§ 10-128. Signature or countersignature of policies.
(a) Scope of section.- This section does not apply to:
(1) reinsurance;
(2) life insurance, health insurance, or annuity contracts;
(3) insurance of:
(i) rolling stock, vessels, or aircraft of a common carrier used in interstate or foreign commerce;
(ii) a vehicle principally garaged and used outside the State; or
(iii) liability or other risks, incident to the ownership, maintenance, or operation of a subject of insurance under item (i) or (ii) of this item;
(4) insurance of property while transported in interstate or in foreign trade, or any liability or risk incident to the transportation;
(5) insurance of wet marine and transportation risks;
(6) bid bonds issued in connection with public or private contracts;
(7) policies or endorsements issued through:
(i) insurance producers compensated only by salary;
(ii) insurers not using insurance producers in the general solicitation of business;
(iii) mutual insurers or other insurers not customarily using insurance producers compensated by commission if no commission is payable to an insurance producer on the policy or endorsement; or
(iv) insurers or groups of insurers under common management or control that are represented exclusively by insurance producers who represent only the insurers or groups of insurers;
(8) reciprocal insurers; or
(9) insurance written through:
(i) the Maryland Automobile Insurance Fund; or
(ii) the Maryland Property Insurance Availability Program.
(b) Effect of section.- This section does not alter the requirements of § 10-119 of this subtitle.
(c) Signature or countersignature by resident insurance producer not required; exception.-
(1) Notwithstanding any other provision of law of this State or of policy forms, and subject to paragraph (2) of this subsection, an insurance producer that is a resident of this State may not be required to sign or countersign a policy covering a subject of insurance resident, located, or to be performed in this State.
(2) A policy covering a subject of insurance resident, located, or to be performed in this State shall be signed or countersigned by an insurance producer that is a resident of this State if:
(i) the policy is written by an insurance producer that is a resident of another state and is qualified as a nonresident insurance producer in this State; and
(ii) the law of the other state requires a signature or countersignature by an insurance producer that is a resident of that state on a policy written by an insurance producer that is not a resident in that state.
(3) A policy is not invalid because it does not have the required signature or countersignature.
(d) Persons authorized to sign or countersign policy.-
(1) A person may not sign or countersign a policy or endorsement subject to this section unless the person:
(i) is a licensed insurance producer;
(ii) is a resident of this State;
(iii) is compensated by commissions on policies subject to this section; and
(iv) is not an employee or officer of the insurer issuing the policy.
(2) This section does not prevent an insurance producer from:
(i) delegating the duty of signing or countersigning to employees of the insurance producer that are not also employees of lending institutions; or
(ii) directing the payment of commissions on policies subject to this section to a corporation or partnership insurance agency or otherwise.
(e) Prerequisite to countersignature.- An insurance producer may not countersign a policy or endorsement unless the policy or endorsement states, as applicable:
(1) the rates or premiums;
(2) a description of the property insured; and
(3) the name and address of the insured.
(f) Commissions.- If the law of another state requires an insurance producer that is a resident of that state to keep part of the commission paid on a policy written, countersigned, or delivered by the insurance producer in that state on request of a nonresident insurance producer of that state, an insurance producer that is a resident of this State and that signs or countersigns a policy written by an insurance producer that is a resident of the other state and qualified as a nonresident insurance producer in this State covering a subject of insurance resident, located, or to be performed in this State shall keep an equal pro rata part of any commission on the policy.
§ 10-128. Signature or countersignature of policies.
(a) Scope of section.- This section does not apply to:
(1) reinsurance;
(2) life insurance, health insurance, or annuity contracts;
(3) insurance of:
(i) rolling stock, vessels, or aircraft of a common carrier used in interstate or foreign commerce;
(ii) a vehicle principally garaged and used outside the State; or
(iii) liability or other risks, incident to the ownership, maintenance, or operation of a subject of insurance under item (i) or (ii) of this item;
(4) insurance of property while transported in interstate or in foreign trade, or any liability or risk incident to the transportation;
(5) insurance of wet marine and transportation risks;
(6) bid bonds issued in connection with public or private contracts;
(7) policies or endorsements issued through:
(i) insurance producers compensated only by salary;
(ii) insurers not using insurance producers in the general solicitation of business;
(iii) mutual insurers or other insurers not customarily using insurance producers compensated by commission if no commission is payable to an insurance producer on the policy or endorsement; or
(iv) insurers or groups of insurers under common management or control that are represented exclusively by insurance producers who represent only the insurers or groups of insurers;
(8) reciprocal insurers; or
(9) insurance written through:
(i) the Maryland Automobile Insurance Fund; or
(ii) the Maryland Property Insurance Availability Program.
(b) Effect of section.- This section does not alter the requirements of § 10-119 of this subtitle.
(c) Signature or countersignature by resident insurance producer not required; exception.-
(1) Notwithstanding any other provision of law of this State or of policy forms, and subject to paragraph (2) of this subsection, an insurance producer that is a resident of this State may not be required to sign or countersign a policy covering a subject of insurance resident, located, or to be performed in this State.
(2) A policy covering a subject of insurance resident, located, or to be performed in this State shall be signed or countersigned by an insurance producer that is a resident of this State if:
(i) the policy is written by an insurance producer that is a resident of another state and is qualified as a nonresident insurance producer in this State; and
(ii) the law of the other state requires a signature or countersignature by an insurance producer that is a resident of that state on a policy written by an insurance producer that is not a resident in that state.
(3) A policy is not invalid because it does not have the required signature or countersignature.
(d) Persons authorized to sign or countersign policy.-
(1) A person may not sign or countersign a policy or endorsement subject to this section unless the person:
(i) is a licensed insurance producer;
(ii) is a resident of this State;
(iii) is compensated by commissions on policies subject to this section; and
(iv) is not an employee or officer of the insurer issuing the policy.
(2) This section does not prevent an insurance producer from:
(i) delegating the duty of signing or countersigning to employees of the insurance producer that are not also employees of lending institutions; or
(ii) directing the payment of commissions on policies subject to this section to a corporation or partnership insurance agency or otherwise.
(e) Prerequisite to countersignature.- An insurance producer may not countersign a policy or endorsement unless the policy or endorsement states, as applicable:
(1) the rates or premiums;
(2) a description of the property insured; and
(3) the name and address of the insured.
(f) Commissions.- If the law of another state requires an insurance producer that is a resident of that state to keep part of the commission paid on a policy written, countersigned, or delivered by the insurance producer in that state on request of a nonresident insurance producer of that state, an insurance producer that is a resident of this State and that signs or countersigns a policy written by an insurance producer that is a resident of the other state and qualified as a nonresident insurance producer in this State covering a subject of insurance resident, located, or to be performed in this State shall keep an equal pro rata part of any commission on the policy.
§ 10-128. Signature or countersignature of policies.
(a) Scope of section.- This section does not apply to:
(1) reinsurance;
(2) life insurance, health insurance, or annuity contracts;
(3) insurance of:
(i) rolling stock, vessels, or aircraft of a common carrier used in interstate or foreign commerce;
(ii) a vehicle principally garaged and used outside the State; or
(iii) liability or other risks, incident to the ownership, maintenance, or operation of a subject of insurance under item (i) or (ii) of this item;
(4) insurance of property while transported in interstate or in foreign trade, or any liability or risk incident to the transportation;
(5) insurance of wet marine and transportation risks;
(6) bid bonds issued in connection with public or private contracts;
(7) policies or endorsements issued through:
(i) insurance producers compensated only by salary;
(ii) insurers not using insurance producers in the general solicitation of business;
(iii) mutual insurers or other insurers not customarily using insurance producers compensated by commission if no commission is payable to an insurance producer on the policy or endorsement; or
(iv) insurers or groups of insurers under common management or control that are represented exclusively by insurance producers who represent only the insurers or groups of insurers;
(8) reciprocal insurers; or
(9) insurance written through:
(i) the Maryland Automobile Insurance Fund; or
(ii) the Maryland Property Insurance Availability Program.
(b) Effect of section.- This section does not alter the requirements of § 10-119 of this subtitle.
(c) Signature or countersignature by resident insurance producer not required; exception.-
(1) Notwithstanding any other provision of law of this State or of policy forms, and subject to paragraph (2) of this subsection, an insurance producer that is a resident of this State may not be required to sign or countersign a policy covering a subject of insurance resident, located, or to be performed in this State.
(2) A policy covering a subject of insurance resident, located, or to be performed in this State shall be signed or countersigned by an insurance producer that is a resident of this State if:
(i) the policy is written by an insurance producer that is a resident of another state and is qualified as a nonresident insurance producer in this State; and
(ii) the law of the other state requires a signature or countersignature by an insurance producer that is a resident of that state on a policy written by an insurance producer that is not a resident in that state.
(3) A policy is not invalid because it does not have the required signature or countersignature.
(d) Persons authorized to sign or countersign policy.-
(1) A person may not sign or countersign a policy or endorsement subject to this section unless the person:
(i) is a licensed insurance producer;
(ii) is a resident of this State;
(iii) is compensated by commissions on policies subject to this section; and
(iv) is not an employee or officer of the insurer issuing the policy.
(2) This section does not prevent an insurance producer from:
(i) delegating the duty of signing or countersigning to employees of the insurance producer that are not also employees of lending institutions; or
(ii) directing the payment of commissions on policies subject to this section to a corporation or partnership insurance agency or otherwise.
(e) Prerequisite to countersignature.- An insurance producer may not countersign a policy or endorsement unless the policy or endorsement states, as applicable:
(1) the rates or premiums;
(2) a description of the property insured; and
(3) the name and address of the insured.
(f) Commissions.- If the law of another state requires an insurance producer that is a resident of that state to keep part of the commission paid on a policy written, countersigned, or delivered by the insurance producer in that state on request of a nonresident insurance producer of that state, an insurance producer that is a resident of this State and that signs or countersigns a policy written by an insurance producer that is a resident of the other state and qualified as a nonresident insurance producer in this State covering a subject of insurance resident, located, or to be performed in this State shall keep an equal pro rata part of any commission on the policy.
