (v) state that: (1) the customer may cancel coverage under the portable electronics insurance at any time; and (2) if the customer cancels coverage under the portable electronics insurance, any unearned premium will be refunded to the person paying the premium in accordance with applicable law; and (vi) provide the toll-free consumer hotline telephone number of the Administration; and (4) the vendor provides a training program, approved by the Commissioner, for any employee or authorized representative who sells coverage under a policy of portable electronics insurance to customers under this subtitle that includes instruction: (i) about the portable electronics insurance offered to customers of the vendor; (ii) that the employee or authorized representative may not represent or imply to a customer that purchase of coverage under a policy of portable electronics insurance is required in order to purchase portable electronics; (iii) that portable electronics insurance may duplicate insurance coverage already provided by a customer's homeowner's insurance policy, renter's insurance policy, or other source of insurance coverage; and (iv) about the other disclosures required by item (3) of this subsection. (b) (1) The training required under subsection (a)(4) of this section may be provided in electronic form. (2) If training is conducted in electronic form, the supervising entity shall implement a supplemental education program about the portable electronics insurance product that is conducted and overseen by licensed insurance producers employed by the supervising entity. #### Section 10-706 Coverage under a policy of portable electronics insurance sold under this subtitle is primary to any other valid and collectible coverage. #### Section 10-707 (a) The Commissioner may suspend, revoke, or refuse to renew a limited lines license issued under this subtitle after notice and opportunity for a hearing under Title 2, Subtitle 2 of this article if the vendor or an employee or authorized representative of the vendor has: (1) willfully violated this article or another law of the State that relates to insurance; (2) operated without a limited lines license as required under this subtitle; (3) failed to provide the disclosures required under Sec. 10-705 of this subtitle; (4) offered or sold unapproved insurance products; (5) failed to hold an appointment with an insurer; (6) failed to train employees or authorized representatives as required under Sec. 10-705 of this subtitle; or (7) misrepresented pertinent facts or policy provisions concerning a policy of portable electronics insurance. (b) A vendor and the employees and authorized representatives of the vendor may not advertise, represent, or otherwise hold themselves out as an authorized insurer or as an insurance producer for any kind or subdivision of insurance, except as provided in this subtitle. (c) Instead of, or in addition to, suspending or revoking a limited lines license issued under this subtitle, the Commissioner may: (1) impose on the vendor a penalty of not more than $2,500 for each violation of this subtitle; and (2) require that restitution be made to any person who has suffered financial injury because of a violation of this subtitle. #### Section 10-708 The Commissioner may adopt regulations to carry out this subtitle, including regulations concerning: (1) the form and content of required disclosures to customers; (2) the training requirements for employees and authorized representatives of vendors; and (3) the qualifications of the individuals who provide training. ### Subtitle 8. Self-Service Storage Producers #### Section 10-801 (a) In this subtitle the following words have the meanings indicated. (b) "Authorized representative" means an independent contractor of an owner of a self-service storage facility. (c) "Business entity" has the meaning stated in Sec. 5-511 of this article. (d) "Designated responsible producer" means an individual who: (1) holds a limited lines license under this subtitle; and (2) is designated by the owner as responsible for the owner's compliance with insurance laws, rules, and regulations of the State. (e) "Occupant" means a person or the person's sublessee, successor, or assignee who is entitled to the use of a leased space at a self-service storage facility. (f) "Owner" means the owner of a self-service storage facility. (g) (1) "Personal property" means movable property that is not affixed to land. (2) "Personal property" includes: (i) goods, wares, merchandise, household items, and furnishings; (ii) a vehicle, as defined in Sec. 11-176 of the Transportation Article; and (iii) watercraft and motorized watercraft. (h) "Self-service storage facility" means any real property that is used for renting or leasing storage space in which the occupants themselves customarily store and remove personal property on a self-service basis. (i) "Self-service storage producer" means: (1) an owner of a self-storage facility who holds a limited lines license under this subtitle; or (2) a designated responsible producer. #### Section 10-802 (a) The Commissioner shall issue a limited lines license as a self-service storage producer to: (1) an owner of a self-service storage facility who meets the requirements of this subtitle; and (2) an individual who: (i) is designated by the owner as responsible for the owner's compliance with insurance laws, rules, and regulations of the State; and (ii) meets the requirements of this subtitle. (b) A limited lines license as a self-service storage producer authorizes the licensee to offer or sell insurance only: (1) in connection with and incidental to the rental of storage space at a self-service storage facility on a master, a corporate, a commercial, a group, or an individual policy basis; and (2) with respect to personal property insurance that provides coverage to occupants at the self-service storage facility, for the loss of or damage to stored personal property that occurs at the self-service storage facility. (c) An owner of a self-service storage facility may not offer or sell insurance under this subtitle unless the owner, as a business entity: (1) holds a limited lines license under this subtitle; and (2) has a designated responsible producer. (d) An owner of a self-service storage facility is not required to be licensed under this subtitle merely to display and make available to prospective occupants brochures and other promotional materials created by or on behalf of an authorized insurer provided that the owner does not engage in the sale, solicitation, or negotiation of insurance advertised in the brochures and promotional materials. #### Section 10-803 (a) An applicant for a limited lines license as a self-service storage producer shall file a written application with the Commissioner in the form the Commissioner requires. (b) The application shall include: (1) the physical address of the company headquarters of the self-service storage producer; and (2) a list of all self-service storage facilities where the self-service storage producer will conduct business under the limited lines license. #### Section 10-804 (a) A self-service storage producer is not required to have a separate limited lines license for each self-service storage facility where insurance is offered or sold. (b) A self-service storage producer shall notify the Commissioner of: (1) any additional locations of self-service storage facilities in the State where the self-service storage producer will do business under the limited lines license within 30 days after commencing business at those locations; and (2) those locations of self-service storage facilities in the State where the self-service storage producer will cease to do business under the limited lines license within 30 days after ceasing business at those locations. #### Section 10-805 A self-service storage producer is not required to meet the continuing education requirements for insurance producers under Subtitle 1 of this title. #### Section 10-806 A self-service storage producer may not offer or sell insurance under this subtitle unless: (1) the self-service storage producer makes readily available to prospective occupants brochures or other written materials that: (i) summarize the material terms of insurance coverage offered to occupants, including the identity of the insurer and the price, benefits, deductibles, exclusions, and conditions of the insurance; (ii) disclose that the policies offered by the self-service storage producer may provide coverage that is comparable to coverage already provided by an occupant's homeowner's insurance policy, renter's insurance policy, vehicle insurance policy, watercraft insurance policy, or other type of property insurance coverage; (iii) state whether the purchase of coverage under a policy offered under this subtitle would make the coverage primary to any other coverage, including duplicate coverage; (iv) state that the purchase of insurance coverage is not required as a condition of rental at a self-service storage facility if the occupant presents evidence of other applicable insurance coverage; (v) describe the process for filing a claim; and (vi) include contact information for filing a complaint with the Commissioner; (2) all costs related to the insurance are stated in writing; (3) evidence of coverage in a form approved by the Commissioner is provided to each occupant who purchases the coverage; (4) the insurance is provided by an insurer authorized to transact the applicable kinds of insurance in the State; and (5) as a condition of the sale of insurance, the self-service storage producer: (i) requires the occupant to execute a document acknowledging the amount of coverage under the policy purchased; and (ii) if the occupant has contents in the leased space of a value greater than the coverage under the policy: (1) advises the occupant in writing to contact a property and casualty insurance producer licensed under Subtitle 1 of this title to obtain additional coverage to reflect the value of the contents in the leased space; and (2) requires the occupant to acknowledge receipt of the notice under item 1 of this item. #### Section 10-807 (a) An employee or authorized representative of a self-service storage producer may act on behalf of and under the supervision of the self-service storage producer in matters relating to the conduct of business under a limited lines license issued under this subtitle if the employee or authorized representative receives the training under Sec. 10-808 of this subtitle. (b) The conduct of an employee or authorized representative of a self-service storage producer acting within the scope of employment or agency is considered to be the conduct of the self-service storage producer for purposes of this subtitle. (c) The designated responsible producer: (1) is responsible for the acts of the employees or authorized representatives of the owner who offer or sell limited lines insurance, as authorized under this subtitle, on behalf of the owner; (2) shall use reasonable means to ensure compliance by the employees or authorized representatives with this subtitle; (3) shall maintain a register, on a form the Commissioner requires, of each employee or authorized representative of the owner who offers limited lines insurance on behalf of the owner; and (4) shall submit the register for inspection by the Commissioner within 30 days after receiving a request by the Commissioner for inspection. #### Section 10-808 (a) Each self-service storage producer shall provide a training program approved by the Commissioner for employees and authorized representatives of the self-service storage producer. (b) The training program required by subsection (a) of this section shall: (1) include general information about homeowners, renters, business, and similar insurance that an occupant may have that may provide coverage for property located in a self-storage facility; (2) include information about the material terms of insurance coverage offered to occupants under this subtitle, including the price, benefits, deductibles, exclusions, and conditions of the insurance; (3) provide basic instruction about the provisions of this subtitle; and (4) include any other information the Commissioner may require. #### Section 10-809 A self-service storage producer or any of its employees or authorized representatives may not: (1) offer or sell insurance except in connection with and incidental to the rental of space at a self-service storage facility; or (2) advertise, represent, or otherwise hold themselves out as authorized insurers or licensed insurance producers. #### Section 10-810 (a) The Commissioner may suspend, revoke, or refuse to renew a limited lines license issued under this subtitle after notice and opportunity for a hearing under Title 2, Subtitle 2 of this article if the self-service storage producer or an employee or authorized representative of the self-service storage producer who offers or sells limited lines insurance on behalf of the self-service storage producer has: (1) willfully violated this article or another law of the State that relates to insurance; (2) operated without a limited lines license as required under this subtitle; (3) failed to provide the disclosures required under Sec. 10-806 of this subtitle; (4) offered or sold unapproved insurance products; (5) failed to train employees or authorized representatives as required under Sec. 10-808 of this subtitle; or (6) misrepresented pertinent facts or policy provisions concerning a policy for a self-service storage facility. (b) Instead of, or in addition to, suspending or revoking a limited lines license issued under this subtitle, the Commissioner may: (1) impose on the self-service storage producer a penalty of not more than $2,500 for each violation of this subtitle; and (2) require that restitution be made to any person who has suffered financial injury because of a violation of this subtitle. #### Section 10-811 This subtitle may not be construed to prohibit: (1) an insurer from paying and a self-service storage producer from receiving a commission, service fee, or any other valuable consideration dependent on the sale of insurance; or (2) the payment of compensation by the self-service storage producer to an employee or authorized representative who offers or sells limited lines insurance that is incidental to the employee's or authorized representative's overall compensation and not dependent on the sale of insurance. #### Section 10-812 The Commissioner may adopt regulations to carry out this subtitle, including regulations concerning: (1) the form and content of required disclosures to customers; (2) the training requirements for employees or authorized representatives who offer or sell limited lines insurance under this subtitle; and (3) the qualifications of the individuals who provide the training required under Sec. 10-808 of this subtitle. --- Md. Code Ann., Ins. (as displayed at mgaleg.maryland.gov, October 16, 2026)