§ 8–209
Statutes in effect as of October 1, 2026.
Md. Code Ann., Ins. § 8-209 (2026)
Title 8. Entities That Act as Insurers
Subtitle 2. Managing General Agents
§ 8–209LinkCopy Citation
(a)
A managing general agent may not:
(1)
commit the insurer to participate in insurance or reinsurance syndicates;
(2)
appoint or hire an insurance producer to solicit, procure, or negotiate insurance contracts for the insurer without ensuring that the insurance producer is licensed under Title 10, Subtitle 1 of this article;
(3)
take an action that would violate § 27-503 of this article if taken directly by the insurer;
(4)
without the insurer’s written approval, pay or commit the insurer to pay a claim, net of reinsurance, that exceeds 1% of the insurer’s policyholder surplus as of December 31 of the immediately preceding calendar year;
(5)
without the insurer’s prior written approval, collect any payment from a reinsurer;
(6)
commit the insurer to a claim settlement with a reinsurer;
(7)
employ an individual who also is employed by the insurer;
(8)
allow an agent or employee of the managing general agent to serve on the insurer’s board of directors; or
(9)
appoint a submanaging general agent unless:
(i)
approval of the appointment is obtained from the Commissioner and from the insurer for whom the managing general agent acts; and
(ii)
the submanaging general agent complies with any requirements imposed by the Commissioner under § 8-213 of this subtitle.
(b)
(1)
Except as provided in paragraph (2) of this subsection, a managing general agent may not bind reinsurance or retrocessions for an insurer.
(2)
A managing general agent may bind facultative reinsurance contracts under obligatory facultative agreements if the contract with the insurer contains reinsurance underwriting guidelines for reinsurance both assumed and ceded, including:
(i)
a list of reinsurers with which the automatic agreements are in effect;
(ii)
the coverages and amounts or percentages that may be reinsured; and
(iii)
commission schedules.