Chapter 12. Insurer Transactions With Unappointed Persons—General Business Practices

The methodology in Regulation .02 of this chapter shall be used to determine whether an insurer has engaged in accepting business from a person who does not have an appointment from the insurer with such frequency as to constitute a general business practice within the meaning of Insurance Article, §4-113(b)(11), Annotated Code of Maryland.

It shall be considered prima facie evidence of a general business practice of violating Insurance Article, §4-113(b)(11), Annotated Code of Maryland, if in any 12-month period it is found that the number of transactions violating Insurance Article, §4-113(b)(11), by foreign insurers for policies issued to Maryland residents, or by domestic insurers for all policies written, equals or exceeds the following:

An insurer may overcome the presumption that a general business practice of violating Insurance Article, §4-113(b)(11), Annotated Code of Maryland, exists by presenting evidence to the Commissioner relating to the insurer's intent, the nature of the violations, and any other relevant factors.