# COMAR Title 31 — Maryland Insurance Administration

## Subtitle 03 — Insurance Producers and Other Insurance Professionals

### Chapter 01 — Temporary Licensees

**Authority:** Insurance Article, §§2-109, 10-115, 10-120, and 10-126, Annotated Code of Maryland

**Administrative History:** Effective date: April 1, 1964

**Administrative History:** Amended effective May 1, 1968

**Administrative History:** Regulation .02A amended effective September 5, 1988 (15:18 Md. R. 2146)

**Administrative History:** Regulation .03 repealed effective September 5, 1988 (15:18 Md. R. 2146)

**Administrative History:** Regulation .04 recodified to Regulation .03 effective September 5, 1988 (15:18 Md. R. 2146)

**Administrative History:** Regulations .05 and .06 adopted effective May 5, 1986 (13:9 Md. R. 1027)

**Administrative History:** Regulation .05 recodified to Regulation .04 and amended effective September 5, 1988 (15:18 Md. R. 2146)

**Administrative History:** Regulation .06 recodified to Regulation .05 and amended effective September 5, 1988 (15:18 Md. R. 2146)

**Administrative History:** Chapter recodified from COMAR 09.30.18 to COMAR 31.03.01 effective September 7, 1998 (25:18 Md. R. 1439)

**Administrative History:** Regulation .01 amended effective April 10, 2006 (33:7 Md. R. 675)

**Administrative History:** Regulation .02 repealed effective April 10, 2006 (33:7 Md. R. 675)

**Administrative History:** Regulation .04 amended effective April 10, 2006 (33:7 Md. R. 675)

**Administrative History:** Regulation .05 amended effective April 10, 2006 (33:7 Md. R. 675)

#### Regulation .01 Individual Business Continuation Cases.

*COMAR 31.03.01.01*

A. If a qualified and licensed resident insurance producer should die, become mentally or physically disabled, or enter upon active service in the armed forces of the United States of America, the Insurance Commissioner will give consideration to the issuance of temporary licenses to an individual who comes under one of the categories listed in Insurance Article, §10-120(a), Annotated Code of Maryland. Except in unusual circumstances, consideration will not be given to any nonresident applicant.

B. The grant of authority given to an approved applicant will be restricted to the same kinds of insurance only for which the insurance producer whom the applicant is replacing was qualified and licensed.

C. Any renewal application for a temporary license shall be stamped received in the Insurance Administration in advance of the expiration of the existing temporary license.

D. If the insurance business of the original insurance producer is sold, transferred, or otherwise disposed of, any temporary license to continue that business shall be terminated and the licensee shall return the license or licenses to the Insurance Administration for cancellation. Further licenses will not be issued in that case.

#### Regulation .02 Repealed.

*COMAR 31.03.01.02*

#### Regulation .03 Revocation of Temporary Licenses.

*COMAR 31.03.01.03*

A temporary license which has been issued under the provisions of the Insurance Article and this chapter may be revoked in accordance with provisions of the Insurance Article, §10-126, Annotated Code of Maryland.

#### Regulation .04 Issuance of Temporary License.

*COMAR 31.03.01.04*

A temporary license for a life or health insurance producer may not be issued to any applicant affiliated or to be affiliated with an appointing insurer if to do so would increase the appointing insurer's proportion of resident insurance producers temporarily licensed to resident insurance producers permanently licensed to 10 percent or more, based upon statistics for the previous calendar year.

#### Regulation .05 Issuance of Appointments.

*COMAR 31.03.01.05*

A. An insurer may not issue an appointment to act as a temporary life or health insurance producer if to do so would increase the proportion of resident insurance producers temporarily licensed by the insurer to resident insurance producers permanently licensed to 10 percent or more, based upon statistics for the previous calendar year.

B. The Insurance Commissioner may, at the discretion of the Insurance Commissioner, allow an insurer to exceed the 10 percent limitation stated in §A of this regulation if the Insurance Commissioner reasonably believes that the limitation would impose an undue burden on the conduct of the insurer's business in Maryland.

C. In determining whether to allow an insurer to exceed the 10 percent limitation stated in §A of this regulation, the Insurance Commissioner shall consider the total number of resident insurance producers appointed by the insurer and the length of time the insurer has been doing business in Maryland.