<section article="gin" article_name="Insurance" number="10-101" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Authorized representative” means an independent contractor of a travel retailer.</text> </level> <level label="c"> <text>“Business entity” means a corporation, professional association, partnership, limited liability company, limited liability partnership, or other legal entity.</text> </level> <level label="d"> <text>“Home state” means any state in which an insurance producer:</text> <level label="1"> <text>maintains the insurance producer’s principal place of residence or principal place of business; and</text> </level> <level label="2"> <text>is licensed to act as a resident insurance producer.</text> </level> </level> <level label="e"> <level label="1"> <text>“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.</text> </level> <level label="2"> <text>“License” includes a limited lines license.</text> </level> </level> <level label="f"> <text>“Limited line credit insurance” includes:</text> <level label="1"> <text>credit life insurance;</text> </level> <level label="2"> <text>credit health insurance;</text> </level> <level label="3"> <text>credit property insurance;</text> </level> <level label="4"> <text>credit unemployment insurance;</text> </level> <level label="5"> <text>credit involuntary unemployment benefit insurance;</text> </level> <level label="6"> <text>mortgage life insurance;</text> </level> <level label="7"> <text>mortgage guaranty insurance;</text> </level> <level label="8"> <text>mortgage disability insurance;</text> </level> <level label="9"> <text>guaranteed automobile protection (GAP) insurance; and</text> </level> <level label="10"> <text>any other form of insurance that:</text> <level label="i"> <text>is offered in connection with an extension of credit;</text> </level> <level label="ii"> <text>is limited to partially or wholly extinguishing that credit obligation; and</text> </level> <level label="iii"> <text>the Commissioner determines should be designated a form of limited line credit insurance.</text> </level> </level> </level> <level label="g"> <text>“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.</text> </level> <level label="h"> <text>“Limited lines insurance” means:</text> <level label="1"> <text>limited line credit insurance;</text> </level> <level label="2"> <text>the lines of insurance described in §§ 10–122 through 10–125 of this subtitle;</text> </level> <level label="3"> <text>insurance sold in connection with, and incidental to, the rental of a motor vehicle under Subtitle 6 of this title; or</text> </level> <level label="4"> <text>any other line of insurance that the Commissioner considers necessary to recognize for the purpose of complying with § 10–119(d) of this subtitle.</text> </level> </level> <level label="i"> <text>“Limited lines insurance producer” means a person authorized by the Commissioner to sell, solicit, or negotiate limited lines insurance.</text> </level> <level label="j"> <text>“Limited lines travel insurance producer” means, with respect to travel insurance:</text> <level label="1"> <text>a licensed managing general agent; or</text> </level> <level label="2"> <text>a licensed insurance producer, including a limited lines insurance producer.</text> </level> </level> <level label="k"> <text>“Offer and disseminate” means, with respect to limited lines travel insurance, to:</text> <level label="1"> <text>provide general information, including a description of coverage and price;</text> </level> <level label="2"> <text>process applications; and</text> </level> <level label="3"> <text>collect premiums.</text> </level> </level> <level label="l"> <level label="1"> <text>“Title insurance producer” means a person that, for compensation, solicits, procures, or negotiates title insurance contracts.</text> </level> <level label="2"> <text>“Title insurance producer” includes a person that provides escrow, closing, or settlement services that may result in the issuance of a title insurance contract.</text> </level> <level label="3"> <text>“Title insurance producer” does not include:</text> <level label="i"> <text>individuals employed and used by title insurance producers for the performance of clerical and similar office duties;</text> </level> <level label="ii"> <text>a financial institution as defined in § 1–101(j) of the Financial Institutions Article that does not solicit, procure, or negotiate title insurance contracts for compensation; or</text> </level> <level label="iii"> <text>a title insurance insurer that is licensed under this article.</text> </level> </level> </level> <level label="m"> <text>“Title insurance producer independent contractor” means a person that:</text> <level label="1"> <text>is licensed to act as a title insurance producer;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>is not an employee of the licensed and appointed title insurance producer.</text> </level> </level> <level label="n"> <text>“Trade name” means a name, symbol, or word, or combination of two or more of these that a person uses to:</text> <level label="1"> <text>identify its business, occupation, or self in a business capacity; and</text> </level> <level label="2"> <text>be distinguished from another business, occupation, or person.</text> </level> </level> <level label="o"> <level label="1"> <text>“Travel insurance” means insurance coverage for personal risk incident to planned travel, including:</text> <level label="i"> <text>interruption or cancellation of a trip or an event;</text> </level> <level label="ii"> <text>loss of baggage or personal effects;</text> </level> <level label="iii"> <text>damage to accommodations or a rental vehicle;</text> </level> <level label="iv"> <text>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;</text> </level> <level label="v"> <text>emergency evacuation;</text> </level> <level label="vi"> <text>repatriation of remains; and</text> </level> <level label="vii"> <text>any other contractual obligations to indemnify or pay a specified amount to the traveler on determinable contingencies related to travel as the Commissioner approves.</text> </level> </level> <level label="2"> <text>“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.</text> </level> </level> <level label="p"> <text>“Travel retailer” means a business entity that makes, arranges, or offers travel services.</text> </level> <level label="q"> <text>“Uniform application” means the current version of the NAIC uniform application for resident and nonresident insurance producer licensing.</text> </level> <level label="r"> <text>“Uniform business entity application” means the current version of the NAIC uniform business entity application for resident and nonresident business entities.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-102" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>This subtitle applies to insurance producers, all kinds of insurance and annuities, and all types of insurers, including:</text> <level label="1"> <text>nonprofit health service plans;</text> </level> <level label="2"> <text>dental plan organizations;</text> </level> <level label="3"> <text>health maintenance organizations; and</text> </level> <level label="4"> <text>fraternal benefit societies.</text> </level> </level> <level label="b"> <text>This subtitle does not apply to:</text> <level label="1"> <text>reinsurance;</text> </level> <level label="2"> <text>except as provided in §§ 10-116(c) and 10-119 of this subtitle, surplus lines transactions, which are subject to Title 3, Subtitle 3 of this article;</text> </level> <level label="3"> <text>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</text> </level> <level label="4"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-103" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>In this section, the term “insurer” does not include an insurer’s officers, directors, employees, subsidiaries, or affiliates.</text> </level> <level label="b"> <text>The licensing requirements of this section do not apply to:</text> <level label="1"> <text>an insurer;</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>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</text> </level> <level label="iii"> <text>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;</text> </level> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>an employer, association, the officers, directors, and employees of an employer or association, or the trustees of an employee trust plan if:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>the program involves the use of insurance issued by an insurer; and</text> </level> <level label="iii"> <text>the employer, association, officers, directors, and employees, or trustees are not in any manner compensated, directly or indirectly, by the insurer issuing the contracts;</text> </level> </level> <level label="5"> <text>an employee of an insurer or organization employed by an insurer who is:</text> <level label="i"> <text>engaged in the inspection, rating, or classification of risks or in the supervision of the training of insurance producers; and</text> </level> <level label="ii"> <text>not individually engaged in the sale, solicitation, or negotiation of insurance;</text> </level> </level> <level label="6"> <text>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:</text> <level label="i"> <text>the distribution of the printed publications or other forms of electronic mass media is not limited to residents of the State; and</text> </level> <level label="ii"> <text>the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in the State;</text> </level> </level> <level label="7"> <text>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:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>the contract insures risks located in that state; or</text> </level> </level> <level label="8"> <text>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.</text> </level> </level> <level label="c"> <text>Except as otherwise provided in this article or §§ 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:</text> <level label="1"> <text>a license in the kind or subdivision of insurance for which the person intends to act as an insurance producer; and</text> </level> <level label="2"> <text>if acting for an insurer, an appointment from the insurer.</text> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Without an appointment, an insurance producer may:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="e"> <text>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:</text> <level label="1"> <text>a license in the kind or subdivision of insurance for which the business entity intends to act as an insurance producer; and</text> </level> <level label="2"> <text>an appointment for the kind or subdivision of insurance for which it intends to act as an insurance producer on behalf of an insurer.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-104" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>This section applies to:</text> <level label="1"> <text>a license to act as an insurance producer for insurance other than life insurance, health insurance, or annuities;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>a limited lines license to act as an insurance producer for a line of insurance described in §§ 10–122 through 10–125 of this subtitle.</text> </level> </level> <level label="b"> <text>To qualify for a license to which this section applies, an individual applicant must meet the requirements of this section.</text> </level> <level label="c"> <text>An applicant must be of good character and trustworthy based on the standards of § 10–126 of this subtitle.</text> </level> <level label="d"> <text>An applicant must be at least 18 years of age.</text> </level> <level label="e"> <text>An applicant may not have committed any act that the Commissioner finds would warrant denial of a license under § 10–126 of this subtitle.</text> </level> <level label="f"> <level label="1"> <text>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:</text> <level label="i"> <text>provided by an insurer that sells, solicits, or negotiates limited line credit insurance; and</text> </level> <level label="ii"> <text>designed to provide a comprehensive and accurate explanation of the product.</text> </level> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>The records shall include:</text> <level label="1"> <text>copies of the instructional materials; and</text> </level> <level label="2"> <text>a list of the applicants and producers who have successfully completed the program of instruction.</text> </level> </level> <level label="iii"> <text>The insurer shall make available to the Commissioner the records relating to the program of instruction at the request of the Commissioner.</text> </level> </level> </level> <level label="g"> <text>Except as otherwise provided in this section, the applicant must pass an examination given by the Commissioner under this subtitle.</text> </level> <level label="h"> <text>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.</text> </level> <level label="i"> <text>An applicant may be licensed as to any particular kind or kinds of insurance.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-105" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>An applicant must be of good character and trustworthy based on the standards of § 10–126 of this subtitle.</text> </level> <level label="c"> <text>An applicant must be at least 18 years of age.</text> </level> <level label="d"> <text>An applicant may not have committed any act that the Commissioner finds would warrant denial of a license under § 10–126 of this subtitle.</text> </level> <level label="e"> <level label="1"> <text>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:</text> <level label="i"> <text>provided by an insurer that sells, solicits, or negotiates limited line credit insurance; and</text> </level> <level label="ii"> <text>designed to provide a comprehensive and accurate explanation of the product.</text> </level> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>The records shall include:</text> <level label="1"> <text>copies of the instructional materials; and</text> </level> <level label="2"> <text>a list of the applicants and producers who have successfully completed the program of instruction.</text> </level> </level> <level label="iii"> <text>The insurer shall make the records relating to the program of instruction available to the Commissioner at the request of the Commissioner.</text> </level> </level> </level> <level label="f"> <text>Before taking a written examination, an applicant shall pay the application fee required under § 2–112(a)(6)(vi) of this article.</text> </level> <level label="g"> <level label="1"> <text>Except as otherwise provided in this subsection, the applicant must pass an examination given by the Commissioner under this subtitle.</text> </level> <level label="2"> <text>The following applicants are not required to take an examination:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>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;</text> </level> <level label="iii"> <text>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</text> </level> <level label="iv"> <text>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.</text> </level> </level> </level> <level label="h"> <text>An applicant may be licensed as to any particular kind or kinds of insurance.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-106" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>The designated insurance producer shall:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>compile and maintain, to the extent reasonably possible, a list of locations where records of the business entity are maintained; and</text> </level> <level label="4"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-107" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-108" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>The Commissioner shall adopt reasonable regulations that specify:</text> <level label="1"> <text>the scope, type, conduct, and grading of the written examinations; and</text> </level> <level label="2"> <text>the frequency, times, and locations within the State where the written examinations will be held.</text> </level> </level> <level label="d"> <text>Before taking a written examination, an individual applicant shall pay the application fee required under § 2–112(a)(6)(vi) of this article.</text> </level> <level label="e"> <text>All written examinations shall be graded within 30 days following the date of the examination.</text> </level> <level label="f"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-109" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <level label="1"> <text>Each individual applicant must pass a personal written examination to determine:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>the familiarity of the applicant with the applicable laws of the State.</text> </level> </level> <level label="2"> <text>Each examination must be graded within 30 days after the date of the examination.</text> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>The Commissioner shall adopt reasonable regulations that specify:</text> <level label="1"> <text>the scope, type, conduct, and grading of the written examinations; and</text> </level> <level label="2"> <text>the frequency, times, and places in the State where the written examinations will be held.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-110" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Each member of the advisory board shall be experienced in the business of life insurance or health insurance.</text> </level> <level label="3"> <text>The advisory board:</text> <level label="i"> <text>may include insurance producers and employees or officers of insurers; and</text> </level> <level label="ii"> <text>shall include at least two members who are insurance producers with valid licenses issued in the State in that kind of insurance.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Each member of the advisory board shall be experienced in the business of property insurance or casualty insurance.</text> </level> <level label="3"> <text>The advisory board:</text> <level label="i"> <text>may include insurance producers and employees or officers of insurers; and</text> </level> <level label="ii"> <text>shall include at least two members who are insurance producers with valid licenses issued in the State in that kind of insurance.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The term of a member of an advisory board under this section is 4 years.</text> </level> <level label="2"> <text>A member who is appointed after a term has begun serves only for the rest of the term.</text> </level> <level label="3"> <text>A member is eligible for reappointment.</text> </level> <level label="4"> <text>The Commissioner may stagger the terms of members of each advisory board under this section.</text> </level> </level> <level label="e"> <text>A member of an advisory board under this section:</text> <level label="1"> <text>may not receive compensation; but</text> </level> <level label="2"> <text>if authorized by the Commissioner, is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> <level label="f"> <text>The Commissioner may adopt regulations to carry out this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-111" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>A person who applies for a license as a resident insurance producer shall:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>in the case of an applicant that is a business entity, submit to the Commissioner a uniform business entity application;</text> </level> <level label="3"> <text>pay the applicable fee required by § 2–112 of this article for a license;</text> </level> <level label="4"> <text>file on the form and in the manner that the Commissioner provides:</text> <level label="i"> <text>any trade name to be used by the applicant;</text> </level> <level label="ii"> <text>the business address of the applicant; and</text> </level> <level label="iii"> <text>the name and residence address of each individual who holds a license and does business under the trade name; and</text> </level> </level> <level label="5"> <text>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.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>In addition to any other information required on the application, an applicant that is a business entity must:</text> <level label="i"> <text>identify the licensed insurance producer who is designated to act as the business entity’s principal contact with the Administration; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-112" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>An applicant may qualify for a license in one or more of the following kinds of insurance:</text> <level label="i"> <text>life insurance;</text> </level> <level label="ii"> <text>accident and health or sickness insurance;</text> </level> <level label="iii"> <text>property insurance;</text> </level> <level label="iv"> <text>casualty insurance;</text> </level> <level label="v"> <text>variable life and variable annuity products;</text> </level> <level label="vi"> <text>personal lines of property and casualty insurance;</text> </level> <level label="vii"> <text>limited line credit insurance; and</text> </level> <level label="viii"> <text>any other kind or subdivision of insurance permitted under State law or regulations.</text> </level> </level> </level> <level label="b"> <text>A license shall contain:</text> <level label="1"> <text>the licensee’s name, address, and personal identification number;</text> </level> <level label="2"> <text>the date of issuance;</text> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>the expiration date; and</text> </level> <level label="5"> <text>any other information that the Commissioner considers necessary.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The list shall include:</text> <level label="i"> <text>the name and mailing address of each person issued a license; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="3"> <text>The Commissioner shall provide the list free of charge.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-113" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>A license does not create any actual, apparent, or inherent authority in the holder to represent or commit an insurer.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-114" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="10-115" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <level label="1"> <text>Licenses expire every other year on the date stated on the license unless renewed as provided in this section.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <text>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:</text> <level label="1"> <text>the process for renewing the license;</text> </level> <level label="2"> <text>the date by which the Commissioner must receive the renewal application; and</text> </level> <level label="3"> <text>the amount of the renewal fee.</text> </level> </level> <level label="c"> <text>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:</text> <level label="1"> <text>otherwise is entitled to a license;</text> </level> <level label="2"> <text>files with the Commissioner a renewal application:</text> <level label="i"> <text>on the form that the Commissioner provides; or</text> </level> <level label="ii"> <text>in an electronic format that the Commissioner approves;</text> </level> </level> <level label="3"> <text>completes the continuing education requirements established under § 10–116 of this subtitle; and</text> </level> <level label="4"> <text>pays to the Commissioner the renewal fee required by § 2–112 of this article.</text> </level> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>is in a form capable of being processed by that system; and</text> </level> <level label="iii"> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> </level> </level> <level label="f"> <level label="1"> <text>The Commissioner shall renew the license of each holder who meets the requirements of this section.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="g"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="h"> <text>The Commissioner may adopt regulations to:</text> <level label="1"> <text>carry out this section; and</text> </level> <level label="2"> <text>develop a staggered system of renewals for licenses of insurance producers.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-116" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <level label="i"> <text>The Commissioner may not require an individual who holds a license to receive more than 24 hours of continuing education per renewal period.</text> </level> <level label="ii"> <text>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.</text> </level> <level label="iii"> <text>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.</text> </level> <level label="iv"> <text>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:</text> <level label="1"> <text>sells only life insurance policies or annuity contracts that fund a pre–need contract as defined in § 7–101 of the Health Occupations Article; and</text> </level> <level label="2"> <text>is not a viatical settlement broker as defined in § 8–601 of this article.</text> </level> </level> <level label="v"> <text>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.</text> </level> </level> <level label="4"> <text>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:</text> <level label="i"> <text>proof that the insurance producer has completed the required hours of continuing education for the applicable renewal period; or</text> </level> <level label="ii"> <text>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:</text> <level label="1"> <text>has held a license in the State; and</text> </level> <level label="2"> <text>has been employed in the selling of insurance in the State.</text> </level> </level> </level> <level label="5"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> <level label="iii"> <text>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.</text> </level> <level label="iv"> <text>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.</text> </level> <level label="v"> <text>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.</text> </level> </level> <level label="6"> <text>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.</text> </level> <level label="7"> <text>An insurer may not prohibit one of its insurance producers from obtaining continuing education credits from any course approved by the Commissioner.</text> </level> </level> <level label="b"> <text>The following individuals are exempt from the continuing education requirements under this section:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>individuals who hold only a limited lines license to act as an insurance producer for limited line credit insurance; and</text> </level> <level label="4"> <text>insurance producers who hold only a limited lines license in any type of insurance designated by the Commissioner.</text> </level> </level> <level label="c"> <text>A nonresident licensee shall be deemed to have met the continuing education requirements of this section if:</text> <level label="1"> <text>the nonresident licensee satisfies the continuing education requirements of the home state of the nonresident licensee; and</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <level label="1"> <text>The Commissioner may review all continuing education courses submitted and approve or disapprove courses.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d–1"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="e"> <level label="1"> <text>The Commissioner shall adopt regulations to carry out this section.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="f"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-116.1" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>For up to 1 year after the expiration date, a person whose license has expired may reinstate the expired license by:</text> <level label="1"> <text>filing with the Commissioner the appropriate reinstatement application;</text> </level> <level label="2"> <text>paying to the Commissioner:</text> <level label="i"> <text>the applicable renewal fee under § 2-112 of this article; and</text> </level> <level label="ii"> <text>a reinstatement fee of $100; and</text> </level> </level> <level label="3"> <text>submitting proof of completion of the continuing education requirements in § 10-116 of this subtitle.</text> </level> </level> <level label="b"> <text>A person whose license has expired is prohibited from conducting any insurance business until the effective date of reinstatement of the license.</text> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <text>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 § 10-111 of this subtitle and meet the requirements specified by the Commissioner in regulation.</text> </level> <level label="e"> <text>The Commissioner may adopt regulations to carry out this section.</text> </level> <level label="f"> <text>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:</text> <level label="1"> <text>service in the uniformed services; or</text> </level> <level label="2"> <text>other extenuating circumstances, including a long–term medical disability.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-117" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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 § 10–126(a)(1) of this subtitle.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-118" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <level label="1"> <text>An insurer authorized to transact the business of insurance in the State shall maintain a producer register.</text> </level> <level label="2"> <text>Within 30 days of the insurer appointing an insurance producer, the insurer shall include the following information in the insurer’s producer register:</text> <level label="i"> <text>the insurance producer’s name;</text> </level> <level label="ii"> <text>the license number assigned to the insurance producer by the Commissioner;</text> </level> <level label="iii"> <text>the date that the insurer appointed the insurance producer; and</text> </level> <level label="iv"> <text>any additional information that the Commissioner may require.</text> </level> </level> <level label="3"> <text>An insurer shall send written documentation of the appointment to the insurance producer.</text> </level> </level> <level label="c"> <text>A licensed insurance producer that has been appointed by an insurer shall maintain:</text> <level label="1"> <text>documentation of the insurer’s appointment; and</text> </level> <level label="2"> <text>a list of the insurers that have appointed the producer.</text> </level> </level> <level label="d"> <level label="1"> <text>The insurer’s producer register and the producer’s record relating to an appointment:</text> <level label="i"> <text>shall be open to inspection and examination by the Commissioner; and</text> </level> <level label="ii"> <text>may be maintained electronically.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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:</text> <level label="i"> <text>rejects the application in accordance with § 27-501 of this article; or</text> </level> <level label="ii"> <text>appoints the insurance producer and enters in the insurer’s producer register the information required by subsection (b) of this section.</text> </level> </level> </level> <level label="e"> <level label="1"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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 § 10-126 of this subtitle, including any finding made by a court, governmental unit, or self-regulatory organization authorized by law that:</text> <level label="1"> <text>the insurance producer has violated § 10-126 of this subtitle; or</text> </level> <level label="2"> <text>the insurance producer has engaged in any activities that are set forth in § 10-126 of this subtitle.</text> </level> </level> <level label="iii"> <text>On written request of the Commissioner, the insurer shall provide additional information, documents, records, or other data pertaining to:</text> <level label="1"> <text>the termination; or</text> </level> <level label="2"> <text>the activities of the insurance producer if the insurance producer was terminated for cause due to a reason set forth in § 10-126 of this subtitle.</text> </level> </level> </level> <level label="2"> <text>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 § 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.</text> </level> </level> <level label="f"> <text>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:</text> <level label="1"> <text>the insurer discovers on further review or investigation; and</text> </level> <level label="2"> <text>would have been reportable to the Commissioner under subsection (e) of this section if the insurer had then known of its existence.</text> </level> </level> <level label="g"> <level label="1"> <text>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:</text> <level label="i"> <text>at the last known address of the insurance producer; and</text> </level> <level label="ii"> <text>by certified mail, return receipt requested, postage prepaid or by overnight delivery using a nationally recognized carrier.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>If the Commissioner receives comments from an insurance producer, the Commissioner shall:</text> <level label="i"> <text>make the comments part of the Commissioner’s file on the subject; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="h"> <level label="1"> <text>This subsection applies to:</text> <level label="i"> <text>an insurer;</text> </level> <level label="ii"> <text>an authorized representative of an insurer;</text> </level> <level label="iii"> <text>an insurance producer;</text> </level> <level label="iv"> <text>the Commissioner; and</text> </level> <level label="v"> <text>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.</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>any statement or information required by or provided under this section; or</text> </level> <level label="ii"> <text>any information relating to any statement that may be requested in writing by the Commissioner from an insurer or insurance producer.</text> </level> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>This subsection does not abrogate or modify any existing statutory or common law privileges or immunities.</text> </level> </level> <level label="i"> <level label="1"> <text>This subsection applies only to any document, material, or other information in the control or possession of the Insurance Administration that is:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>otherwise obtained by the Commissioner in an investigation under this section.</text> </level> </level> <level label="2"> <text>Any document, material, or other information that is subject to this subsection is:</text> <level label="i"> <text>confidential and privileged;</text> </level> <level label="ii"> <text>not subject to Title 4 of the General Provisions Article;</text> </level> <level label="iii"> <text>not subject to subpoena; and</text> </level> <level label="iv"> <text>not subject to discovery or admissible in evidence in any private civil action.</text> </level> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>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.</text> </level> <level label="5"> <level label="i"> <text>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:</text> <level label="1"> <text>other State, federal, or international regulatory agencies;</text> </level> <level label="2"> <text>the National Association of Insurance Commissioners and its affiliates or subsidiaries; or</text> </level> <level label="3"> <text>State, federal, or international law enforcement authorities.</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="6"> <level label="i"> <text>The Commissioner may receive a document, material, or information, including a document, material, or information that is otherwise confidential and privileged, from:</text> <level label="1"> <text>the National Association of Insurance Commissioners or its affiliates or subsidiaries; or</text> </level> <level label="2"> <text>regulatory and law enforcement officials of other foreign or domestic jurisdictions.</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="7"> <text>The Commissioner may enter into agreements governing sharing and use of information consistent with this subsection.</text> </level> <level label="8"> <text>There is no waiver of any applicable privilege or claim of confidentiality in a document, material, or information as a result of:</text> <level label="i"> <text>disclosure of the document, material, or information to the Commissioner under this section; or</text> </level> <level label="ii"> <text>sharing of the document, material, or information by the Commissioner under paragraph (5) of this subsection.</text> </level> </level> <level label="9"> <text>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.</text> </level> </level> <level label="j"> <text>The Commissioner may adopt regulations to carry out this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-119" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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:</text> <level label="1"> <text>the applicant has a valid license from the home state of the applicant; and</text> </level> <level label="2"> <text>the home state of the applicant awards nonresident licenses to residents of this State on the same basis.</text> </level> </level> <level label="b"> <level label="1"> <text>Subject to paragraph (2) of this subsection and unless denied a license under § 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:</text> <level label="i"> <text>the person currently is licensed as a resident insurance producer and in good standing in the person’s home state;</text> </level> <level label="ii"> <text>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;</text> </level> <level label="iii"> <text>the person has paid the applicable fee under § 2–112 of this article; and</text> </level> <level label="iv"> <text>the person’s home state awards nonresident insurance producer licenses to residents of this State on the same basis.</text> </level> </level> <level label="2"> <text>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 §§ 10–104, 10–105, and 10–107 through 10–109 of this subtitle if:</text> <level label="i"> <text>the person currently is licensed as an insurance producer in the home state of the person;</text> </level> <level label="ii"> <text>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</text> </level> <level label="iii"> <text>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.</text> </level> </level> </level> <level label="c"> <text>In order to maintain a nonresident license in the State, a person must be:</text> <level label="1"> <text>currently licensed as a resident insurance producer in the person’s home state; and</text> </level> <level label="2"> <text>in good standing in the person’s home state.</text> </level> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <text>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.</text> </level> <level label="f"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Except for subsection (b) of this section, nothing in this section supersedes any provision of Title 3, Subtitle 3 of this article.</text> </level> </level> <level label="g"> <level label="1"> <text>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:</text> <level label="i"> <text>file with the Commissioner a change of address; and</text> </level> <level label="ii"> <text>provide to the Commissioner certification from the new resident state within 30 days after the change of legal residence.</text> </level> </level> <level label="2"> <text>The Commissioner may not charge a fee or require a license application following a change of legal residence.</text> </level> </level> <level label="h"> <level label="1"> <text>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 § 10–111 of this subtitle within 90 days after establishing legal residence in this State.</text> </level> <level label="2"> <text>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 §§ 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.</text> </level> </level> <level label="i"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-120" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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:</text> <level label="1"> <text>is otherwise qualified; and</text> </level> <level label="2"> <text>is:</text> <level label="i"> <text>the surviving spouse, next of kin, personal representative, or appointee of the personal representative, of a deceased insurance producer;</text> </level> <level label="ii"> <text>the spouse, next of kin, employee, or legal guardian of a mentally or physically disabled insurance producer; or</text> </level> <level label="iii"> <text>an employee of a firm, or an officer or employee of a corporation, of a deceased or disabled insurance producer.</text> </level> </level> </level> <level label="b"> <text>Before a person acts as a temporary insurance producer in the State, the person must obtain:</text> <level label="1"> <text>a temporary license in the kind or subdivision of insurance for which the person intends to act as an insurance producer; and</text> </level> <level label="2"> <text>if applicable, an appointment from an insurer.</text> </level> </level> <level label="c"> <text>An applicant for a temporary license shall:</text> <level label="1"> <text>file with the Commissioner an application on the form that the Commissioner provides; and</text> </level> <level label="2"> <text>pay to the Commissioner the applicable fee required by § 2-112 of this article.</text> </level> </level> <level label="d"> <text>Within 30 days after the date an application is received, the Commissioner shall:</text> <level label="1"> <text>issue a temporary license to the applicant; or</text> </level> <level label="2"> <text>refuse in writing to issue a temporary license, stating the reasons for the refusal.</text> </level> </level> <level label="e"> <text>A temporary license issued under subsection (a) of this section expires 15 months after its effective date.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-121" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“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.</text> </level> <level label="3"> <text>“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.</text> </level> <level label="4"> <text>“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.</text> </level> <level label="5"> <text>“Title agency” has the meaning stated in § 10–125(a)(4) of this subtitle.</text> </level> <level label="6"> <text>“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.</text> </level> <level label="7"> <text>“Trust money controller” means a person within a title agency who has day–to–day direct control over trust money.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, only a licensed title insurance producer may exercise control over trust money.</text> </level> <level label="2"> <text>Paragraph (1) of this subsection does not apply to trust money that is entrusted to:</text> <level label="i"> <text>a law firm as defined in § 10–125 of this subtitle; or</text> </level> <level label="ii"> <text>a title insurer.</text> </level> </level> </level> <level label="c"> <text>A person may not convert or misappropriate money received or held in escrow or trust while:</text> <level label="1"> <text>acting as a title insurance producer; or</text> </level> <level label="2"> <text>providing any escrow, closing, or settlement services.</text> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>If an applicant for a license is a business entity, the application shall be accompanied by an entity authorization that:</text> <level label="i"> <text>identifies each controlling person;</text> </level> <level label="ii"> <text>designates each person that will be a trust money controller for the title agency;</text> </level> <level label="iii"> <text>identifies each owner; and</text> </level> <level label="iv"> <text>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.</text> </level> </level> <level label="3"> <text>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.</text> </level> </level> <level label="e"> <level label="1"> <text>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:</text> <level label="i"> <text>a blanket fidelity bond covering appropriate employees and title insurance producer independent contractors; and</text> </level> <level label="ii"> <level label="1"> <text>a blanket surety bond; or</text> </level> <level label="2"> <text>a letter of credit.</text> </level> </level> </level> <level label="2"> <text>Unless the Commissioner approves a lesser amount, each bond or letter of credit shall be for $150,000.</text> </level> <level label="3"> <text>The Commissioner may adopt regulations that specify when it is appropriate for a bond or letter of credit to be less than $150,000.</text> </level> <level label="4"> <text>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.</text> </level> <level label="5"> <text>The Commissioner shall make a specific finding that states the reason for accepting a bond or letter of credit for less than $150,000.</text> </level> </level> <level label="f"> <level label="1"> <text>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:</text> <level label="i"> <text>acting as a title insurance producer; or</text> </level> <level label="ii"> <text>providing any escrow, closing, or settlement services.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>The total liability of the surety insurer under each bond or letter of credit may not exceed $150,000.</text> </level> </level> <level label="g"> <text>The title insurance producer shall file the bond or letter of credit with the Commissioner:</text> <level label="1"> <text>after the Commissioner notifies the title insurance producer of the approval of the application for a license; and</text> </level> <level label="2"> <text>before the Commissioner issues the license.</text> </level> </level> <level label="h"> <level label="1"> <text>Each bond or letter of credit shall remain in force until:</text> <level label="i"> <text>the surety insurer is released from liability by the Commissioner; or</text> </level> <level label="ii"> <text>the bond or letter of credit is canceled by the surety insurer.</text> </level> </level> <level label="2"> <text>A surety insurer shall notify the title insurance producer and the Commissioner at least 30 days before canceling a bond or letter of credit.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="i"> <text>Before the Commissioner renews the license of a title insurance producer, the title insurance producer shall submit satisfactory evidence of compliance with this section.</text> </level> <level label="j"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>A restraining order issued by a court under this subsection is effective until:</text> <level label="i"> <text>the court lifts the restraining order; or</text> </level> <level label="ii"> <text>the charges are dismissed or adjudicated.</text> </level> </level> </level> <level label="k"> <level label="1"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>The annual review shall include a review of the title insurance producer’s or agency’s policy issuing and processing operations.</text> </level> <level label="iii"> <text>The annual review may be conducted:</text> <level label="1"> <text>at the place of business of the title insurance producer;</text> </level> <level label="2"> <text>remotely by using mail, overnight delivery, or electronic means; or</text> </level> <level label="3"> <text>using any combination of items 1 and 2 of this subparagraph.</text> </level> </level> <level label="iv"> <text>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.</text> </level> <level label="v"> <text>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.</text> </level> </level> <level label="2"> <text>A written report setting forth the results of the annual review shall be prepared by the title insurer and is subject to examination under § 2–205 of this article.</text> </level> <level label="3"> <text>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 § 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.</text> </level> <level label="4"> <text>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 § 22–105 of this article.</text> </level> <level label="5"> <text>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.</text> </level> </level> <level label="l"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The bonding requirements of this subtitle relating to title insurance producers do not apply to an employee or officer of an authorized title insurer.</text> </level> </level> <level label="m"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>The notice required under this subsection shall be:</text> <level label="i"> <text>in writing; and</text> </level> <level label="ii"> <text>sent by certified mail or by electronic means in accordance with § 2–116 of this article.</text> </level> </level> </level> <level label="n"> <text>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.</text> </level> <level label="o"> <text>In addition to any requirements under this subtitle, title insurance producers shall comply with this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-121.1" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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:</text> <level label="1"> <text>holds an appointment with the title insurer with which the contract of title insurance may be placed; and</text> </level> <level label="2"> <text>is covered under the title insurance producer’s:</text> <level label="i"> <text>blanket fidelity bond; and</text> </level> <level label="ii"> <text>blanket surety bond or letter of credit.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>A title insurance producer that uses the services of a title insurance producer independent contractor is:</text> <level label="i"> <text>the legal principal of the title insurance producer independent contractor; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-122" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>A limited lines license issued under this section authorizes the holder to act as an insurance producer only as to travel insurance.</text> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <level label="1"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>The limited lines travel insurance producer or travel retailer shall provide in writing to a purchaser of travel insurance:</text> <level label="1"> <text>a description of the material terms or the actual terms of the insurance coverage;</text> </level> <level label="2"> <text>a description of the process for filing a claim;</text> </level> <level label="3"> <text>a description of the review or cancellation process for the travel insurance policy;</text> </level> <level label="4"> <text>a disclosure that:</text> </level> <level label="A"> <text>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</text> </level> <level label="B"> <text>the purchase of travel insurance would make the travel insurance coverage primary to any other duplicate or similar coverage;</text> </level> <level label="5"> <text>the identity and contact information of the insurer and limited lines travel insurance producer; and</text> </level> <level label="6"> <text>contact information for filing a complaint with the Commissioner.</text> </level> </level> <level label="iii"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The limited lines travel insurance producer shall:</text> </level> <level label="A"> <text>submit the register for inspection by the Commissioner as the Commissioner requires; and</text> </level> <level label="B"> <text>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.</text> </level> <level label="3"> <text>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. § 1033.</text> </level> </level> <level label="iv"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="v"> <text>The limited lines travel insurance producer shall be in good standing with the Commissioner with respect to its license.</text> </level> <level label="vi"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The training material shall contain, at a minimum, instruction on the types of insurance offered, ethical sales practices, and required disclosures to prospective customers.</text> </level> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>provide the identity and contact information of the limited lines travel insurance producer overseeing the activities of the travel retailer;</text> </level> <level label="ii"> <text>explain that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer; and</text> </level> <level label="iii"> <text>explain that a travel retailer:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> </level> <level label="3"> <text>A travel retailer’s employee or authorized representative who is not licensed as a limited lines travel insurance producer under this section may not:</text> <level label="i"> <text>evaluate or interpret the technical terms, benefits, and conditions of the offered travel insurance coverage;</text> </level> <level label="ii"> <text>evaluate or provide advice concerning a prospective purchaser’s existing insurance coverage; or</text> </level> <level label="iii"> <text>hold himself or herself out as a limited lines travel insurance producer, any other insurance producer, or an insurance expert.</text> </level> </level> <level label="4"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> <level label="iii"> <text>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.</text> </level> </level> <level label="5"> <text>The limited lines travel insurance producer:</text> <level label="i"> <text>is responsible for the acts of the travel retailer; and</text> </level> <level label="ii"> <text>shall use reasonable means to ensure compliance by the travel retailer with this section.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-123" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="10-124" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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:</text> <level label="1"> <text>between the health maintenance organization and the Maryland Department of Health; and</text> </level> <level label="2"> <text>in accordance with which the Maryland Department of Health obtains prepaid comprehensive health care services for recipients of medical assistance under § 15–105 of the Health – General Article.</text> </level> </level> <level label="b"> <text>The annual license fee is provided in § 2–112 of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-125" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Attorney” means an individual admitted to practice law by the Supreme Court of Maryland of the State.</text> </level> <level label="3"> <level label="i"> <text>“Law firm” means an association of attorneys in a law partnership, professional corporation, sole proprietorship, or other business entity who:</text> <level label="1"> <text>are primarily engaged in the practice of law; and</text> </level> <level label="2"> <text>solicit, procure, or negotiate title insurance contracts only as an incident to the practice of law.</text> </level> </level> <level label="ii"> <text>“Law firm” includes a sole practitioner.</text> </level> <level label="iii"> <text>“Law firm” does not include:</text> <level label="1"> <text>an attorney or an association of attorneys who own, operate, or share an interest in a title agency; or</text> </level> <level label="2"> <text>an attorney who is employed by a title agency as a title insurance producer.</text> </level> </level> </level> <level label="4"> <level label="i"> <text>“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.</text> </level> <level label="ii"> <text>“Title agency” includes a sole proprietor, partnership, or corporation.</text> </level> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>All licensing provisions of this subtitle apply to:</text> <level label="1"> <text>an attorney who solicits, procures, or negotiates title insurance contracts; and</text> </level> <level label="2"> <text>title agencies even if the title agency is established or owned by an attorney or an association of attorneys.</text> </level> </level> <level label="d"> <text>Notwithstanding any other provision of this subtitle:</text> <level label="1"> <level label="i"> <text>the licensing, bonding, and examination requirements of this subtitle relating to title insurance producers do not apply to law firms; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="2"> <text>The bonding requirements of this subtitle are applicable to:</text> <level label="i"> <text>an attorney or an association of attorneys who own, operate, or share an interest in a title agency; and</text> </level> <level label="ii"> <text>an attorney who is employed by a title agency as a title insurance producer.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-126" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>The Commissioner may deny a license to an applicant under §§ 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 §§ 2–210 through 2–214 of this article if the applicant or holder of the license:</text> <level label="1"> <text>has willfully violated this article or another law of the State that relates to insurance;</text> </level> <level label="2"> <text>has intentionally misrepresented or concealed a material fact in the application for a license;</text> </level> <level label="3"> <text>has obtained or attempted to obtain a license by misrepresentation, concealment, or other fraud;</text> </level> <level label="4"> <text>has misappropriated, converted, or unlawfully withheld money belonging to an insurer, insurance producer, beneficiary, or insured;</text> </level> <level label="5"> <text>has willfully and materially misrepresented the provisions of a policy;</text> </level> <level label="6"> <text>has committed fraudulent or dishonest practices in the insurance business;</text> </level> <level label="7"> <text>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;</text> </level> <level label="8"> <text>has been convicted by final judgment in any state or federal court of a felony or crime involving moral turpitude;</text> </level> <level label="9"> <text>has knowingly participated in writing or issuing substantial over–insurance of property insurance risks;</text> </level> <level label="10"> <text>has failed an examination required by this subtitle;</text> </level> <level label="11"> <text>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;</text> </level> <level label="12"> <text>has failed or refused to pay over on demand money that belongs to an insurer, insurance producer, or other person entitled to the money;</text> </level> <level label="13"> <text>has otherwise shown a lack of trustworthiness or competence to act as an insurance producer;</text> </level> <level label="14"> <text>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;</text> </level> <level label="15"> <text>has been denied a license or certificate in another state or has had a license or certificate suspended or revoked in another state;</text> </level> <level label="16"> <text>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;</text> </level> <level label="17"> <text>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;</text> </level> <level label="18"> <text>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;</text> </level> <level label="19"> <text>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;</text> </level> <level label="20"> <text>has forged another’s name to an application for insurance or to any document related to an insurance transaction;</text> </level> <level label="21"> <text>has improperly used notes or any other reference material to complete an examination for a license;</text> </level> <level label="22"> <text>has failed to pay income tax or related interest or penalty under:</text> <level label="i"> <text>an assessment under the Tax – General Article that is final and no longer subject to review by the tax court; or</text> </level> <level label="ii"> <text>an order of the tax court that is final and no longer subject to judicial review; or</text> </level> </level> <level label="23"> <text>in providing information under § 10–118 of this subtitle regarding the termination of an appointment with an insurer, has made an inaccurate statement with actual malice.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commissioner may deny a license to an applicant business entity under §§ 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 §§ 2–210 through 2–214 of this article, if an individual listed in paragraph (2) of this subsection has:</text> <level label="i"> <text>violated any provision of this subtitle;</text> </level> <level label="ii"> <text>been convicted of a felony, a crime of moral turpitude, or any criminal offense involving dishonesty or breach of trust; or</text> </level> <level label="iii"> <text>had any professional license suspended or revoked for a fraudulent or dishonest practice.</text> </level> </level> <level label="2"> <text>This subsection applies in any case that involves a business entity if the violation was committed by an individual who is:</text> <level label="i"> <text>an insurance producer;</text> </level> <level label="ii"> <level label="1"> <text>in the case of a limited liability company, an officer, director, member, or manager;</text> </level> <level label="2"> <text>in the case of a partnership, a partner; and</text> </level> <level label="3"> <text>in the case of a corporation, a director, officer, or owner; or</text> </level> </level> <level label="iii"> <text>an individual with direct control over the fiscal management of the business entity.</text> </level> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <text>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.</text> </level> <level label="f"> <level label="1"> <text>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:</text> <level label="i"> <text>in another jurisdiction; or</text> </level> <level label="ii"> <text>by another governmental unit in this State.</text> </level> </level> <level label="2"> <text>The report shall include a copy of the order, consent order, and any other relevant legal documents.</text> </level> </level> <level label="g"> <level label="1"> <level label="i"> <text>In this subsection, the term “charging document” means a written accusation alleging that a defendant has committed an offense.</text> </level> <level label="ii"> <text>In this subsection, the term “charging document” includes:</text> <level label="1"> <text>a citation;</text> </level> <level label="2"> <text>an indictment;</text> </level> <level label="3"> <text>an information; and</text> </level> <level label="4"> <text>a statement of charges.</text> </level> </level> </level> <level label="2"> <text>This subsection does not apply to a misdemeanor violation of the Maryland Vehicle Law or the vehicle law of another jurisdiction.</text> </level> <level label="3"> <text>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:</text> <level label="i"> <text>a judicial officer of the District Court due to an arrest;</text> </level> <level label="ii"> <text>the District Court in response to a summons;</text> </level> <level label="iii"> <text>the circuit court due to execution of a warrant; or</text> </level> <level label="iv"> <text>the circuit court in person or by written notice of counsel in response to a summons.</text> </level> </level> <level label="4"> <text>The report shall include a copy of:</text> <level label="i"> <text>the charging document;</text> </level> <level label="ii"> <text>any order issued by a court; and</text> </level> <level label="iii"> <text>any other relevant legal documents.</text> </level> </level> </level> <level label="h"> <text>An individual is subject to denial or suspension of a license under § 10–119.3 of the Family Law Article if the individual:</text> <level label="1"> <text>is in arrears in the payment of child support amounting to more than 120 days under the most recent order; or</text> </level> <level label="2"> <text>has failed to comply with a subpoena issued by the Child Support Administration under § 10–108.6 of the Family Law Article.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-127" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="10-128" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>This section does not apply to:</text> <level label="1"> <text>reinsurance;</text> </level> <level label="2"> <text>life insurance, health insurance, or annuity contracts;</text> </level> <level label="3"> <text>insurance of:</text> <level label="i"> <text>rolling stock, vessels, or aircraft of a common carrier used in interstate or foreign commerce;</text> </level> <level label="ii"> <text>a motor vehicle principally garaged and used outside the State; or</text> </level> <level label="iii"> <text>liability or other risks, incident to the ownership, maintenance, or operation of a subject of insurance under item (i) or (ii) of this item;</text> </level> </level> <level label="4"> <text>insurance of property while transported in interstate or in foreign trade, or any liability or risk incident to the transportation;</text> </level> <level label="5"> <text>insurance of wet marine and transportation risks;</text> </level> <level label="6"> <text>bid bonds issued in connection with public or private contracts;</text> </level> <level label="7"> <text>policies or endorsements issued through:</text> <level label="i"> <text>insurance producers compensated only by salary;</text> </level> <level label="ii"> <text>insurers not using insurance producers in the general solicitation of business;</text> </level> <level label="iii"> <text>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</text> </level> <level label="iv"> <text>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;</text> </level> </level> <level label="8"> <text>reciprocal insurers; or</text> </level> <level label="9"> <text>insurance written through:</text> <level label="i"> <text>the Maryland Automobile Insurance Fund; or</text> </level> <level label="ii"> <text>the Maryland Property Insurance Availability Program.</text> </level> </level> </level> <level label="b"> <text>This section does not alter the requirements of § 10-119 of this subtitle.</text> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="3"> <text>A policy is not invalid because it does not have the required signature or countersignature.</text> </level> </level> <level label="d"> <level label="1"> <text>A person may not sign or countersign a policy or endorsement subject to this section unless the person:</text> <level label="i"> <text>is a licensed insurance producer;</text> </level> <level label="ii"> <text>is a resident of this State;</text> </level> <level label="iii"> <text>is compensated by commissions on policies subject to this section; and</text> </level> <level label="iv"> <text>is not an employee or officer of the insurer issuing the policy.</text> </level> </level> <level label="2"> <text>This section does not prevent an insurance producer from:</text> <level label="i"> <text>delegating the duty of signing or countersigning to employees of the insurance producer that are not also employees of lending institutions; or</text> </level> <level label="ii"> <text>directing the payment of commissions on policies subject to this section to a corporation or partnership insurance agency or otherwise.</text> </level> </level> </level> <level label="e"> <text>An insurance producer may not countersign a policy or endorsement unless the policy or endorsement states, as applicable:</text> <level label="1"> <text>the rates or premiums;</text> </level> <level label="2"> <text>a description of the property insured; and</text> </level> <level label="3"> <text>the name and address of the insured.</text> </level> </level> <level label="f"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-128.1" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="10-129" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <text>A person other than an independent insurance producer may not be represented to the public as an independent insurance producer.</text> </section> <section article="gin" article_name="Insurance" number="10-130" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>Except as otherwise provided in §§ 10–102, 10–119, and 10–122 of this subtitle and § 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.</text> </level> <level label="b"> <text>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:</text> <level label="1"> <text>commissions on renewal premiums on existing policies; or</text> </level> <level label="2"> <text>other deferred commissions.</text> </level> </level> <level label="c"> <text>Unless the payment would violate § 27–209 or § 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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-131" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <text>A person that violates § 10-103(b) or (c), § 10-130, or § 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.</text> </section> <section article="gin" article_name="Insurance" number="10-132" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <text>A title insurance producer that willfully or knowingly violates § 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.</text> </section> <section article="gin" article_name="Insurance" number="10-133" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="1" subtitle_name="Insurance Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>A licensed insurance producer may not enter into an exclusive appointment agreement with an authorized insurer that issues medical professional liability insurance.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-201" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Adviser” means a person that, for compensation:</text> <level label="1"> <text>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:</text> <level label="i"> <text>the terms, conditions, benefits, coverage, or premium of a policy, annuity contract, or pure endowment contract; or</text> </level> <level label="ii"> <text>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</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>in or on advertisements, cards, signs, circulars, letterheads, or elsewhere; or</text> </level> <level label="ii"> <text>in any other manner in which public announcements are made.</text> </level> </level> </level> <level label="c"> <text>“License” means a license issued by the Commissioner to act as an adviser.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-202" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Guaranteed investment contract” means an agreement between an insurer and an entity listed in subsection (b)(5)(ii)2 of this section that:</text> <level label="i"> <text>permits withdrawals by the purchaser for specified purposes; and</text> </level> <level label="ii"> <text>contains a general obligation of the insurer to repay a deposit plus interest.</text> </level> </level> <level label="3"> <text>“Synthetic investment contract” means an agreement between an insurer and an entity listed in subsection (b)(5)(ii)2 of this section that:</text> <level label="i"> <text>permits withdrawals by the purchaser for specified purposes; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="b"> <text>This subtitle does not apply to:</text> <level label="1"> <text>an officer, employee, insurance producer, or other representative of an authorized insurer while acting for the authorized insurer;</text> </level> <level label="2"> <text>an insurance producer that holds a license while acting as an insurance producer for a client;</text> </level> <level label="3"> <text>an attorney at law of the State while acting within the scope of the legal profession;</text> </level> <level label="4"> <text>a licensed public adjuster while acting within the scope of the public adjuster’s license; and</text> </level> <level label="5"> <text>an individual:</text> <level label="i"> <text>who is employed by an investment adviser registered with the Securities and Exchange Commission;</text> </level> <level label="ii"> <text>whose only clients in the State each:</text> <level label="1"> <text>has assets of not less than $5,000,000; and</text> </level> <level label="2"> <text>is one of the following types of institutional investors, whether acting for itself or as a trustee or fiduciary with investment control:</text> </level> <level label="A"> <text>an investment company, as defined in the Investment Company Act of 1940;</text> </level> <level label="B"> <text>an investment adviser registered with the Securities and Exchange Commission;</text> </level> <level label="C"> <text>an adviser, as defined in § 10-201 of this subtitle;</text> </level> <level label="D"> <text>a federal covered adviser, as defined in the Maryland Securities Act, Title 11 of the Corporations and Associations Article;</text> </level> <level label="E"> <text>a broker-dealer;</text> </level> <level label="F"> <text>a bank, trust company, or savings and loan association;</text> </level> <level label="G"> <text>a collective investment fund or common trust fund maintained by a bank or trust company;</text> </level> <level label="H"> <text>an insurer;</text> </level> <level label="I"> <text>an employee benefit plan;</text> </level> <level label="J"> <text>a governmental agency or instrumentality; or</text> </level> <level label="K"> <text>any other type of institutional investor, as designated by the Commissioner; and</text> </level> </level> <level label="iii"> <text>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.</text> </level> </level> </level> <level label="c"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-203" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <level label="a"> <text>Except as otherwise provided in this subtitle or §§ 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.</text> </level> <level label="b"> <text>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 § 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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-204" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <level label="a"> <text>To qualify for a license, an applicant must be an individual who meets the requirements of this section.</text> </level> <level label="b"> <text>An applicant must be trustworthy and competent to act as an adviser so as not to jeopardize the public interest.</text> </level> <level label="c"> <text>A license may be issued to:</text> <level label="1"> <text>a resident of the State who takes and passes the examination required under subsection (d) of this section;</text> </level> <level label="2"> <text>a resident of the State who:</text> <level label="i"> <text>is a member in good standing of the Society of Actuaries or the Casualty Actuarial Society;</text> </level> <level label="ii"> <text>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;</text> </level> <level label="iii"> <text>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;</text> </level> <level label="iv"> <text>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;</text> </level> <level label="v"> <text>is currently certified by the Certified Financial Planner Board of Standards to use the marks Certified Financial Planner and CFP; or</text> </level> <level label="vi"> <text>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</text> </level> </level> <level label="3"> <level label="i"> <text>a nonresident of the State who is licensed as an insurance adviser in the nonresident’s state of residence; or</text> </level> <level label="ii"> <text>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:</text> <level label="1"> <text>an insurance adviser’s license; or</text> </level> <level label="2"> <text>the equivalent of an insurance adviser’s license.</text> </level> </level> </level> </level> <level label="d"> <level label="1"> <text>The Commissioner shall determine the trustworthiness and competency of each applicant to act as an adviser in the State.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="e"> <level label="1"> <text>Before taking the examination required under subsection (d) of this section, an applicant shall pay the application fee required by § 2-112 of this article.</text> </level> <level label="2"> <text>After an applicant has been notified that the applicant has passed the examination, the applicant shall pay the applicable license fee required by § 2-112 of this article.</text> </level> <level label="3"> <text>An applicant who is not required to take an examination shall pay the applicable license fee required by § 2-112 of this article.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-205" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <text>An applicant for a license shall file with the Commissioner an application on the form that the Commissioner provides.</text> </section> <section article="gin" article_name="Insurance" number="10-206" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <text>An applicant for a license shall file with the Commissioner a bond that:</text> <level label="1"> <text>is approved by the Commissioner as to form and sufficiency of security;</text> </level> <level label="2"> <text>is executed by the applicant and an authorized surety insurer;</text> </level> <level label="3"> <text>is in the penal sum of $1,000;</text> </level> <level label="4"> <text>is conditioned on the applicant faithfully performing the duties of an adviser;</text> </level> <level label="5"> <text>runs to the State; and</text> </level> <level label="6"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-207" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <text>The Commissioner shall issue a license to each applicant who meets the requirements of this subtitle.</text> </section> <section article="gin" article_name="Insurance" number="10-208" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <text>A license does not authorize the licensee to:</text> <level label="1"> <text>adjust losses; or</text> </level> <level label="2"> <text>receive compensation from an insurer or insurance producer for the sale or placement of insurance.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-210" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <text>A licensee may conduct an insurance advisory business as a sole proprietorship, partnership, association, or corporation if:</text> <level label="1"> <text>each individual who acts as an adviser is licensed under this subtitle; and</text> </level> <level label="2"> <text>the trade name of the business is registered with the Commissioner.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-211" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <level label="a"> <text>A license expires every other year on the date stated on the license unless renewed as provided in this section.</text> </level> <level label="b"> <text>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:</text> <level label="1"> <text>the process for renewing the license;</text> </level> <level label="2"> <text>the date by which the Commissioner must receive the renewal application; and</text> </level> <level label="3"> <text>the amount of the renewal fee.</text> </level> </level> <level label="c"> <text>Before a license expires, the holder of the license periodically may renew it for an additional 2–year term, if the holder:</text> <level label="1"> <text>otherwise is entitled to a license;</text> </level> <level label="2"> <text>files with the Commissioner a renewal application:</text> <level label="i"> <text>on the form that the Commissioner provides; or</text> </level> <level label="ii"> <text>in an electronic format that the Commissioner approves;</text> </level> </level> <level label="3"> <text>pays to the Commissioner the renewal fee required by § 2–112 of this article;</text> </level> <level label="4"> <text>is in compliance with the bond requirement of § 10–206 of this subtitle; and</text> </level> <level label="5"> <text>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.</text> </level> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>is in a form capable of being processed by that system; and</text> </level> <level label="iii"> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> </level> </level> <level label="f"> <level label="1"> <text>The Commissioner shall renew the license of each holder who meets the requirements of this section.</text> </level> <level label="2"> <text>If the holder of a license files an application for renewal before the license expires, the license shall remain in effect until:</text> <level label="i"> <text>the Commissioner issues a renewal license; or</text> </level> <level label="ii"> <text>5 days after the Commissioner refuses to renew the license and gives notice of the refusal to the holder.</text> </level> </level> </level> <level label="g"> <text>The Commissioner may adopt regulations to carry out this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-211.1" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <level label="a"> <text>On or before September 30 of the renewal year, a person whose insurance adviser’s license has expired may reinstate the expired license by:</text> <level label="1"> <text>filing with the Commissioner the appropriate reinstatement application;</text> </level> <level label="2"> <text>paying to the Commissioner the applicable reinstatement fee required under subsection (b) of this section; and</text> </level> <level label="3"> <text>complying with the bond requirement of § 10-206 of this subtitle.</text> </level> </level> <level label="b"> <level label="1"> <text>The fee for a reinstatement under this section shall be:</text> <level label="i"> <text>the amount charged for a full renewal period for the type of license held by the person seeking the reinstatement; and</text> </level> <level label="ii"> <level label="1"> <text>$25 for reinstatement during the period from July 1 through July 31;</text> </level> <level label="2"> <text>$50 for reinstatement during the period from August 1 through August 31; and</text> </level> <level label="3"> <text>$75 for reinstatement during the period from September 1 through September 30.</text> </level> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>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 § 10-205 of this subtitle and meet any other requirements specified by the Commissioner in regulation.</text> </level> <level label="e"> <text>The Commissioner may adopt regulations to carry out this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-212" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <level label="a"> <text>Subject to the hearing provisions of Title 2 of this article, the Commissioner may suspend or revoke a license if the licensee:</text> <level label="1"> <text>has violated this article;</text> </level> <level label="2"> <text>has violated any law while acting as an adviser;</text> </level> <level label="3"> <text>has made a material misstatement in the application for the license;</text> </level> <level label="4"> <text>has been guilty of fraudulent or dishonest practices; or</text> </level> <level label="5"> <text>has demonstrated incompetency or untrustworthiness to act as an adviser.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>On the filing of a complaint, the Commissioner, after notice and hearing, shall determine whether to suspend or revoke the license.</text> </level> </level> <level label="c"> <text>An adviser whose license has been revoked may not obtain another license or renew a license for at least 1 year after:</text> <level label="1"> <text>the date of revocation, if there is no judicial review; or</text> </level> <level label="2"> <text>the final determination in the judicial proceeding confirming the revocation, if there is judicial review.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-213" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <text>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:</text> <level label="1"> <text>registered mail addressed to the applicant’s or licensee’s last address of record with the Commissioner; or</text> </level> <level label="2"> <text>electronic means in accordance with § 2–116 of this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-214" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-215" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="2" subtitle_name="Advisers"> <level label="a"> <text>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:</text> <level label="1"> <text>the agreement is in writing;</text> </level> <level label="2"> <text>the agreement is executed personally in duplicate by the person to be charged or by the legal representative of the person;</text> </level> <level label="3"> <text>a duplicate of the agreement is delivered to and kept by the person when it is signed by that person;</text> </level> <level label="4"> <text>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</text> </level> <level label="5"> <text>the agreement is in the form that the Commissioner currently approves.</text> </level> </level> <level label="b"> <level label="1"> <text>All forms of statements, receipts, and agreements used by licensees must be filed with and approved by the Commissioner as:</text> <level label="i"> <text>conforming to the requirements of this section;</text> </level> <level label="ii"> <text>not inconsistent with law; and</text> </level> <level label="iii"> <text>not misleading in any way.</text> </level> </level> <level label="2"> <text>The Commissioner may disapprove a form if the Commissioner finds that the form:</text> <level label="i"> <text>contains any provision or any title, heading, backing, or other indication of its contents that is likely to be misleading; or</text> </level> <level label="ii"> <text>omits any provision that the Commissioner requires to make the form clear and not misleading.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-301" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="3" subtitle_name="Bail Bondsmen"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Bail bond” means a written obligation of a defendant, with or without a surety or collateral security, that:</text> <level label="1"> <text>is conditioned on the appearance of the defendant as required; and</text> </level> <level label="2"> <text>provides for the payment of a penal sum according to its terms.</text> </level> </level> <level label="c"> <text>“Bail bondsman” means an authorized insurance producer of a surety insurer.</text> </level> <level label="d"> <text>“Collateral security” means any property deposited, pledged, or encumbered to secure the performance of a bail bond.</text> </level> <level label="e"> <text>“License” means a license issued by the Commissioner to provide bail bondsman services.</text> </level> <level label="f"> <text>“Provide bail bondsman services” means to provide any service in the bail bondsman trade.</text> </level> <level label="g"> <level label="1"> <text>“Surety” means a person, other than the defendant, that guarantees the appearance of the defendant by executing a bail bond.</text> </level> <level label="2"> <text>“Surety” includes an uncompensated or accommodation surety.</text> </level> </level> <level label="h"> <text>“Surety insurer” means a person that, for compensation, directly or through an authorized insurance producer, acts as a surety on a bail bond.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-302" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="3" subtitle_name="Bail Bondsmen"> <text>Except as provided in § 10–309 of this subtitle, this subtitle does not apply to bail bondsmen that provide bail bondsman services under § 5–203 of the Criminal Procedure Article.</text> </section> <section article="gin" article_name="Insurance" number="10-303" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="3" subtitle_name="Bail Bondsmen"> <text>The Commissioner shall adopt regulations to carry out this subtitle.</text> </section> <section article="gin" article_name="Insurance" number="10-304" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="3" subtitle_name="Bail Bondsmen"> <level label="a"> <text>Except as provided in §§ 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.</text> </level> <level label="b"> <text>A license issued by the Commissioner under this subtitle is identical to a license issued under Subtitle 1 of this title.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-305" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="3" subtitle_name="Bail Bondsmen"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="10-306" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="3" subtitle_name="Bail Bondsmen"> <text>The Commissioner shall set licensing fees that are sufficient to cover the expenses of licensing bail bondsmen under this subtitle.</text> </section> <section article="gin" article_name="Insurance" number="10-307" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="3" subtitle_name="Bail Bondsmen"> <text>Each bail bondsman must comply with any continuing education requirements that the Commissioner sponsors or approves.</text> </section> <section article="gin" article_name="Insurance" number="10-308" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="3" subtitle_name="Bail Bondsmen"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="10-309" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="3" subtitle_name="Bail Bondsmen"> <level label="a"> <text>This section applies to bail bondsmen licensed under this subtitle and to bail bondsmen that provide bail bondsman services under § 5–203 of the Criminal Procedure Article.</text> </level> <level label="b"> <text>A bail bondsman may arrange to accept payment for the premium charged for a bail bond in installments.</text> </level> <level label="c"> <text>If a bail bondsman arranges to accept payment for the premium charged for a bail bond in installments, the installment agreement:</text> <level label="1"> <text>shall be in a form adopted by the Commissioner;</text> </level> <level label="2"> <text>shall include:</text> <level label="i"> <text>the total amount of the premium owed;</text> </level> <level label="ii"> <text>the amount of any down payment made;</text> </level> <level label="iii"> <text>the balance amount owed to the bail bondsman or the bail bondsman’s insurer;</text> </level> <level label="iv"> <text>the amount and due date of each installment payment; and</text> </level> <level label="v"> <text>the total number of installment payments required to pay the amount due; and</text> </level> </level> <level label="3"> <text>may not include a confessed judgment clause that waives a consumer’s right to assert a legal defense to an action.</text> </level> </level> <level label="d"> <text>If a bail bondsman arranges to accept payment of the premium charged for a bail bond in installments, the bail bondsman shall:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>keep and maintain records of all collection attempts, installment agreements, and affidavits of surety.</text> </level> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The bail bondsman shall make the records required under this section available to the Commissioner for inspection.</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="f"> <text>If a bail bondsman violates any provision of this section, the Commissioner may take any actions authorized under § 10–126 of this title.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-401" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Business entity” has the meaning stated in § 10–101 of this title.</text> </level> <level label="c"> <text>“Home state” means:</text> <level label="1"> <text>the state where a public adjuster’s principal place of residence or principal place of business is located; or</text> </level> <level label="2"> <text>the state a public adjuster designates under § 10–409(a)(2) of this subtitle.</text> </level> </level> <level label="d"> <text>“Immediate family member” means a public adjuster’s:</text> <level label="1"> <text>spouse;</text> </level> <level label="2"> <text>child;</text> </level> <level label="3"> <text>child’s spouse;</text> </level> <level label="4"> <text>parent;</text> </level> <level label="5"> <text>spouse’s parent;</text> </level> <level label="6"> <text>sibling; or</text> </level> <level label="7"> <text>sibling’s spouse.</text> </level> </level> <level label="e"> <text>“License” means a license issued by the Commissioner to act as a public adjuster.</text> </level> <level label="f"> <text>“Marketing” means the distribution of advertising materials regarding the services of a public adjuster.</text> </level> <level label="g"> <level label="1"> <text>“Public adjuster” means a person who for compensation or any other thing of value:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>except as provided in § 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</text> </level> <level label="iii"> <text>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.</text> </level> </level> <level label="2"> <text>“Public adjuster” does not include a person that investigates, adjusts, or appraises claims for loss or damage covered by a motor vehicle insurance policy.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-402" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <text>This subtitle does not apply to:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>an insurance producer that acts as an adjuster without compensation for an insured for whom the insurance producer is acting as an insurance producer;</text> </level> <level label="3"> <text>an attorney at law who does not:</text> <level label="i"> <text>regularly act as a public adjuster; and</text> </level> <level label="ii"> <text>represent to the public by sign, advertisement, or otherwise that the attorney at law acts as a public adjuster;</text> </level> </level> <level label="4"> <text>a person who negotiates or settles claims arising under:</text> <level label="i"> <text>a life, health, or motor vehicle insurance policy; or</text> </level> <level label="ii"> <text>an annuity contract;</text> </level> </level> <level label="5"> <text>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;</text> </level> <level label="6"> <text>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</text> </level> <level label="7"> <text>a person who settles subrogation claims between insurers.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-403" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <text>Except as otherwise provided in this subtitle or §§ 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.</text> </level> <level label="b"> <text>Marketing on behalf of a public adjuster, as defined in §�10–401 of this subtitle, does not require a license.</text> </level> <level label="c"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-404" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <text>To qualify for a license, an applicant must be:</text> <level label="1"> <text>an individual who meets the requirements of subsection (b) of this section; or</text> </level> <level label="2"> <text>a business entity that meets the requirements of subsection (c) of this section.</text> </level> </level> <level label="b"> <level label="1"> <text>An individual applicant must be trustworthy and competent to transact business as a public adjuster so as to safeguard the interests of the public.</text> </level> <level label="2"> <text>Except as otherwise provided in this subsection, an individual applicant shall:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>pay the license fee required by § 2–112 of this article.</text> </level> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="c"> <text>A business entity applicant must:</text> <level label="1"> <text>be trustworthy and competent to transact business as a public adjuster so as to safeguard the interests of the public;</text> </level> <level label="2"> <text>employ one or more individual licensed public adjusters; and</text> </level> <level label="3"> <text>pay the applicable license fee required by § 2–112 of this article.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-405" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <text>An applicant for an initial license shall file with the Commissioner an application on the form that the Commissioner provides.</text> </level> <level label="b"> <text>The application form shall require:</text> <level label="1"> <text>the name and address of the applicant;</text> </level> <level label="2"> <text>whether any other insurance license or certificate has been issued to the applicant;</text> </level> <level label="3"> <text>for a business entity applicant:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>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</text> </level> </level> <level label="4"> <text>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.</text> </level> </level> <level label="c"> <text>An application shall be signed under oath:</text> <level label="1"> <text>in the case of an individual applicant, by the applicant; or</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-406" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <text>The Commissioner shall issue a license to each applicant who meets the requirements of this subtitle.</text> </section> <section article="gin" article_name="Insurance" number="10-407" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <text>The Commissioner may adopt regulations that specify:</text> <level label="1"> <text>the scope, type, conduct, and grading of the written examination; and</text> </level> <level label="2"> <text>the frequency, times, and locations within the State where the written examination will be held.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-408" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <text>A license expires every other year on the date stated on the license unless renewed as provided in this section.</text> </level> <level label="b"> <text>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:</text> <level label="1"> <text>the process for renewing the license;</text> </level> <level label="2"> <text>the date by which the Commissioner must receive the renewal application for the renewal to be issued and mailed before the license expires; and</text> </level> <level label="3"> <text>the amount of the renewal fee.</text> </level> </level> <level label="c"> <text>Before a license expires, the holder of the license may renew it for an additional 2–year term, if the holder:</text> <level label="1"> <text>otherwise is entitled to a license;</text> </level> <level label="2"> <text>files with the Commissioner a renewal application:</text> <level label="i"> <text>on the form that the Commissioner provides; or</text> </level> <level label="ii"> <text>in an electronic format that the Commissioner approves;</text> </level> </level> <level label="3"> <text>completes the continuing education requirements under subsection (e) of this section; and</text> </level> <level label="4"> <text>pays to the Commissioner the renewal fee required by § 2–112 of this article.</text> </level> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>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.</text> </level> <level label="5"> <text>The Commissioner may grant a waiver to a public adjuster who has requested a waiver for reasons that the Commissioner determines warrant the waiver.</text> </level> <level label="6"> <text>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.</text> </level> </level> <level label="f"> <text>A nonresident license holder shall be deemed to have met the continuing education requirements of this section if:</text> <level label="1"> <text>the nonresident license holder satisfies the continuing education requirements of the home state of the nonresident license holder; and</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="g"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>is in a form capable of being processed by that system; and</text> </level> <level label="iii"> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> </level> </level> <level label="h"> <level label="1"> <text>The Commissioner shall renew the license of each holder who meets the requirements of this section.</text> </level> <level label="2"> <text>If the holder of a license files an application for renewal before the license expires, the license shall remain in effect until:</text> <level label="i"> <text>the Commissioner issues a renewal license; or</text> </level> <level label="ii"> <text>5 days after the Commissioner refuses in writing to renew the license and serves notice of the refusal on the holder.</text> </level> </level> </level> <level label="i"> <text>The Commissioner may adopt regulations to carry out this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-408.1" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <text>For up to 1 year after the expiration date, a person whose public adjuster’s license has expired may reinstate the expired license by:</text> <level label="1"> <text>filing with the Commissioner the appropriate reinstatement application;</text> </level> <level label="2"> <text>paying to the Commissioner the applicable reinstatement fee required under subsection (b) of this section; and</text> </level> <level label="3"> <text>submitting proof of completion of the continuing education requirements in § 10–408 of this subtitle.</text> </level> </level> <level label="b"> <level label="1"> <text>The fee for a reinstatement under this section shall be:</text> <level label="i"> <text>the amount charged for a full renewal period for the type of license held by the person seeking the reinstatement; and</text> </level> <level label="ii"> <text>a reinstatement fee of $100.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="e"> <text>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 § 10–405 of this subtitle and meet the requirements specified by the Commissioner in regulation.</text> </level> <level label="f"> <text>The Commissioner may adopt regulations to carry out this section.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-409" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <level label="1"> <text>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:</text> <level label="i"> <text>the applicant has a valid public adjuster license from the home state of the applicant; and</text> </level> <level label="ii"> <text>the home state of the applicant awards nonresident public adjuster licenses to residents of the State on the same basis.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <text>Unless denied a license under § 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:</text> <level label="1"> <text>the person currently is licensed as a resident public adjuster and in good standing in the person’s home state;</text> </level> <level label="2"> <text>the person files an application on the form that the Commissioner provides;</text> </level> <level label="3"> <text>the person has paid the applicable fee pursuant to § 2–112 of this article; and</text> </level> <level label="4"> <text>the person’s home state awards nonresident public adjuster licenses to residents of this State on the same basis.</text> </level> </level> <level label="c"> <text>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 §§ 10–404 and 10–405 of this subtitle.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-409.1" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-410" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <text>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 §§ 2–210 through 2–214 of this article if the applicant or licensee:</text> <level label="1"> <text>has violated this article;</text> </level> <level label="2"> <text>has made a material misstatement in the application for the license;</text> </level> <level label="3"> <text>has engaged in fraudulent or dishonest practices;</text> </level> <level label="4"> <text>has demonstrated incompetency or untrustworthiness to act as a public adjuster;</text> </level> <level label="5"> <text>has misappropriated, converted, or unlawfully withheld money that belongs to an insurer, insurance producer, insured, or other person;</text> </level> <level label="6"> <text>has willfully and materially misrepresented the provisions of a policy;</text> </level> <level label="7"> <text>has been convicted of a felony, a crime of moral turpitude, or any criminal offense involving dishonesty or breach of trust;</text> </level> <level label="8"> <text>has willfully failed to comply with or has willfully violated a proper order or regulation of the Commissioner;</text> </level> <level label="9"> <text>has failed or refused to pay on demand money that belongs to an insurer, insurance producer, insured, or other person entitled to the money;</text> </level> <level label="10"> <text>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;</text> </level> <level label="11"> <text>has been denied a license or has had a license suspended or revoked in another state; or</text> </level> <level label="12"> <text>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.</text> </level> </level> <level label="b"> <level label="1"> <text>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 §§ 2–210 through 2–214 of this article, if an individual listed in paragraph (2) of this subsection:</text> <level label="i"> <text>violates any provision of this article;</text> </level> <level label="ii"> <text>is convicted of a felony, a crime of moral turpitude, or any criminal offense involving dishonesty or breach of trust; or</text> </level> <level label="iii"> <text>has any professional license suspended or revoked for a fraudulent or dishonest practice.</text> </level> </level> <level label="2"> <text>The sanctions provided for under this subsection may be imposed on a business entity if the violation was committed by an individual who:</text> <level label="i"> <text>is a public adjuster employed by the business entity;</text> </level> <level label="ii"> <level label="1"> <text>in the case of a limited liability company, is an officer, director, member, or manager;</text> </level> <level label="2"> <text>in the case of a partnership, is a partner; and</text> </level> <level label="3"> <text>in the case of a corporation, is a director, officer, or controlling owner; or</text> </level> </level> <level label="iii"> <text>has direct control over the fiscal management of the business entity.</text> </level> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-411" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <text>A contract for public adjuster services shall:</text> <level label="1"> <text>be in writing;</text> </level> <level label="2"> <text>be titled “Public Adjuster Contract”; and</text> </level> <level label="3"> <text>contain the following:</text> <level label="i"> <text>the legible full name of the public adjuster signing the contract, as specified in the records of the Administration;</text> </level> <level label="ii"> <text>the permanent business address and phone number of the public adjuster in the public adjuster’s home state;</text> </level> <level label="iii"> <text>the license number issued by the Administration to the public adjuster;</text> </level> <level label="iv"> <text>the insured’s full name, street address, insurance company name, and policy number, if known or on notification;</text> </level> <level label="v"> <text>a description of the loss and the location of the loss, if applicable;</text> </level> <level label="vi"> <text>a description of services to be provided to the insured;</text> </level> <level label="vii"> <text>the signatures of the public adjuster and the insured;</text> </level> <level label="viii"> <text>the dates when the contract was signed by the public adjuster and the insured, respectively;</text> </level> <level label="ix"> <text>notification to the insured that:</text> <level label="1"> <text>the public adjuster may incur out–of–pocket expenses on behalf of the insured; and</text> </level> <level label="2"> <text>these expenses incurred by the public adjuster and approved by the insured will be reimbursed to the public adjuster from the insurance proceeds; and</text> </level> </level> <level label="x"> <text>the full salary, fee, commission, compensation, or other consideration the public adjuster is to receive for services.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The public adjuster contract may specify that the public adjuster be named as a co–payee on an insurer’s payment of a claim.</text> </level> <level label="2"> <text>If the compensation is based on a share of the insurance settlement, the public adjuster contract shall specify the exact percentage to be paid.</text> </level> <level label="3"> <level label="i"> <text>A compensation provision in a public adjuster contract may not be redacted in any copy of the contract provided to the Commissioner.</text> </level> <level label="ii"> <text>A redaction of a compensation provision constitutes an omission of material fact in violation of this subtitle.</text> </level> </level> </level> <level label="c"> <text>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:</text> <level label="1"> <text>may not receive a commission consisting of a percentage of the total amount paid by an insurer to resolve a claim;</text> </level> <level label="2"> <text>shall inform the insured that loss recovery amount might not be increased by the insurer; and</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="e"> <text>A public adjuster contract may not contain any provision that:</text> <level label="1"> <text>allows the public adjuster’s percentage fee to be collected when money is due from, but not yet paid by, an insurance company;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>requires the insured to authorize an insurance company to issue a check only in the name of the public adjuster; or</text> </level> <level label="4"> <text>precludes either party from pursuing any civil remedy.</text> </level> </level> <level label="f"> <text>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:</text> <text>“(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:</text> <level label="i"> <text>“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.</text> </level> <level label="ii"> <text>“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.</text> </level> <level label="iii"> <text>“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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>A public adjuster is not a representative or an employee of the insurer.</text> </level> <level label="5"> <text>The salary, fee, commission, or other consideration of a public adjuster is the obligation of the insured, not the insurer.”.</text> </level> </level> <level label="g"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The public adjuster’s original contract shall be available at all times for inspection without notice by the Commissioner.</text> </level> <level label="3"> <text>A contract with an electronic signature shall constitute an original contract.</text> </level> </level> <level label="h"> <text>The public adjuster contract shall contain a statement that:</text> <level label="1"> <text>the insured has the right to rescind or cancel the contract within 10 business days after the date the contract was signed;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>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</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="i"> <text>The public adjuster shall give the insured written notice of the insured’s rights under the Maryland Consumer Protection Act.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-412" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="10-413" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <level label="1"> <text>A public adjuster shall maintain a complete record of each transaction entered into as a public adjuster.</text> </level> <level label="2"> <text>The records required by this section shall include:</text> <level label="i"> <text>the name of the insured;</text> </level> <level label="ii"> <text>the date, location, and amount of the loss;</text> </level> <level label="iii"> <text>a copy of the contract between the public adjuster and the insured;</text> </level> <level label="iv"> <text>the name of the insurer and the amount, expiration date, and number of each policy carried with respect to the loss;</text> </level> <level label="v"> <text>an itemized statement of the insured’s recoveries;</text> </level> <level label="vi"> <text>an itemized statement of all compensation received by the public adjuster, from any source, in connection with the loss;</text> </level> <level label="vii"> <text>a register of all money received, deposited, disbursed, or withdrawn in connection with a transaction with an insured, including:</text> <level label="1"> <text>fees, transfers, and disbursements from a trust account; and</text> </level> <level label="2"> <text>all transactions concerning all interest–bearing accounts;</text> </level> </level> <level label="viii"> <text>the name of the public adjuster who executed the public adjuster contract;</text> </level> <level label="ix"> <text>the name of the attorney representing the insured, if applicable; and</text> </level> <level label="x"> <text>the name of the claims representative of the insurance company.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The records shall be:</text> <level label="i"> <text>maintained for at least 5 years after the termination of the transaction with an insured; and</text> </level> <level label="ii"> <text>open to examination by the Commissioner at all times.</text> </level> </level> <level label="2"> <text>Any records required to be maintained under this section may be stored in an electronic format.</text> </level> </level> <level label="c"> <text>Records submitted to the Commissioner in accordance with this section that contain information that the public adjuster identifies in writing as proprietary:</text> <level label="1"> <text>shall be treated as confidential by the Commissioner; and</text> </level> <level label="2"> <text>may not be subject to Title 4, Subtitle 2 of the General Provisions Article.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-414" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <text>A public adjuster is obligated to:</text> <level label="1"> <text>serve with objectivity and complete loyalty the interest of the client alone;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>disburse insurance settlement payments received on behalf of the insured within 15 business days after the date of the payment from an insurer.</text> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>Unless full written disclosure has been made to the insured in accordance with § 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.</text> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <text>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.</text> </level> <level label="f"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The notice required under paragraph (1) of this subsection shall be:</text> <level label="i"> <text>provided to the Commissioner within 1 business day after the public adjuster enters into the contract; and</text> </level> <level label="ii"> <text>in a form and manner the Commissioner determines.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-415" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <text>A public adjuster shall adhere to the following general ethical requirements:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>a public adjuster may not represent or act as a company adjuster or as an independent adjuster on the same claim;</text> </level> <level label="4"> <text>the public adjuster contract may not be construed to prevent an insured from pursuing any civil remedy after the rescission or cancellation period under § 10–411(h) of this subtitle; and</text> </level> <level label="5"> <text>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.</text> </level> </level> <level label="b"> <text>A public adjuster may not agree to any loss settlement without the insured’s knowledge and consent.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-416" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="4" subtitle_name="Public Adjusters"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The report shall include:</text> <level label="i"> <text>a copy of any order;</text> </level> <level label="ii"> <text>any consent to an order; and</text> </level> <level label="iii"> <text>any other relevant legal documents.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The report shall include:</text> <level label="i"> <text>a copy of the initial filed complaint;</text> </level> <level label="ii"> <text>any order resulting from the hearing; and</text> </level> <level label="iii"> <text>any other relevant legal documents.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-501" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="5" subtitle_name="Vehicle Damage Adjusters and Appraisers"> <text>In this subtitle, “adjuster” or “appraiser” means a person that:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>under a contract, performs adjustments or appraisals for loss or damage covered by another form of security provided for under § 17-103(a)(2) of the Transportation Article.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-502" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="5" subtitle_name="Vehicle Damage Adjusters and Appraisers"> <text>This subtitle does not:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-503" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="5" subtitle_name="Vehicle Damage Adjusters and Appraisers"> <level label="a"> <text>An adjuster, appraiser, or insurance producer or employee of an insurer may not:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>require that an appraisal or repair be made in a specific repair shop;</text> </level> <level label="3"> <text>require that a claimant or insured use a specific contractor or repair shop for a repair service or repair product; or</text> </level> <level label="4"> <text>intimidate, coerce, or threaten a claimant or insured to use a specific contractor or repair shop for a repair service or repair product.</text> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-504" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="5" subtitle_name="Vehicle Damage Adjusters and Appraisers"> <text>A person that intentionally violates this subtitle is subject to:</text> <level label="1"> <text>a civil penalty not exceeding $1,000 for each violation; and</text> </level> <level label="2"> <text>denial, suspension, or revocation of any license held under this article.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-601" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="6" subtitle_name="Motor Vehicle Rental Companies"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Authorized representative” means an independent contractor of a motor vehicle rental company.</text> </level> <level label="c"> <level label="1"> <text>“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.</text> </level> <level label="2"> <text>“Motor vehicle rental company” does not include a peer–to–peer car sharing program as defined in § 19–520 of this article.</text> </level> </level> <level label="d"> <text>“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.</text> </level> <level label="e"> <text>“Renter” means any person obtaining the use of a vehicle from a motor vehicle rental company under the terms of a rental agreement.</text> </level> <level label="f"> <text>“Vehicle” means a motor vehicle:</text> <level label="1"> <text>of the private passenger type, including passenger vans, minivans, and sport utility vehicles; or</text> </level> <level label="2"> <text>of the cargo type, including cargo vans, pickup trucks, and trucks that do not require the operator to possess a commercial driver’s license.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-602" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="6" subtitle_name="Motor Vehicle Rental Companies"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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 § 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 § 10–604(b)(2) of this subtitle.</text> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>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:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>the charges for insurance coverage are itemized but not billed to the renter separately from the charges for the vehicle rental.</text> </level> </level> <level label="e"> <text>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:</text> <level label="1"> <text>may be compensated for offering or selling insurance coverage under this subtitle; but</text> </level> <level label="2"> <text>may not be compensated in a manner that is based solely on the number of customers who purchase rental vehicle insurance.</text> </level> </level> <level label="f"> <text>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.</text> </level> <level label="g"> <text>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:</text> <level label="1"> <text>maintain a register, on a form the Commissioner requires, containing:</text> <level label="i"> <text>the names of each employee or authorized representative who offers limited lines insurance on behalf of the motor vehicle rental company; and</text> </level> <level label="ii"> <text>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</text> </level> </level> <level label="2"> <text>submit the register for inspection by the Commissioner as the Commissioner requires.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-603" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="6" subtitle_name="Motor Vehicle Rental Companies"> <level label="a"> <text>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:</text> <level label="1"> <text>meets the requirements of § 10-604 of this subtitle;</text> </level> <level label="2"> <text>pays the fees for insurance producers required under § 2-112 of this article that are applicable to an insurance producer license; and</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="b"> <text>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 § 10–115 of this title.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-604" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="6" subtitle_name="Motor Vehicle Rental Companies"> <level label="a"> <text>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:</text> <level label="1"> <text>the policies have been filed with and approved by the Commissioner;</text> </level> <level label="2"> <text>the motor vehicle rental company holds an appointment with each authorized insurer, under § 10–118 of this title, that the motor vehicle rental company intends to represent;</text> </level> <level label="3"> <text>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:</text> <level label="i"> <text>summarize, clearly and correctly, the material terms of coverage, including limitations or exclusions;</text> </level> <level label="ii"> <text>identify the authorized insurer or insurers;</text> </level> <level label="iii"> <text>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;</text> </level> <level label="iv"> <text>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;</text> </level> <level label="v"> <text>describe the process by which the renter can file a claim; and</text> </level> <level label="vi"> <text>specify that any excess liability coverage purchased by the renter may duplicate coverage required to be provided under § 18–102(a)(2) of the Transportation Article;</text> </level> </level> <level label="4"> <text>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:</text> <level label="i"> <text>instruction about the kinds of insurance specified in subsection (b) of this section that can be offered to renters;</text> </level> <level label="ii"> <text>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</text> </level> <level label="iii"> <text>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</text> </level> </level> <level label="5"> <text>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.</text> </level> </level> <level label="b"> <text>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:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>one of the following kinds of insurance:</text> <level label="i"> <text>bodily injury liability;</text> </level> <level label="ii"> <text>property damage liability;</text> </level> <level label="iii"> <text>uninsured motorist insurance; or</text> </level> <level label="iv"> <text>if approved by the Commissioner, any other insurance coverage that is appropriate in connection with the rental of a vehicle.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-605" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="6" subtitle_name="Motor Vehicle Rental Companies"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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 § 17-103(b) of the Transportation Article.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-606" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="6" subtitle_name="Motor Vehicle Rental Companies"> <level label="a"> <text>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:</text> <level label="1"> <text>willfully violated this article or another law of the State that relates to insurance;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>failed to provide required disclosures;</text> </level> <level label="4"> <text>offered or sold unapproved insurance products;</text> </level> <level label="5"> <text>failed to hold an appointment with the insurer;</text> </level> <level label="6"> <text>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</text> </level> <level label="7"> <text>misrepresented pertinent facts or policy provisions that relate to the coverage offered or sold pursuant to this subtitle.</text> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>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:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>require that restitution be made to any person who has suffered financial injury because of the violation of this article.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-607" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="6" subtitle_name="Motor Vehicle Rental Companies"> <text>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.</text> </section> <section article="gin" article_name="Insurance" number="10-6A-01" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="6A" subtitle_name="Peer–to–peer Car Sharing Programs"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Authorized representative” means an independent contractor of a peer–to–peer car sharing program.</text> </level> <level label="c"> <text>“Car sharing period” has the meaning stated in § 19–520 of this article.</text> </level> <level label="d"> <text>“Peer–to–peer car sharing program” means a peer–to–peer car sharing program, as defined in § 19–520 of this article, that sells or offers a motor vehicle liability insurance policy issued by an insurer under § 19–520 of this article.</text> </level> <level label="e"> <text>“Peer–to–peer car sharing program agreement” has the meaning stated in § 19–520 of this article.</text> </level> <level label="f"> <text>“Shared vehicle driver” has the meaning stated in § 19–520 of this article.</text> </level> <level label="g"> <text>“Vehicle” means a motor vehicle:</text> <level label="1"> <text>of the private passenger type, including passenger vans, minivans, and sport utility vehicles; or</text> </level> <level label="2"> <text>of the cargo type, including cargo vans, pickup trucks, and trucks that do not require the operator to possess a commercial driver’s license.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-6A-02" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="6A" subtitle_name="Peer–to–peer Car Sharing Programs"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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 § 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 § 10–6A–04(b)(2) of this subtitle.</text> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>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:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>the charges for insurance coverage are itemized but not billed to the shared vehicle driver separately from the charges for the car sharing period.</text> </level> </level> <level label="e"> <text>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:</text> <level label="1"> <text>may be compensated for offering or selling insurance coverage under this subtitle; but</text> </level> <level label="2"> <text>may not be compensated in a manner that is based solely on the number of customers who purchase motor vehicle liability insurance.</text> </level> </level> <level label="f"> <text>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.</text> </level> <level label="g"> <text>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:</text> <level label="1"> <text>maintain a register, on a form the Commissioner requires, containing:</text> <level label="i"> <text>the names of each employee or authorized representative who offers limited lines insurance on behalf of the peer–to–peer car sharing program; and</text> </level> <level label="ii"> <text>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</text> </level> </level> <level label="2"> <text>submit the register for inspection by the Commissioner as the Commissioner requires.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-6A-03" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="6A" subtitle_name="Peer–to–peer Car Sharing Programs"> <level label="a"> <text>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:</text> <level label="1"> <text>meets the requirements of § 10–6A–04 of this subtitle;</text> </level> <level label="2"> <text>pays the fees for insurance producers required under § 2–112 of this article that are applicable to an insurance producer license; and</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="b"> <text>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 § 10–115 of this title.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-6A-04" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="6A" subtitle_name="Peer–to–peer Car Sharing Programs"> <level label="a"> <text>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:</text> <level label="1"> <text>the policies have been filed with and approved by the Commissioner as compliant with § 19–520(d) of this article;</text> </level> <level label="2"> <text>the peer–to–peer car sharing program holds an appointment with each authorized insurer, under § 10–118 of this title, that the peer–to–peer car sharing program intends to represent;</text> </level> <level label="3"> <text>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:</text> <level label="i"> <text>summarize, clearly and correctly, the material terms of coverage, including limitations or exclusions;</text> </level> <level label="ii"> <text>identify the authorized insurer or insurers;</text> </level> <level label="iii"> <text>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;</text> </level> <level label="iv"> <text>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;</text> </level> <level label="v"> <text>describe the process by which the shared vehicle driver can file a claim; and</text> </level> <level label="vi"> <text>specify that any excess liability coverage purchased by the shared vehicle driver may duplicate coverage required to be provided under § 18.5–102 of the Transportation Article;</text> </level> </level> <level label="4"> <text>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:</text> <level label="i"> <text>instruction about the kinds of insurance specified in subsection (b) of this section that can be offered to shared vehicle drivers;</text> </level> <level label="ii"> <text>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</text> </level> <level label="iii"> <text>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</text> </level> </level> <level label="5"> <text>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.</text> </level> </level> <level label="b"> <text>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:</text> <level label="1"> <text>in the amount of, in excess of, or optional to the coverages required to be provided under § 19–520(d)(1) of this article; and</text> </level> <level label="2"> <text>one of the following kinds of insurance:</text> <level label="i"> <text>bodily injury liability;</text> </level> <level label="ii"> <text>property damage liability;</text> </level> <level label="iii"> <text>uninsured motorist insurance; or</text> </level> <level label="iv"> <text>if approved by the Commissioner, any other insurance coverage that is appropriate in connection with a peer–to–peer car sharing program agreement.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-6A-06" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="6A" subtitle_name="Peer–to–peer Car Sharing Programs"> <level label="a"> <text>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:</text> <level label="1"> <text>willfully violated this article or another State law that relates to insurance;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>failed to provide required disclosures;</text> </level> <level label="4"> <text>offered or sold unapproved insurance products;</text> </level> <level label="5"> <text>failed to hold an appointment with the insurer;</text> </level> <level label="6"> <text>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</text> </level> <level label="7"> <text>misrepresented pertinent facts or policy provisions that relate to the coverage offered or sold under this subtitle.</text> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>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:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>require that restitution be made to any person who has suffered financial injury because of the violation of this article.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-6A-07" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="6A" subtitle_name="Peer–to–peer Car Sharing Programs"> <text>The Commissioner may adopt regulations to carry out the provisions of this subtitle, including regulations concerning:</text> <level label="1"> <text>the form and content of required disclosures to shared vehicle drivers;</text> </level> <level label="2"> <text>the training requirements for employees and authorized representatives of a peer–to–peer car sharing program; and</text> </level> <level label="3"> <text>the qualifications of the individuals who provide training for employees and authorized representatives of a peer–to–peer car sharing program.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-701" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="7" subtitle_name="Portable Electronics Vendors"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Covered customer” means a customer who elects to purchase coverage under a policy of portable electronics insurance issued to a vendor.</text> </level> <level label="c"> <text>“Customer” means a person who purchases or leases portable electronics or purchases service related to the use of portable electronics.</text> </level> <level label="d"> <text>“Location” means:</text> <level label="1"> <text>a physical location in the State; or</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="e"> <level label="1"> <text>“Portable electronics” means:</text> <level label="i"> <text>an electronic device, including its accessories, that:</text> <level label="1"> <text>is easily or conveniently transported by hand by an individual; and</text> </level> <level label="2"> <text>is used for communication, viewing, listening, recording, gaming, computing, or global positioning; and</text> </level> </level> <level label="ii"> <text>any other electronic device that is portable in nature that the Commissioner approves.</text> </level> </level> <level label="2"> <text>“Portable electronics” includes:</text> <level label="i"> <text>cellular or satellite phones;</text> </level> <level label="ii"> <text>pagers;</text> </level> <level label="iii"> <text>personal global positioning satellite units;</text> </level> <level label="iv"> <text>portable computers;</text> </level> <level label="v"> <text>portable audio listening, video viewing, or recording devices;</text> </level> <level label="vi"> <text>digital cameras;</text> </level> <level label="vii"> <text>video camcorders;</text> </level> <level label="viii"> <text>portable gaming systems;</text> </level> <level label="ix"> <text>docking stations; and</text> </level> <level label="x"> <text>automatic answering devices.</text> </level> </level> <level label="3"> <text>“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.</text> </level> </level> <level label="f"> <level label="1"> <text>“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:</text> <level label="i"> <text>loss by disappearance;</text> </level> <level label="ii"> <text>theft;</text> </level> <level label="iii"> <text>mechanical failure;</text> </level> <level label="iv"> <text>malfunction;</text> </level> <level label="v"> <text>damage; and</text> </level> <level label="vi"> <text>any other applicable peril, as approved by the Commissioner.</text> </level> </level> <level label="2"> <text>“Portable electronics insurance” does not include:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>a policy of insurance covering a seller’s or a manufacturer’s obligations under a warranty; or</text> </level> <level label="iii"> <text>a homeowner’s, renter’s, motor vehicle, or similar policy that covers loss or theft of portable electronics.</text> </level> </level> </level> <level label="g"> <text>“Portable electronics transaction” means:</text> <level label="1"> <text>the sale or lease of portable electronics by a vendor to a customer; or</text> </level> <level label="2"> <text>the sale of service related to the use of portable electronics by a vendor to a customer.</text> </level> </level> <level label="h"> <text>“Supervising entity” means a business entity that is:</text> <level label="1"> <text>an authorized insurer; or</text> </level> <level label="2"> <text>a licensed insurance producer that is appointed by an insurer to supervise the administration of a portable electronics insurance program.</text> </level> </level> <level label="i"> <text>“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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-702" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="7" subtitle_name="Portable Electronics Vendors"> <text>This subtitle does not apply to:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>a policy of insurance covering a seller’s or a manufacturer’s obligations under a warranty; or</text> </level> <level label="3"> <text>a homeowner’s, renter’s, motor vehicle, or similar policy that covers loss or theft of portable electronics.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-703" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="7" subtitle_name="Portable Electronics Vendors"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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:</text> <level label="1"> <text>trained under § 10–705 of this subtitle to act on behalf of the vendor; and</text> </level> <level label="2"> <text>acting under the supervision of the vendor.</text> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <level label="1"> <text>A vendor may bill and collect premiums from covered customers for coverage under a policy of portable electronics insurance.</text> </level> <level label="2"> <text>A vendor that bills and collects premiums under this section is not required to maintain the premiums collected in a segregated account if:</text> <level label="i"> <text>the vendor’s appointing insurer agrees in writing that segregation of funds is not required;</text> </level> <level label="ii"> <text>the vendor remits the funds collected to the appointing insurer or that insurer’s appointed insurance producer within 60 days after receipt; and</text> </level> <level label="iii"> <text>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.</text> </level> </level> <level label="3"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>A vendor may receive compensation for billing and collection services under a policy of portable electronics insurance.</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-704" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="7" subtitle_name="Portable Electronics Vendors"> <level label="a"> <text>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:</text> <level label="1"> <text>meets the requirements of § 10–705 of this subtitle;</text> </level> <level label="2"> <text>pays the fees for insurance producers required under § 2–112 of this article that are applicable to an insurance producer license; and</text> </level> <level label="3"> <text>submits to the Commissioner a sworn application for a limited lines license under this subtitle on the form required by the Commissioner.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>On request by the Commissioner, the registry shall be open to inspection and examination no later than 10 days after the request.</text> </level> </level> <level label="d"> <text>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 § 10–115 of this title.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-705" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="7" subtitle_name="Portable Electronics Vendors"> <level label="a"> <text>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:</text> <level label="1"> <text>the portable electronics insurance policies have been filed with and approved by the Commissioner;</text> </level> <level label="2"> <text>the vendor holds an appointment under § 10–118 of this title with each authorized insurer that the vendor intends to represent;</text> </level> <level label="3"> <text>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:</text> <level label="i"> <text>summarize the material terms of the coverage under the policy of portable electronics insurance including:</text> <level label="1"> <text>the identity of the insurer;</text> </level> <level label="2"> <text>the premium to be paid;</text> </level> <level label="3"> <text>any applicable deductible;</text> </level> <level label="4"> <text>the major features of the benefits of the coverage; and</text> </level> <level label="5"> <text>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;</text> </level> </level> <level label="ii"> <level label="1"> <text>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</text> </level> <level label="2"> <text>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;</text> </level> </level> <level label="iii"> <text>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;</text> </level> <level label="iv"> <text>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:</text> <level label="1"> <text>any requirement to pay a deductible;</text> </level> <level label="2"> <text>any requirement to return portable electronics;</text> </level> <level label="3"> <text>the maximum fee applicable if the customer fails to comply with a return requirement; and</text> </level> <level label="4"> <text>any requirement to file a proof of loss;</text> </level> </level> <level label="v"> <text>state that:</text> <level label="1"> <text>the customer may cancel coverage under the portable electronics insurance at any time; and</text> </level> <level label="2"> <text>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</text> </level> </level> <level label="vi"> <text>provide the toll–free consumer hotline telephone number of the Administration; and</text> </level> </level> <level label="4"> <text>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:</text> <level label="i"> <text>about the portable electronics insurance offered to customers of the vendor;</text> </level> <level label="ii"> <text>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;</text> </level> <level label="iii"> <text>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</text> </level> <level label="iv"> <text>about the other disclosures required by item (3) of this subsection.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The training required under subsection (a)(4) of this section may be provided in electronic form.</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-706" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="7" subtitle_name="Portable Electronics Vendors"> <text>Coverage under a policy of portable electronics insurance sold under this subtitle is primary to any other valid and collectible coverage.</text> </section> <section article="gin" article_name="Insurance" number="10-707" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="7" subtitle_name="Portable Electronics Vendors"> <level label="a"> <text>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:</text> <level label="1"> <text>willfully violated this article or another law of the State that relates to insurance;</text> </level> <level label="2"> <text>operated without a limited lines license as required under this subtitle;</text> </level> <level label="3"> <text>failed to provide the disclosures required under § 10–705 of this subtitle;</text> </level> <level label="4"> <text>offered or sold unapproved insurance products;</text> </level> <level label="5"> <text>failed to hold an appointment with an insurer;</text> </level> <level label="6"> <text>failed to train employees or authorized representatives as required under § 10–705 of this subtitle; or</text> </level> <level label="7"> <text>misrepresented pertinent facts or policy provisions concerning a policy of portable electronics insurance.</text> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>Instead of, or in addition to, suspending or revoking a limited lines license issued under this subtitle, the Commissioner may:</text> <level label="1"> <text>impose on the vendor a penalty of not more than $2,500 for each violation of this subtitle; and</text> </level> <level label="2"> <text>require that restitution be made to any person who has suffered financial injury because of a violation of this subtitle.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-708" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="7" subtitle_name="Portable Electronics Vendors"> <text>The Commissioner may adopt regulations to carry out this subtitle, including regulations concerning:</text> <level label="1"> <text>the form and content of required disclosures to customers;</text> </level> <level label="2"> <text>the training requirements for employees and authorized representatives of vendors; and</text> </level> <level label="3"> <text>the qualifications of the individuals who provide training.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-801" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="8" subtitle_name="Self-Service Storage Producers"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Authorized representative” means an independent contractor of an owner of a self–service storage facility.</text> </level> <level label="c"> <text>“Business entity” has the meaning stated in § 5–511 of this article.</text> </level> <level label="d"> <text>“Designated responsible producer” means an individual who:</text> <level label="1"> <text>holds a limited lines license under this subtitle; and</text> </level> <level label="2"> <text>is designated by the owner as responsible for the owner’s compliance with insurance laws, rules, and regulations of the State.</text> </level> </level> <level label="e"> <text>“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.</text> </level> <level label="f"> <text>“Owner” means the owner of a self–service storage facility.</text> </level> <level label="g"> <level label="1"> <text>“Personal property” means movable property that is not affixed to land.</text> </level> <level label="2"> <text>“Personal property” includes:</text> <level label="i"> <text>goods, wares, merchandise, household items, and furnishings;</text> </level> <level label="ii"> <text>a vehicle, as defined in § 11–176 of the Transportation Article; and</text> </level> <level label="iii"> <text>watercraft and motorized watercraft.</text> </level> </level> </level> <level label="h"> <text>“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.</text> </level> <level label="i"> <text>“Self–service storage producer” means:</text> <level label="1"> <text>an owner of a self–storage facility who holds a limited lines license under this subtitle; or</text> </level> <level label="2"> <text>a designated responsible producer.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-802" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="8" subtitle_name="Self-Service Storage Producers"> <level label="a"> <text>The Commissioner shall issue a limited lines license as a self–service storage producer to:</text> <level label="1"> <text>an owner of a self–service storage facility who meets the requirements of this subtitle; and</text> </level> <level label="2"> <text>an individual who:</text> <level label="i"> <text>is designated by the owner as responsible for the owner’s compliance with insurance laws, rules, and regulations of the State; and</text> </level> <level label="ii"> <text>meets the requirements of this subtitle.</text> </level> </level> </level> <level label="b"> <text>A limited lines license as a self–service storage producer authorizes the licensee to offer or sell insurance only:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>An owner of a self–service storage facility may not offer or sell insurance under this subtitle unless the owner, as a business entity:</text> <level label="1"> <text>holds a limited lines license under this subtitle; and</text> </level> <level label="2"> <text>has a designated responsible producer.</text> </level> </level> <level label="d"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-803" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="8" subtitle_name="Self-Service Storage Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>The application shall include:</text> <level label="1"> <text>the physical address of the company headquarters of the self–service storage producer; and</text> </level> <level label="2"> <text>a list of all self–service storage facilities where the self–service storage producer will conduct business under the limited lines license.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-804" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="8" subtitle_name="Self-Service Storage Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>A self–service storage producer shall notify the Commissioner of:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-805" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="8" subtitle_name="Self-Service Storage Producers"> <text>A self–service storage producer is not required to meet the continuing education requirements for insurance producers under Subtitle 1 of this title. </text> </section> <section article="gin" article_name="Insurance" number="10-806" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="8" subtitle_name="Self-Service Storage Producers"> <text>A self–service storage producer may not offer or sell insurance under this subtitle unless: </text> <level label="1"> <text>the self–service storage producer makes readily available to prospective occupants brochures or other written materials that:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>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;</text> </level> <level label="iii"> <text>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;</text> </level> <level label="iv"> <text>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;</text> </level> <level label="v"> <text>describe the process for filing a claim; and</text> </level> <level label="vi"> <text>include contact information for filing a complaint with the Commissioner;</text> </level> </level> <level label="2"> <text>all costs related to the insurance are stated in writing;</text> </level> <level label="3"> <text>evidence of coverage in a form approved by the Commissioner is provided to each occupant who purchases the coverage;</text> </level> <level label="4"> <text>the insurance is provided by an insurer authorized to transact the applicable kinds of insurance in the State; and</text> </level> <level label="5"> <text>as a condition of the sale of insurance, the self–service storage producer:</text> <level label="i"> <text>requires the occupant to execute a document acknowledging the amount of coverage under the policy purchased; and</text> </level> <level label="ii"> <text>if the occupant has contents in the leased space of a value greater than the coverage under the policy:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>requires the occupant to acknowledge receipt of the notice under item 1 of this item.</text> </level> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-807" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="8" subtitle_name="Self-Service Storage Producers"> <level label="a"> <text>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 § 10–808 of this subtitle.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>The designated responsible producer:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>shall use reasonable means to ensure compliance by the employees or authorized representatives with this subtitle;</text> </level> <level label="3"> <text>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</text> </level> <level label="4"> <text>shall submit the register for inspection by the Commissioner within 30 days after receiving a request by the Commissioner for inspection.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-808" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="8" subtitle_name="Self-Service Storage Producers"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>The training program required by subsection (a) of this section shall:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>provide basic instruction about the provisions of this subtitle; and</text> </level> <level label="4"> <text>include any other information the Commissioner may require.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-809" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="8" subtitle_name="Self-Service Storage Producers"> <text>A self–service storage producer or any of its employees or authorized representatives may not: </text> <level label="1"> <text>offer or sell insurance except in connection with and incidental to the rental of space at a self–service storage facility; or</text> </level> <level label="2"> <text>advertise, represent, or otherwise hold themselves out as authorized insurers or licensed insurance producers.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-810" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="8" subtitle_name="Self-Service Storage Producers"> <level label="a"> <text>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:</text> <level label="1"> <text>willfully violated this article or another law of the State that relates to insurance;</text> </level> <level label="2"> <text>operated without a limited lines license as required under this subtitle;</text> </level> <level label="3"> <text>failed to provide the disclosures required under § 10–806 of this subtitle;</text> </level> <level label="4"> <text>offered or sold unapproved insurance products;</text> </level> <level label="5"> <text>failed to train employees or authorized representatives as required under § 10–808 of this subtitle; or</text> </level> <level label="6"> <text>misrepresented pertinent facts or policy provisions concerning a policy for a self–service storage facility.</text> </level> </level> <level label="b"> <text>Instead of, or in addition to, suspending or revoking a limited lines license issued under this subtitle, the Commissioner may:</text> <level label="1"> <text>impose on the self–service storage producer a penalty of not more than $2,500 for each violation of this subtitle; and</text> </level> <level label="2"> <text>require that restitution be made to any person who has suffered financial injury because of a violation of this subtitle.</text> </level> </level> </section> <section article="gin" article_name="Insurance" number="10-811" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="8" subtitle_name="Self-Service Storage Producers"> <text>This subtitle may not be construed to prohibit: </text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </section> <section article="gin" article_name="Insurance" number="10-812" title_number="10" title_name="Regulation of Insurance Professions" subtitle_number="8" subtitle_name="Self-Service Storage Producers"> <text>The Commissioner may adopt regulations to carry out this subtitle, including regulations concerning:</text> <level label="1"> <text>the form and content of required disclosures to customers;</text> </level> <level label="2"> <text>the training requirements for employees or authorized representatives who offer or sell limited lines insurance under this subtitle; and</text> </level> <level label="3"> <text>the qualifications of the individuals who provide the training required under § 10–808 of this subtitle.</text> </level> </section>