Maryland Laws Current

[Commissioner] Who appoints the Maryland Insurance Commissioner and for how long?

The Governor appoints the Commissioner with the advice and consent of the Senate for a 4-year term.

[Commissioner] What does the Maryland Insurance Commissioner oversee?

The insurance industry and enforcement of Maryland insurance laws and regulations.

[Commissioner] Name key powers of the Maryland Insurance Commissioner.

Enforce insurance law; examine insurers; regulate solvency and rates; hold hearings; administer oaths; issue cease-and-desist orders; and discipline licensees.

[Commissioner] How often must an authorized insurer generally be financially examined?

At least once every 5 years, according to the course notes.

[Commissioner] How much advance notice of a Commissioner hearing is generally required in the course notes?

At least 10 days before the hearing.

[Commissioner] What can the Commissioner issue after finding an unfair or deceptive act?

A cease-and-desist order and applicable penalties or discipline.

[Insurers] What is a certificate of authority?

Authorization from the Maryland Insurance Administration allowing an insurer to transact insurance in Maryland.

[Insurers] What may happen to the certificate of authority of an insolvent insurer?

The Commissioner may suspend it and take appropriate regulatory action.

[Licensing - Updated] Does Maryland currently require a Commissioner-approved prelicensing course before the producer exam?

No. Effective October 1, 2024, Maryland eliminated the approved-program-of-study requirement for applicants required to pass an exam.

[Licensing] What is the minimum age for a Maryland resident producer applicant?

18.

[Licensing] What must a resident applicant generally do to obtain a producer license?

Meet qualifications, pass the required exam for the requested line, submit the application and fees, and avoid disqualifying conduct.

[Licensing] What is a Maryland insurance producer?

A licensed person who sells, solicits, or negotiates insurance, generally for compensation.

[Licensing] What is a Maryland insurance adviser?

A licensed person who, for a fee, examines policies and provides advice or recommendations about policy benefits.

[Licensing] How often are individual Maryland producer licenses renewed?

Biennially, generally by the last day of the producer’s birth month.

[Licensing] How early may a producer generally apply for renewal according to the course notes?

Up to 90 days before license expiration.

[Licensing] What is generally required for a Maryland nonresident producer license?

A home-state license in good standing, reciprocal eligibility where applicable, an application, fees, and no disqualifying acts; Maryland’s exam is generally not required.

[Licensing] Why may Maryland issue a temporary producer license?

To allow service of a producer’s business after death, disability, active military service, or another circumstance deemed in the public interest.

[Licensing] What is the maximum temporary-license period stated in the course notes?

15 months.

[Licensing] Within what period may an expired Maryland producer license generally be reinstated?

Within 1 year after expiration, with the required application, fees, and continuing-education compliance.

[CE] How many continuing-education hours are generally required per Maryland producer renewal period?

24 hours every 2 years, including at least 3 ethics hours.

[CE] What additional CE applies to a health producer who sells long-term-care insurance?

At least 2 hours directly related to long-term-care insurance, according to Maryland guidance.

[CE] Who qualifies for the older 8-hour Maryland CE rule?

Only producers who had already held a continuous Maryland license for at least 25 consecutive years as of October 1, 2008; there are no new qualifiers.

[CE] Are all Maryland producers age 70 or older newly exempt from CE?

No. The age waiver applies only to those who were already age 70 or older as of April 30, 2013; all other producers must comply.

[Discipline] What application misconduct can lead to license discipline?

Providing incorrect, misleading, incomplete, or untrue information or obtaining a license through fraud or misrepresentation.

[Discipline] What insurance conduct can lead to license discipline?

Violating insurance laws or orders, misrepresentation, unfair trade practices, fraud, coercion, dishonesty, incompetence, or financial irresponsibility.

[Discipline] What criminal or examination conduct can lead to discipline?

Felony conviction, forgery, or cheating on a licensing examination.

[Discipline] What financial or legal noncompliance can lead to discipline?

Failure to comply with child-support orders or failure to pay state income tax, among other grounds.

[Reporting] How quickly must a Maryland licensee report a change of name, address, or email?

Within 30 days.

[Reporting] How quickly must a producer report certain administrative actions or criminal matters?

Generally within 30 days under the course notes and applicable Maryland requirements.

[Appointments] Can a licensed producer automatically act as an agent for any insurer?

No. Acting for an insurer generally requires an appointment by that insurer.

[Appointments] What is a producer appointment?

The agreement authorizing a producer, for compensation, to sell, solicit, or negotiate policies issued by an insurer.

[Appointments] What must an insurer do after appointing a producer under the course notes?

Record the appointment information and send documentation to the producer within 30 days.

[Appointments] What must an insurer do after terminating an appointment?

Notify the Commissioner within 30 days, then send the producer a copy within 15 days; the producer may submit written comments within 30 days.

[Records] How long must Maryland producers generally retain full and correct transaction records?

At least 5 years.

[Commissions] Who may receive a commission for selling, soliciting, or negotiating insurance?

A properly licensed person.

[Commissions] May a retired or formerly licensed producer receive renewal or deferred commissions?

Yes, when the payments arose from business written while properly licensed.

[Commissions] When may an unlicensed person receive a referral payment?

When the person does not sell, solicit, or negotiate insurance and the payment is not contingent on an insurance sale.

[Commissions] When may two producers share a commission?

When both are appropriately licensed for the line of insurance involved.

[Fiduciary Duty] What fiduciary duty applies to premiums collected by a Maryland producer?

The producer must account for and protect the funds and may not improperly commingle or convert them.

[Unauthorized Insurer] What risk does a producer face when transacting for an unauthorized insurer?

The producer may be personally liable for the unauthorized business.

[Insurer Types] A company chartered in Maryland is what type of insurer in Maryland?

Domestic.

[Insurer Types] A company chartered in Texas is what type of insurer in Maryland?

Foreign.

[Insurer Types] A company chartered in Canada is what type of insurer in Maryland?

Alien.

[Insurer Types] What is an authorized or admitted insurer?

An insurer holding a Maryland certificate of authority.

[Insurer Types] Why is a stock insurer called nonparticipating?

Its policyowners generally do not share in company surplus through policy dividends.

[Insurer Types] Why is a mutual insurer called participating?

Its policyowners may share divisible surplus through policy dividends.

[Trade Practices] What is misrepresentation?

A false or misleading statement about policy terms, benefits, value, cost, effective date, or existence used in insurance business.

[Trade Practices] What is false advertising?

Using untrue, deceptive, or misleading advertising about insurance products, services, or an insurer.

[Trade Practices] What is defamation?

Publishing a false or malicious statement or unsubstantiated criticism that harms an insurer or person in the insurance business.

[Trade Practices] What are boycott, coercion, and intimidation?

Actions intended to restrain, control, or monopolize insurance business through improper pressure.

[Trade Practices] What is unfair discrimination?

Treating risks differently without a valid actuarial or legal basis, such as charging different rates to people in the same actuarial class.

[Trade Practices] What is twisting?

Using a misleading comparison or misrepresentation to induce replacement of existing insurance to the insured’s detriment.

[Trade Practices] What is rebating?

Offering an unapproved premium rebate or special advantage as an inducement to buy insurance.

[Trade Practices] What is a prohibited inducement?

Promising employment, profits, stock, returns, or another improper benefit to induce an insurance purchase.

[Trade Practices] What is insurance fraud?

An intentional act in insurance business designed to deceive or misrepresent a material fact for an improper benefit.

[Claims Practices] When do repeated improper claims actions become an unfair claims-settlement practice?

When knowingly committed with enough frequency to indicate a general business practice.

[Claims Practices] Give examples of unfair claims-settlement practices.

Misrepresenting coverage, failing to investigate or respond promptly, unreasonable delay, refusing good-faith settlement, forcing unnecessary litigation, or failing to explain a denial.

[Federal Law] What is required for a person convicted of a felony involving dishonesty or breach of trust to participate in insurance?

Written regulatory consent, commonly called a 1033 waiver.

[Federal Law] What insurance conduct can violate federal fraud-and-false-statements law?

Intentional deception, embezzlement, premium misappropriation, false regulatory filings, or other covered dishonest conduct in interstate insurance business.

[Privacy] When must applicants receive notice of information practices?

At required stages such as application and when personal information is collected, according to applicable law and the course notes.

[Privacy] What must occur before an investigative consumer report is initiated?

The applicant must receive required notice, including that interviews may occur and that a copy may be requested.

[Privacy] What must an applicant receive after an adverse underwriting decision?

A written notice explaining required information, including the basis or source as applicable.

[Life Sales] What is the purpose of the life insurance buyer’s guide?

To provide general information that helps consumers compare policy types and costs.

[Life Sales] What is the purpose of a policy summary?

To give specific information about the policy applied for, including premiums, benefits, and coverage.

[Life Illustrations] What is a life-insurance illustration?

A presentation showing guaranteed and nonguaranteed policy elements over time.

[Life Illustrations] How must an illustration be treated?

It must be clearly identified, avoid misleading content, show required policy information, accompany the application as required, and be given to the applicant.

[Life Replacement] What transaction is generally a life-insurance replacement?

Buying new life insurance or an annuity that causes existing coverage to lapse, surrender, lose value, become reduced paid-up or extended term, or otherwise be materially reduced or financed.

[Life Replacement] What must the producer do with the notice regarding replacement?

Present it for both applicant and producer signatures, leave a copy with the applicant, and submit it with the application to the replacing insurer.

[Life Replacement] What existing-policy information must the producer obtain?

A list of policies or annuities being replaced, including policy numbers and insurer names.

[Life Replacement] What sales material must remain with the applicant during replacement?

The original or a copy of written or printed communications used in the presentation.

[Life Replacement] What must the replacing insurer send the existing insurer?

Written notice of the proposed replacement with required policy data within the applicable period.

[Life Replacement] What free-look period applies to a replacement life policy under the course notes?

30 days after delivery for a full refund.

[Life Provisions] What is the general Maryland life-policy free-look period?

At least 10 days after delivery; special products and replacements may have longer periods.

[Life Provisions] What is the Maryland life-policy grace period stated in the notes?

30 days.

[Life Provisions] How long does the course say a lapsed life policy may be reinstated?

Within 3 years of the premium due date, with evidence of insurability and overdue premiums plus interest.

[Life Provisions] What is the Maryland life incontestability period stated in the notes?

2 years, subject to applicable exceptions such as fraud under Maryland law.

[Life Provisions] When does interest on life-insurance proceeds begin under the course notes?

30 days after the insurer receives proof of death.

[Life Provisions] What maximum fixed policy-loan interest rate is stated in the Maryland notes?

8%.

[Group Life] What conversion period applies after Maryland group-life coverage ends?

31 days to convert without evidence of insurability, with the former member paying the premium.

[Group Life] Who receives the group master policy and who receives certificates?

The employer or group sponsor owns the master policy; insured employees or members receive certificates.

[Nonforfeiture] How long does the course give a Maryland policyowner to elect another nonforfeiture option after premium default?

60 days; otherwise the specified automatic option applies.

[Nonforfeiture] How long may an insurer defer a life-policy or annuity cash-surrender payment under the course notes?

Up to 6 months.

[Guaranty] What is the purpose of the Maryland Life and Health Insurance Guaranty Corporation?

To protect covered policyowners when a member insurer becomes insolvent, subject to statutory limits and exclusions.

[Guaranty] May a producer use guaranty-corporation protection as a sales inducement?

No.

[Health Provisions] What is the Maryland health time limit on certain defenses stated in the notes?

2 years, after which only fraudulent misstatements may generally be used as stated in the notes and policy law.

[Health Provisions] How does Maryland health-policy reinstatement treat an accident?

Covered immediately upon reinstatement under the standard provision.

[Health Provisions] How does Maryland health-policy reinstatement treat sickness?

Covered after a 10-day waiting period under the course notes.

[Health Provisions] When must notice of a health claim generally be given?

Within 20 days after the covered loss begins or as soon as reasonably possible.

[Health Provisions] How quickly must the insurer send claim forms?

Within 15 days after receiving notice of claim.

[Health Provisions] When is written proof of loss generally due?

Within 90 days, subject to reasonable-impossibility rules.

[Health Provisions] What is the general Maryland health-policy free-look period?

At least 10 days after delivery; Medicare supplement and LTC policies use longer periods.

[Health Provisions] When may legal action begin after proof of loss?

Not until at least 60 days after proof of loss has been submitted.

[Health Provisions] What outside limit for health-policy legal action is stated in the course notes?

6 years after written proof of loss was required or provided, as described in the notes.

[Health Provisions] What right does an insurer have during a claim investigation?

To conduct reasonable physical examinations and an autopsy when permitted by law, at its expense.

[Health Eligibility] To what age may dependent children generally remain on a parent’s health plan?

Until age 26, subject to plan and federal rules.

[Health Eligibility] When may a dependent child with a disability remain covered beyond the normal age limit?

When the child meets policy and legal requirements such as dependency and qualifying physical or intellectual disability.

[Health Eligibility] How long is automatic newborn coverage stated in the Maryland notes?

From birth for 31 days; any required premium must be paid within the applicable period to continue coverage.

[Health Eligibility] What minimum maternity stay is stated in the notes after vaginal delivery?

48 hours.

[Health Eligibility] What minimum maternity stay is stated in the notes after cesarean delivery?

96 hours.

[Health Eligibility] How are adopted children generally treated for dependent health coverage?

On the same basis as other dependents, subject to applicable plan and placement rules.