Title 4. General Requirements for Insurers — Subtitle 2. Unauthorized Insurers
Statutes in effect as of October 1, 2026.
Md. Code Ann., Ins. § 4-201 (2026)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers
§ 4–201LinkCopy Citation
(a)
In this section, “industrial insured” means an insured that:
(1)
procures the insurance of a risk by the services of a full-time employee acting as an insurance manager or buyer or a regularly and continuously retained qualified insurance consultant;
(2)
has aggregate annual premiums for insurance on all risks that total at least $100,000; or
(3)
has at least 25 full-time employees.
(b)
This subtitle does not apply to:
(1)
transactions in the State that involve, and are subsequent to the issuance of, a policy that was lawfully solicited, written, and delivered outside of the State that covers only a subject of insurance not resident, located, or expressly to be performed in the State at the time of issuance of the policy;
(2)
an individual life insurance policy or individual health insurance policy in force on July 1, 1968;
(3)
reinsurance of the liability of an authorized insurer;
(4)
insurance against perils of navigation, transit, or transportation on hulls, freights, or disbursements, or other shipowner interest, on goods, wares, merchandise, and all other personal property and interests in personal property in the course of exportation from or importation into a country, or transportation coastwise, including transportation by land or water from point of origin to final destination and including war risks, and on marine builder's risks, dry docks, and marine railways, including insurance of ship repairer's liability, and protection and indemnity insurance, except for insurance covering:
(i)
bridges and tunnels;
(ii)
pleasure craft that are under 60 feet in length and are owned and used for pleasure and not for business, hire, or other commercial use;
(iii)
fishing vessels under 50 gross tons that are not part of a fleet of three or more vessels; or
(iv)
charter or head boats under 50 gross tons that are not part of a fleet of three or more vessels;
(5)
aircraft insurance;
(6)
insurance on property or operations of railroads engaged in interstate commerce;
(7)
surplus lines insurance effected in accordance with Title 3, Subtitle 3 of this article;
(8)
insurance against legal liability arising out of the ownership, operation, or maintenance of property with a permanent situs outside of the State; or
(9)
insurance against loss of or damage to property with a permanent situs outside of the State.
(c)
Except for the premium tax requirement of § 4-209 of this subtitle and the reporting requirement of § 4-210 of this subtitle, this subtitle does not apply to an insurer or underwriter issuing an insurance contract to an industrial insured.
Md. Code Ann., Ins. § 4-202 (2026)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers
§ 4–202LinkCopy Citation
(a)
The General Assembly finds that:
(1)
many residents of the State hold policies issued by insurers and other persons not authorized to do insurance business in the State;
(2)
these residents face the often insurmountable obstacle of asserting their legal rights under those policies in forums that are foreign to them and under laws and rules of practice that are unfamiliar to them; and
(3)
protection from the acts of insurers and other persons not authorized to do insurance business in the State can be achieved by:
(i)
maintaining fair and honest insurance markets;
(ii)
protecting the premium tax revenues of the State;
(iii)
protecting authorized insurers, which are subject to strict regulation, from unfair competition by unauthorized persons and unauthorized insurers; and
(iv)
protecting against evasion of the insurance regulatory laws of the State.
(b)
(1)
The General Assembly intends to subject certain insurers and other persons to the jurisdiction of the Commissioner, in proceedings before the Commissioner, and to the courts of the State in suits by or for the State and insureds or beneficiaries under insurance contracts.
(2)
To carry out this intent, the General Assembly provides for substituted service of process on certain insurers and other persons in any proceeding in a court and substituted service of any notice, order, pleading, or process on certain insurers and other persons in any proceeding before the Commissioner to enforce or effect full compliance with the insurance and tax laws of the State.
(c)
In carrying out the intent of this subtitle, the General Assembly declares that it is exercising:
(1)
its power to protect the residents of the State;
(2)
its power to define what constitutes doing an insurance business in the State; and
(3)
its powers and privileges under the McCarran-Ferguson Act.
Md. Code Ann., Ins. § 4-203 (2026)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers
§ 4–203LinkCopy Citation
(a)
This section does not apply to:
(1)
acceptance of service of process;
(2)
surplus lines insurance;
(3)
a transaction for which a certificate of authority is not required under § 4-101(b) of this title;
(4)
reinsurance, as authorized under Title 5, Subtitle 9 of this article;
(5)
an adjuster while providing services with respect to a claim under a policy lawfully solicited, issued, and delivered outside of the State; or
(6)
the professional services of an attorney at law.
(b)
With respect to a subject of insurance resident, located, or to be performed in the State, a person may not in the State directly or indirectly act as an insurance producer for, or otherwise represent or help on behalf of another, an unauthorized insurer to:
(1)
solicit, negotiate, or effect insurance or an annuity contract;
(2)
inspect risks;
(3)
fix rates;
(4)
investigate or adjust losses;
(5)
collect premiums; or
(6)
transact insurance business in any other manner.
Md. Code Ann., Ins. § 4-204 (2026)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers
§ 4–204LinkCopy Citation
(a)
(1)
A person may not accept for publication or printing in a newspaper, magazine, or other periodical, or for broadcast on radio or television in the State, an advertisement or other notice that directly or indirectly solicits business for or sets forth the advantages of doing business with an insurer, insurance producer, or other person, unless the person that will publish or broadcast the advertisement or notice has a certificate issued by the Commissioner stating that the insurer, insurance producer, or other person named in the certificate is authorized to transact insurance business in the State.
(2)
On application of any person, the Commissioner shall issue the certificate without charge.
(b)
A person may not publish or print in a newspaper, magazine, periodical, circular letter, pamphlet, or in any other manner, or broadcast by radio or television in the State, an advertisement or other notice that directly or indirectly solicits business for or sets forth the advantages of doing business with an insurer, insurance producer, or other person that is not authorized to transact insurance business in the State.
(c)
A manufacturer, jobber, wholesaler, or retailer may not distribute or cause to be distributed matchbooks or other advertising matter, except newspapers and magazines of general circulation, that directly or indirectly solicits business for or sets forth the advantages of doing business with an insurer, insurance producer, or other person that is not authorized to transact insurance business in the State.
Md. Code Ann., Ins. § 4-205 (2026)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers
§ 4–205LinkCopy Citation
(a)
This section does not apply to:
(1)
the lawful transaction of surplus lines insurance;
(2)
the lawful transaction of reinsurance by insurers;
(3)
transactions in the State that involve, and are subsequent to the issuance of, a policy that was lawfully solicited, written, and delivered outside of the State covering only a subject of insurance not resident, located, or expressly to be performed in the State at the time of issuance of the policy;
(4)
transactions that involve insurance contracts that are independently procured through negotiations occurring entirely outside of the State and that are reported and on which the premium tax is paid in accordance with §§ 4–210 and 4–211 of this subtitle;
(5)
an attorney while acting in the ordinary relation of attorney and client in the adjustment of claims or losses;
(6)
unless otherwise determined by the Commissioner, transactions in the State that involve group or blanket insurance or group annuities if the master policy of the group was lawfully issued and delivered in another state in which the person was authorized to engage in insurance business; or
(7)
a health care practitioner or set of health care practitioners, as defined in § 15–113 of this article, that accepts capitated payments in accordance with § 15–2102 of this article, but performs no other acts considered acts of an insurance business.
(b)
An insurer or other person may not, directly or indirectly, do any of the acts of an insurance business set forth in subsection (c) of this section, except as provided by and in accordance with the specific authorization of statute.
(c)
Any of the following acts in the State, effected by mail or otherwise, is considered to be doing an insurance business in the State:
(1)
making or proposing to make, as an insurer, an insurance contract;
(2)
making or proposing to make, as guarantor or surety insurer, a contract of guaranty or suretyship as a vocation and not merely incidental to another legitimate business or activity of the guarantor or surety insurer;
(3)
taking or receiving an application for insurance;
(4)
receiving or collecting premiums, commissions, membership fees, assessments, dues, or other consideration for insurance;
(5)
issuing or delivering an insurance contract to a resident of the State or a person authorized to do business in the State;
(6)
except as provided in subsection (d) of this section, with respect to a subject of insurance resident, located, or to be performed in the State, directly or indirectly acting as an insurance producer for, or otherwise representing or helping on behalf of another, an insurer or other person to:
(i)
solicit, negotiate, procure, or effect insurance or the renewal of insurance;
(ii)
disseminate information about coverage or rates;
(iii)
forward an application;
(iv)
deliver a policy or insurance contract;
(v)
inspect risks;
(vi)
fix rates;
(vii)
investigate or adjust claims or losses;
(viii)
transact matters arising out of an insurance contract after the insurance contract becomes effective; or
(ix)
in any other manner represent or help an insurer or other person to transact insurance business;
(7)
doing any kind of insurance business specifically recognized as doing an insurance business under statutes relating to insurance;
(8)
doing or proposing to do any insurance business that is substantially equivalent to any act listed in this subsection in a manner designed to evade the statutes relating to insurance; or
(9)
as an insurer transacting any other business in the State.
(d)
Subsection (c)(6) of this section does not prohibit a full-time salaried employee of a corporate insured from acting as an insurance manager or buyer in placing insurance for the corporate insured.
(e)
For purposes of this section, the venue of an act effected by mail is at the point where the matter transmitted by mail is delivered and takes effect.
Md. Code Ann., Ins. § 4-206 (2026)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers
§ 4–206LinkCopy Citation
(a)
An unauthorized foreign insurer or unauthorized alien insurer is deemed to have appointed the Commissioner to be the attorney of the unauthorized insurer for purposes of service of process in a proceeding instituted by or for an insured or beneficiary arising out of an insurance contract and to have agreed that service on the Commissioner has the same legal effect as personal service in the State on the unauthorized insurer, if the unauthorized insurer in the State, by mail or otherwise:
(1)
issues or delivers insurance contracts to residents of the State or corporations authorized to do business in the State;
(2)
solicits applications for insurance contracts;
(3)
collects premiums, membership fees, assessments, or other considerations for insurance contracts; or
(4)
transacts any other insurance business.
(b)
(1)
Service of process on the Commissioner under this subsection shall be made by:
(i)
delivering to the Commissioner or an individual in apparent charge of the office of the Commissioner two copies of the process; and
(ii)
paying to the Commissioner a service of process fee of $15.
(2)
Immediately after receipt of process, the Commissioner shall send one copy of the process by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to the unauthorized insurer at its last known principal place of business.
(3)
Service of process under this subsection is sufficient if:
(i)
within 10 days after delivering copies of the process to the Commissioner under paragraph (1) of this subsection, the plaintiff or plaintiff's attorney sends notice of the service and a copy of the process by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to the unauthorized insurer at its last known principal place of business; and
(ii)
on or before the date that the unauthorized insurer is required to appear or within any further time that the court allows, the plaintiff or plaintiff's attorney files with the clerk of the court in which the action is pending:
(1)
the unauthorized insurer's receipt, or the receipt issued by the United States Postal Service, showing the name of the sender of the letter and the name and address of the addressee; and
(2)
an affidavit of the plaintiff or plaintiff's attorney showing compliance with paragraph (1) of this subsection.
(4)
(i)
The service of process fee shall be taxed in the costs of the proceeding.
(ii)
A court may award reimbursement of the service of process fee to a prevailing plaintiff in any proceeding against an unauthorized insurer.
(iii)
The Commissioner:
(1)
shall account quarterly to the Comptroller for fees collected under this subsection; and
(2)
after deducting expenses for mailing the process under paragraph (2) of this subsection, shall pay the fees on accounting to the State Treasurer, for the use of the State.
(5)
The Commissioner shall keep a record of all process served on the Commissioner under this subsection.
(c)
As an alternative to service of process under subsection (b) of this section, service of process is valid if:
(1)
service of process is made on any person in the State that, on behalf of an unauthorized foreign insurer or unauthorized alien insurer, is doing an act of insurance business listed in § 4-205(c) of this subtitle;
(2)
within 10 days after service of process under item (1) of this subsection, the plaintiff or plaintiff's attorney sends a copy of the process by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to the unauthorized insurer at its last known principal place of business; and
(3)
on or before the date that the unauthorized insurer is required to appear or within any further time that the court allows, the plaintiff or plaintiff's attorney files with the clerk of the court in which the action is pending:
(i)
the unauthorized insurer's receipt, or the receipt issued by the United States Postal Service, showing the name of the sender of the letter and the name and address of the addressee; and
(ii)
an affidavit of the plaintiff or plaintiff's attorney showing compliance with item (1) of this subsection.
(d)
A judgment by default may not be entered until the expiration of 45 days after the date of filing of the affidavit of compliance.
(e)
This subtitle does not limit the right to serve any process, notice, or demand on an insurer or another person in any other manner authorized by law.
Md. Code Ann., Ins. § 4-207 (2026)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers
§ 4–207LinkCopy Citation
(a)
(1)
An unauthorized insurer or person that does an act of insurance business listed in § 4-205(c) of this subtitle is deemed to have appointed irrevocably the Secretary of State to be the attorney of the unauthorized insurer or person in a proceeding in a court by the Commissioner or the State, and on whom may be served any notice, order, pleading, or process in a proceeding before the Commissioner, and which proceeding arises from the unauthorized insurer or person doing an insurance business in the State.
(2)
An unauthorized insurer or person that does an act of insurance business listed in § 4-205(c) of this subtitle is deemed to have agreed that service on the Secretary of State under this section has the same legal effect as personal service in the State on the unauthorized insurer or person.
(3)
The deemed appointment of the Secretary of State binds the unauthorized insurer or person and any executor, administrator, personal representative, or successor in interest if a corporation, of the unauthorized insurer or person.
(b)
(1)
Service of process on the Secretary of State in a court proceeding or administrative proceeding under this section shall be made by delivering to the Secretary of State or an individual in apparent charge of the office of the Secretary of State two copies of the process in a court proceeding or the notice, order, pleading, or process in an administrative proceeding.
(2)
Immediately after receipt of process in a court proceeding or the notice, order, pleading, or process in an administrative proceeding, the Secretary of State shall mail one copy of the process or notice, order, pleading, or process to the defendant in the court proceeding, or to the person to whom the notice, order, pleading, or process is addressed or directed in the administrative proceeding, at its last known principal place of business.
(3)
Service of process under this section is sufficient if:
(i)
within 10 days after service on the Secretary of State under paragraph (1) of this subsection, the plaintiff or plaintiff's attorney in a court proceeding or the Commissioner in an administrative proceeding sends notice of the service and a copy of the court process, or the notice, order, pleading, or process in the administrative proceeding, by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, to the defendant in a court proceeding or the person to whom the notice, order, pleading, or process is addressed or directed in the administrative proceeding at its last known principal place of business; and
(ii)
on or before the date that the defendant is required to appear or respond in a court or administrative proceeding or within any further time that the court or Commissioner allows, the plaintiff or plaintiff's attorney in a court proceeding or the Commissioner in an administrative proceeding files with the clerk of the court in which the court proceeding is pending or with the Commissioner in an administrative proceeding:
(1)
the defendant's receipt, or the receipt issued by the United States Postal Service, showing the name of the sender of the letter and the name and address of the addressee; and
(2)
an affidavit of the plaintiff or plaintiff's attorney in a court proceeding, or the Commissioner in an administrative proceeding, showing compliance with paragraph (1) of this subsection.
(4)
A certificate by the Secretary of State that shows service in accordance with paragraph (1) of this subsection and is attached to the original or third copy of the process is sufficient evidence of service.
(5)
Service on the Secretary of State under this section is deemed service on the principal.
(6)
The Secretary of State shall keep a record of all process served on the Secretary of State under this section that shows the day and time of service.
(c)
A judgment or determination, by default, in any court or administrative proceeding in which court process or a notice, order, pleading, or process is served under this section may not be entered until the expiration of 45 days after the date of filing of the affidavit of compliance.
(d)
This section does not limit the right to serve any process, notice, order, pleading, or demand on an insurer or another person in any other manner authorized by law.
(e)
On request of the Commissioner, the Attorney General may proceed in a court of this State or another state or in a federal court or agency to enforce an order or decision in a court proceeding or in an administrative proceeding before the Commissioner.
Md. Code Ann., Ins. § 4-208 (2026)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers
§ 4–208LinkCopy Citation
(a)
This section does not apply to:
(1)
lawfully procured surplus lines insurance; or
(2)
insurance contracts that are independently procured through negotiations occurring entirely outside of the State and that are reported and on which the premium tax is paid under §§ 4-210 and 4-211 of this subtitle.
(b)
An unauthorized insurer may not enforce an insurance contract effective in the State and entered into by the unauthorized insurer.
Md. Code Ann., Ins. § 4-209 (2026)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers
§ 4–209LinkCopy Citation
(a)
This section does not apply to:
(1)
premiums on lawfully procured surplus lines insurance;
(2)
premiums on independently procured insurance on which a tax has been paid under § 4–211 of this subtitle; or
(3)
wet marine and transportation insurance.
(b)
(1)
If an unauthorized insurer effects, continues, or renews insurance on a subject resident, located, or to be performed in the State, the unauthorized insurer shall pay to the Commissioner, before March 1 of the next calendar year, a premium receipts tax of 3% of gross premiums charged for the insurance.
(2)
For policies effective before July 21, 2011:
(i)
if the policy covers property, risks, or exposures located or to be performed entirely in the State, the premium receipts tax shall be computed on the entire premium at the rate specified in paragraph (1) of this subsection; and
(ii)
if the policy covers property, risks, or exposures located or to be performed both in and outside the State, the premium receipts tax shall be computed at the rate specified in paragraph (1) of this subsection only on that portion of the premium that is properly allocable to the risks located in the State.
(3)
For policies effective on or after July 21, 2011, if the State is the insured’s home state, the premium receipts tax shall be computed on the entire premium at the rate specified in paragraph (1) of this subsection.
(4)
Insurance that an unauthorized insurer effects, continues, or renews on a subject resident, located, or to be performed in the State that is procured through negotiations or an application wholly or partly occurring or made in or from within or outside of the State, or for which premiums wholly or partly are remitted directly or indirectly from in or outside of the State, is deemed to be insurance procured, continued, or renewed in the State.
(c)
The premium receipts tax under this section is instead of all other State taxes.
(d)
If an unauthorized insurer defaults on the payment of the tax under this section, the insured shall pay the tax.
(e)
If the tax is not timely paid under subsection (b) of this section, the amount of the tax due shall be increased by a penalty of:
(1)
25% of the tax due; and
(2)
an amount computed at the rate of 1% per month or any part of a month after the date the payment was due to the date the payment is made.
Md. Code Ann., Ins. § 4-210 (2026)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers
§ 4–210LinkCopy Citation
(a)
In this section, “insured” includes an industrial insured who procures insurance of a risk through a full–time employee acting as a risk manager.
(b)
(1)
Each insured that procures or causes to be procured insurance with an unauthorized insurer, or an insured or self–insured that procures or continues excess loss, catastrophe, or other insurance with an unauthorized insurer, on a subject of insurance resident, located, or to be performed in the State other than surplus lines insurance, shall file with the Commissioner a report under this section.
(2)
Insurance with an unauthorized insurer on a subject of insurance resident, located, or to be performed in the State that is procured through negotiations or an application wholly or partly occurring or made in or from within or outside of the State, or for which the premiums wholly or partly are remitted directly or indirectly from in or outside of the State, is deemed to be insurance procured in the State.
(c)
For policies effective before July 21, 2011, a report under this section shall be filed within 60 days after the date that the insurance was procured.
(d)
For policies effective on or after July 21, 2011, on or before March 15 and September 15 of each year, or at another interval that the Commissioner directs, each insured shall:
(1)
file with the Commissioner a report, on a form the Commissioner prescribes, on business subject to tax during the preceding half calendar year or other interval that the Commissioner directs; and
(2)
pay to the Commissioner the total amount of tax stated in the report.
(e)
By regulation, the Commissioner shall determine the required content and filing deadlines of the reports.
Md. Code Ann., Ins. § 4-211 (2026)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers
§ 4–211LinkCopy Citation
(a)
This section does not apply to wet marine and transportation insurance.
(b)
(1)
If an insured procures, continues, or renews insurance from an unauthorized insurer that is subject to a report under § 4–210 of this subtitle, a premium receipts tax of 3% of the gross premiums charged for the insurance is levied on the obligation, chose in action, or right represented by the premium charged for the insurance.
(2)
If an insurance contract subject to the tax is canceled and rewritten, the additional premium, for purposes of the premium receipts tax, is the premium in excess of the unearned premium of the canceled insurance contract.
(c)
If the insured fails to withhold from the premium the amount of the tax levied under this section, the insured is liable for the amount of the tax imposed under subsection (b) of this section and shall pay the tax to the Commissioner.
(d)
If the tax imposed under subsection (b) of this section is not timely paid, the amount of the tax due shall be increased by a penalty of:
(1)
25% of the tax due; and
(2)
an amount computed at the rate of 1% per month or part of a month after the date the payment is due until the date the payment is made.
(e)
If the tax is not timely paid under this section, on request of the Commissioner, the Attorney General shall proceed in a court of this State or another state or in a federal court or agency to recover the tax.
Md. Code Ann., Ins. § 4-211.1 (2026)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers
§ 4–211.1LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Act” has the meaning stated in § 3–301 of this article.
(3)
“Home state” has the meaning stated in § 3–301 of this article.
(4)
“Nonadmitted insurance” has the meaning stated in § 3–301 of this article.
(b)
For policies effective on or after July 21, 2011, the placement of nonadmitted insurance is subject to the statutory and regulatory requirements solely of the insured’s home state.
(c)
The premiums charged for unauthorized insurance are subject to a premium receipts tax in the State on all gross premiums, less any returned premiums, charged for nonadmitted insurance as specified in §§ 4–209 and 4–211 of this subtitle.
(d)
For policies effective before July 21, 2011:
(1)
if the policy covers property, risks, or exposures located or to be performed entirely in the State, the premium receipts tax shall be computed on the entire premium at the rate specified in subsection (c) of this section; and
(2)
if the policy covers property, risks, or exposures located or to be performed both in and outside the State, the premium receipts tax shall be computed at the rate specified in subsection (c) of this section only on that portion of the premium that is properly allocable to the risks located in the State.
(e)
For policies effective on or after July 21, 2011, if the State is the insured’s home state, the premium receipts tax shall be computed on the entire premium at the rate specified in subsection (c) of this section.
(f)
For policies effective on or after July 21, 2011, only the home state of an insured may receive premium receipts tax payments and reports for nonadmitted insurance.
(g)
For policies effective on or after July 21, 2011, the regulation of nonadmitted insurance is subject to the statutory and regulatory requirements solely of the home state of the insured.
(h)
The Commissioner shall cooperate with other states to adopt and implement uniform requirements for nonadmitted insurance in compliance with the Act.
Md. Code Ann., Ins. § 4-212 (2026)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers
§ 4–212LinkCopy Citation
An unauthorized insurer or person that violates this subtitle is subject to a civil penalty of not less than $100 but not exceeding $125,000 for each violation.