Chapter 7 - Insurance Regulation

What is the minimum age to apply for a producer license in this state? (Maryland)

18 years

What constitutes rebating?

Any inducement offered to the insured in the sale of insurance products that is not specified in the policy.

What are the applicable penalties for noncompliance with the state's Insurance Code?

Any licensee or insurer who willfully violates the Insurance Code is subject not only to administrative penalties (license suspension or revocation) imposed by the Commissioner, but also to criminal sanctions.

How often does the Commissioner examine authorized insurers?

Every 5 years

Who is responsible for making sure insurance policies are quality, understandable products and that rates are reasonable?

Maryland Insurance Administration

How long is a producer's license valid before a renewal is required?

Producers licenses are issued for 2 years. Individual insurance producer licenses expire on the last day of the insurance producer's birth month.

What are the continuing education requirements for producers in this state?

Resident licenses are required to complete 24 continuing education credit hours every 2 years in order to renew their producer licenses. Title producers will only be required to complete 16 hours every 2 years. All producers must complete 3 hours of their required credits in Ethics. Producers must maintain a record of CE course completion for at least 4 years.

What are the broad powers and duties of the Commissioner of Insurance?

issue a certificate of authority examine books, records, and documents of an insurer, agent, or broker approve insurance policy forms sold within a state

What acts are considered unfair claims settlement practices?

3 examples include: 1. Misrepresentation 2. Refusal to pay a claim for an arbitrary or capricious reason based on all available information 3. Attempt to settle a claim based on an application that is altered without notice to, or the knowledge or consent of, the insured

For how long, and under what circumstances can a temporary license be issued?

Upon the death of an agent to a surviving family member, legal representative, or employee may receive a temporary license or If an agent cannot perform their duties because of injury, disability or mental incapacity, to a surviving family member, legal representative, or employee may receive a temporary license.