# COMAR Title 31 — Maryland Insurance Administration

## Subtitle 04 — Insurers

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

**Authority:** Insurance Article, §§2-109 and 4-113(b)(11) and (e), Annotated Code of Maryland

**Administrative History:** Effective date: September 1, 1967

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

**Administrative History:** Chapter, Binders—Motor Vehicle Liability Insurance, repealed effective

**Administrative History:** December 26, 1988 (15:26 Md. R. 2982)

**Administrative History:** Regulations .01—.03, Insurer Transactions with Unappointed Persons—General Business Practices, adopted effective March 16, 1992 (19:5 Md. R. 576)

**Administrative History:** Chapter recodified from COMAR 09.30.47 to COMAR 31.04.12 effective September 7, 1998 (25:18 Md. R. 1439)

#### Regulation .01 Methodology.

*COMAR 31.04.12.01*

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.

#### Regulation .02 Frequency of Practice.

*COMAR 31.04.12.02*

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:

A. Five transactions with a single person who does not have an appointment from the insurer; or

B. One or more transactions with five or more people who do not have appointments from the insurer.

#### Regulation .03 Overcoming the Presumption.

*COMAR 31.04.12.03*

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.