reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part IV - Other Powers and Duties › Section 8-437 - Creation and Operation of Institutions

(a)    A society may create, maintain, and operate charitable, benevolent, or educational institutions for the benefit of:
(1)    society members;
(2)    families and dependents of society members; and
(3)    children insured by the society.
(b)    (1)    For the purposes of an institution authorized by subsection (a) of this section, a society may own, hold, or lease personal or real property inside or outside the State.
(2)    The property shall be reported in each annual statement of the society, but may not be allowed as an admitted asset of the society.
(c)    (1)    Subject to paragraph (2) of this subsection, a society may charge a reasonable fee for maintenance, treatment, and proper attendance in an institution authorized by subsection (a) of this section.
(2)    A society may not operate an institution authorized under subsection (a) of this section for profit.
(d)    A society may not own or operate a funeral home or undertaking establishment.
(e)    A society shall maintain a separate accounting for any income and disbursements under this section and report them in its annual statement.
(f)    The purposes of a society as specified in its laws, and as provided in this section and § 8-411(c)(2) of this subtitle, may be carried out:
(1)    directly by the society; or
(2)    indirectly:
(i)    with respect to activities regulated by the Insurance Commissioner, through a subsidiary or affiliate operating under a certificate of authority, certificate of qualification, or other license issued by the Commissioner; and
(ii)    for all other activities, through subsidiary corporations and affiliated organizations.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part IV - Other Powers and Duties › Section 8-438 - Consolidation and Merger -- Procedure

(a)    A society may consolidate or merge with another society as provided in this section.
(b)    The society shall file with the Commissioner:
(1)    a certified copy of the written contract that contains the terms and conditions of the consolidation or merger;
(2)    a statement verified under oath by the president and secretary or equivalent officers of each society party to the contract that shows the financial condition of the society on a date set by the Commissioner, but not before December 31 preceding the date of the contract;
(3)    a certificate verified under oath by the officers described in item (2) of this subsection that states that the consolidation or merger was approved by a two-thirds vote of the supreme legislative or governing body of each society; and
(4)    evidence that, at least 60 days before the approval of the supreme legislative or governing body of each society, the text of the contract was mailed to each member of each society or was published in full in the official publication of that society.
(c)    The affidavit of an officer of the society or an individual authorized by the society to mail a notice or document, stating that the text of the contract was properly addressed and mailed, is prima facie evidence that the text was provided to the addressee.
(d)    The Commissioner shall approve the contract and issue a certificate of approval if the Commissioner finds that:
(1)    the society has complied with the provisions of this section;
(2)    the financial statements are correct; and
(3)    the consolidation or merger is equitable to the members of each society party to the contract.
(e)    (1)    Unless a society party to the contract is incorporated under the laws of another state, the contract is effective on approval.
(2)    If a society party to the contract is incorporated under the laws of another state, the consolidation or merger is not effective:
(i)    until it is approved under the laws of the other state and a certificate of the approval is filed with the Commissioner; or
(ii)    if the laws of the other state do not provide for approval, until it is approved by the insurance supervisory official of the other state and a certificate of the approval is filed with the Commissioner.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part IV - Other Powers and Duties › Section 8-439 - Consolidation and Merger -- Effect

(a)    When a consolidation or merger becomes effective, each right, franchise, and interest of the consolidated or merged society in an asset vests in the successor society, without the need for any other instrument.
(b)    A conveyance of real property may be evidenced by a proper deed.
(c)    The title to or any interest in real property vested under the laws of the State in a consolidated or merged society does not revert and is not in any way impaired because of the consolidation or merger, but vests absolutely in the successor society.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part IV - Other Powers and Duties › Section 8-440 - Conversion to Mutual Life Insurer

(a)    A domestic society may convert to and be licensed as a mutual life insurer by complying with the applicable requirements of Title 3, Subtitle 1 of this article if the plan of conversion is approved by the Commissioner.
(b)    (1)    The plan of conversion shall be in writing and shall set forth the terms and conditions of the conversion.
(2)    The board of directors shall submit the plan of conversion to the supreme legislative or governing body of the society at a regular or special meeting, by giving a complete copy of the plan with the notice of the meeting.
(3)    Notice shall be given as provided in the applicable laws of the society for a regular or special meeting.
(4)    The affirmative vote of two-thirds of the members of the body is necessary for approval of the plan.
(c)    (1)    Conversion to a mutual life insurer may not take effect unless approved by the Commissioner.
(2)    The Commissioner may approve the conversion if the Commissioner finds that the proposed change conforms to the requirements of law and is not prejudicial to the certificate holders of the society.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part IV - Other Powers and Duties › Section 8-441 - Reinsurance

(a)    Subject to subsection (b) of this section, a domestic society may cede wholly or partly any individual risk by reinsurance agreement to an insurer that:
(1)    is not a fraternal benefit society;
(2)    has the power to make reinsurance; and
(3)    is authorized to do insurance business in the State or is approved by the Commissioner.
(b)    A domestic society may not reinsure substantially all of its insurance in force without the written permission of the Commissioner.
(c)    (1)    Except as provided in paragraph (2) of this subsection, a ceding domestic society may take credit for the reserves on risks ceded under this section to the extent reinsured.
(2)    A ceding domestic society may not be allowed credit, as an admitted asset or as a deduction from liability, for reinsurance made, ceded, renewed, or that otherwise became effective after December 31, 1963, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contracts reinsured without diminution because of the insolvency of the ceding society.
(d)    Notwithstanding the limitations in this section, a society may reinsure the risks of another society in a consolidation or merger approved by the Commissioner under § 8-438 of this subtitle.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part IV - Other Powers and Duties › Section 8-442 - Assets; Special Funds; Payments for Expenses; Separate Accounts

(a)    (1)    All assets of a society shall be held, invested, and disbursed for the use and benefit of the society.
(2)    A society member or beneficiary of a member does not have and may not acquire individual rights in the assets of the society and is not entitled to any apportionment or the surrender of any part of the assets except as provided in the insurance contract.
(b)    A society may create, maintain, invest, disburse, and apply special funds as necessary to carry out any purpose allowed by the laws of the society.
(c)    (1)    This subsection applies only to a society with admitted assets that are less than the sum of its accrued liabilities and reserves under all of its certificates when valued according to standards required for certificates issued after December 31, 1963.
(2)    A society described in paragraph (1) of this subsection shall state distinctly, in each law of the society regarding payments by members, the purpose of the payments and the proportion of the payments that may be used for expenses.
(3)    A society described in paragraph (1) of this subsection may not use any money collected for mortuary or disability purposes, or its net earnings, for expenses.
(d)    (1)    A society, pursuant to resolution of its supreme governing body, may establish and operate one or more separate accounts and issue contracts on a variable basis, subject to the provisions of law regulating life insurers establishing such accounts and issuing such contracts.
(2)    To the extent the society considers it necessary in order to comply with any applicable federal or State laws, or any rules issued under applicable federal or State laws, the society:
(i)    may adopt special procedures for the conduct of the business and affairs of a separate account;
(ii)    for persons having beneficial interests in an account, may provide special voting and other rights, including special rights and procedures relating to investment policy, investment advisory services, selection of certified public accountants, and selection of a committee to manage the business and affairs of the account; and
(iii)    may issue contracts on a variable basis to which §§ 8-432(c) and 8-446 of this subtitle shall not apply.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part IV - Other Powers and Duties › Section 8-443 - Investments

For the purpose of compliance with standards set out in this article regarding required reserves and required surplus, a society shall invest its funds only in investments that are authorized by, and subject to the limitations of, the laws of the State for the investment of assets of life insurers under Title 5 of this article.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part IV - Other Powers and Duties › Section 8-444 - Annual Statement

(a)    Each society transacting insurance business in the State shall:
(1)    file with the Commissioner an annual statement as provided in § 4-116 of this article;
(2)    pay to the Commissioner a fee of $25 for filing the annual statement; and
(3)    prepare a synopsis of the annual statement that explains the condition of the society as disclosed by the annual statement.
(b)    On or before June 1 of each year the synopsis required by subsection (a)(3) of this section shall be:
(1)    printed and mailed to each benefit member of the society; or
(2)    published in the society’s official publication.
(c)    (1)    A society that fails to file the annual statement required under subsection (a) of this section shall pay a penalty of $100 each day until the annual statement is filed.
(2)    In addition to the penalty provided in paragraph (1) of this subsection, the Commissioner, after notice to the society, shall suspend the society’s authority to do business in the State until the annual statement is filed.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part IV - Other Powers and Duties › Section 8-445 - Valuation of Certificates

(a)    Standards of valuation for certificates issued before January 1, 1998, shall be those provided by the laws applicable on December 31, 1997.
(b)    (1)    The minimum standards of valuation for certificates issued on or after January 1, 1998, shall be based on the following tables:
(i)    for certificates of life insurance:
1.    the Commissioners 1941 Standard Ordinary Mortality Table;
2.    the Commissioners 1941 Standard Industrial Mortality Table;
3.    the Commissioners 1958 Standard Ordinary Mortality Table;
4.    the Commissioners 1980 Standard Ordinary Mortality Table; or
5.    any more recent table authorized for use under § 5-304(b) of this article; and
(ii)    for annuity and pure endowment certificates, total and permanent disability benefits, accidental death benefits, and noncancelable accident and health benefits, the tables that are authorized for use by life insurers in the State.
(2)    Valuation of all certificates issued on or after January 1, 1998, shall be under valuation methods and standards, including interest assumptions, in accordance with the laws of the State applicable to life insurers issuing policies containing like benefits.
(c)    The Commissioner may:
(1)    accept other standards for valuation if the Commissioner finds that the reserves produced by those other standards will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard prescribed in this section; and
(2)    vary the standards of mortality applicable to all benefit contracts on substandard lives or other extra hazardous lives by any society authorized to do business in the State.
(d)    (1)    With the consent of the commissioner of insurance of the state of domicile of the society, and subject to any conditions the commissioner may impose, a society may establish and maintain reserves on its certificates that exceed the reserves required under this section.
(2)    The contractual rights of any benefit member may not be affected by a society establishing and maintaining reserves under paragraph (1) of this subsection.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part IV - Other Powers and Duties › Section 8-446 - Impairment of Reserves

(a)    Each society shall provide in its laws that:
(1)    if the reserves of the society as to all or any class of certificates become impaired, the board of directors or equivalent body of the society may require that the owner of each certificate pay the amount of the owner’s equitable proportion of the deficiency as determined by the board of directors or equivalent body and approved by the commissioner of the domiciliary state; and
(2)    if the owner does not pay the owner’s share of the deficiency, that share:
(i)    shall stand as an indebtedness against the certificate and is subject to interest not exceeding the rate specified for certificate loans under the certificate; or
(ii)    instead of or in combination with item (i) of this paragraph, the owner of the certificate may accept a proportionate reduction in benefits under the certificate.
(b)    The society may specify the manner of the election and which alternative is to be presumed if no election is made.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part V - Fraternal Benefit Agents › Section 8-449 - License Required; Exceptions

(a)    Except as otherwise provided in this section, a person must obtain a license issued under Title 10, Subtitle 1 of this article before the person acts as an insurance producer for a fraternal benefit society.
(b)    Subsection (a) of this section does not apply to a regular salaried officer or employee of a licensed society who:
(1)    devotes substantially all of the officer’s or employee’s services to activities other than soliciting insurance contracts; and
(2)    does not receive, for soliciting insurance contracts, a commission or other compensation that is directly dependent on the amount of business obtained.
(c)    (1)    Subsection (a) of this section does not apply to a fraternal benefit insurance producer or representative of a society that devotes, or intends to devote, less than 50% of the person’s time to selling, soliciting and negotiating insurance contracts for the society.
(2)    For the purposes of paragraph (1) of this subsection, a person is presumed to be devoting, or intending to devote, 50% or more of the person’s time to selling, soliciting or negotiating insurance contracts for a society if, in the preceding calendar year, the person has sold, solicited and negotiated:
(i)    life insurance contracts that, in the aggregate, exceed $200,000 of coverage for all lives insured for the preceding calendar year;
(ii)    a permanent life insurance contract offering more than $10,000 of coverage on an individual life;
(iii)    a term life insurance contract offering more than $50,000 of coverage on an individual life;
(iv)    any insurance contracts other than life that the society may write that insure the lives of more than 25 individuals; or
(v)    any variable life insurance or variable annuity contract.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part VI - Enforcement and Penalties › Section 8-461 - Examination of Domestic Societies

(a)    The Commissioner or a person appointed by the Commissioner shall examine the affairs of each domestic society at least once every 3 years.
(b)    In conducting an examination under this section:
(1)    the Commissioner or person appointed by the Commissioner shall have free access to all books, documents, and records that relate to the business of the society; and
(2)    the Commissioner may subpoena and examine under oath any person, including the officers, agents, and employees of the society, in relation to the affairs, transactions, and condition of the society.
(c)    (1)    A summary of the report of the Commissioner about the examination and any recommendations or statements of the Commissioner that accompany the report:
(i)    shall be read at the first meeting of the board of directors or equivalent body of the society after the receipt of the report; and
(ii)    if the Commissioner directs, shall be read at the first meeting of the supreme legislative or governing body of the society after the receipt of the report.
(2)    A copy of the report, recommendations, and statements of the Commissioner shall be provided by the society to each member of the society’s board of directors or other governing body.
(d)    The expense of each examination or of each valuation, including the compensation and expenses of examiners, shall be paid by the society examined or the society whose certificates are valued, on statements provided by the Commissioner.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part VI - Enforcement and Penalties › Section 8-462 - Examination of Foreign and Alien Societies

(a)    The Commissioner or a person appointed by the Commissioner may examine any foreign or alien society that transacts or applies for admission to transact business in the State.
(b)    In conducting an examination under this section, the Commissioner or person appointed by the Commissioner shall have free access to all books, documents, and records that relate to the business of the society.
(c)    Instead of conducting an examination, the Commissioner may accept the examination of the insurance department of the state or jurisdiction where the society is organized.
(d)    The compensation and expenses of the examiners making an examination or valuation shall be paid by the society examined or the society whose certificate obligations are valued, on statements provided by the Commissioner.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part VI - Enforcement and Penalties › Section 8-463 - Publication of Information About Examinations or Investigations

(a)    Subject to subsection (b) of this section, during or after an examination or investigation of a domestic, foreign, or alien society, the Commissioner may not make public or allow to become public a financial statement, report, or finding that affects the status, standing, or rights of the society.
(b)    The Commissioner may make public or allow to become public a financial statement, report, or finding described in subsection (a) of this section after:
(1)    a copy of the financial statement, report, or finding has been served on the society at its principal office; and
(2)    the society has been given a reasonable opportunity to answer the financial statement, report, or finding.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part VI - Enforcement and Penalties › Section 8-464 - Injunctions

(a)    The Commissioner shall take action under subsection (b) of this section if, on investigation, the Commissioner finds that a domestic society:
(1)    has exceeded its powers;
(2)    has failed to comply with this subtitle;
(3)    is not fulfilling its contracts in good faith;
(4)    has a membership of less than 400 after an existence of 1 year or more;
(5)    is conducting its insurance business fraudulently; or
(6)    is conducting its insurance business in a manner hazardous to its members, creditors, the public, or the business.
(b)    If the Commissioner makes a finding under subsection (a) of this section, the Commissioner shall:
(1)    notify the society of the finding;
(2)    state in writing the reasons for dissatisfaction; and
(3)    require the society to show cause on or before a specified date why:
(i)    the society should not be enjoined from conducting any insurance business until the violation has been corrected; or
(ii)    an action seeking a mandatory injunction should not be commenced against the society.
(c)    (1)    If, on or before the date specified in the notice, the society does not present good and sufficient reason why it should not be enjoined from conducting insurance business or why an action seeking a mandatory injunction should not be commenced, the Commissioner may present the facts relating to the violation to the Attorney General.
(2)    On request of the Commissioner, the Attorney General may commence:
(i)    an action to enjoin the society from conducting insurance business; or
(ii)    an action seeking a mandatory injunction.
(3)    The court shall schedule a hearing and notify the officers of the society of the hearing.
(4)    If, after a full hearing, the court finds that a violation has occurred under subsection (a) of this section, the court shall pass an order:
(i)    enjoining the society from conducting insurance business;
(ii)    liquidating the society; or
(iii)    appointing the Commissioner as receiver of the society.
(d)    A society enjoined from conducting insurance business under this section may not conduct insurance business until:
(1)    the Commissioner finds that the violation has been corrected;
(2)    the costs of the action have been paid by the society, if the court finds that the society was in default;
(3)    the court has dissolved the injunction; and
(4)    the Commissioner has reinstated the society’s certificate of authority.
(e)    If a court orders a society to be liquidated:
(1)    the society may not conduct any further insurance business; and
(2)    the receiver of the society immediately shall:
(i)    take possession of the books, papers, money, and other assets of the society; and
(ii)    close the affairs of the society and distribute its funds to those entitled to the funds under the direction of the court.
(f)    This section also applies to a society that voluntarily determines to discontinue business.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part VI - Enforcement and Penalties › Section 8-467 - Discrimination and Rebates Prohibited

(a)    A society doing insurance business in the State may not make or allow unfair discrimination between insured members of the same class and equal life expectancy in:
(1)    the premiums charged for certificates of insurance;
(2)    the dividends or other benefits payable on certificates of insurance; or
(3)    any other terms and conditions of the contracts the society makes.
(b)    (1)    This subsection applies to:
(i)    a society;
(ii)    a person acting for the society;
(iii)    an insurance producer that acts on behalf of a fraternal benefit society; and
(iv)    a person acting for an insurance producer that acts on behalf of a fraternal benefit society.
(2)    A person may not offer, promise, allow, give, set off, or pay, directly or indirectly, any valuable consideration or inducement to or for insurance on any risk authorized to be taken by a society that is not specified in the certificate.
(c)    A society member may not receive or accept, directly or indirectly:
(1)    a rebate of all or part of a premium payable on a certificate;
(2)    a rebate of a fraternal benefit agent’s commission on a premium payable on a certificate;
(3)    any favor, advantage, or share in the dividends or other benefits to accrue on the insurance contract; or
(4)    any other valuable consideration or inducement not specified in the insurance contract.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 4 - Fraternal Benefit Societies › Part VI - Enforcement and Penalties › Section 8-468 - Misrepresentation About Society or Insurance Contract Prohibited

(a)    A person may not cause or allow to be made, issued, or circulated in any form:
(1)    a misrepresentation or false or misleading statement about the terms, benefits, or advantages of a fraternal insurance contract issued or to be issued in the State;
(2)    a misrepresentation or false or misleading statement about the financial condition of a society;
(3)    a false or misleading estimate or statement about the dividends or shares of surplus paid or to be paid by a society on an insurance contract or policy; or
(4)    an incomplete comparison of an insurance contract of one society with an insurance contract of another society or insurer for the purpose of inducing the lapse, forfeiture, or surrender of an insurance contract.
(b)    A comparison of insurance contracts is incomplete if:
(1)    the comparison does not compare in detail:
(i)    the gross rates, and the gross rates less any dividend or other reduction allowed at the date of the comparison; and
(ii)    any increase in cash values, and all the benefits provided by each contract for the possible duration of the contract as determined by the life expectancy of the insured; or
(2)    the comparison omits from consideration:
(i)    any benefit or value provided in the contract;
(ii)    any differences as to amount or period of rates; or
(iii)    any differences in limitations, conditions, or provisions that directly or indirectly affect the benefits under the contract.
(c)    In making a determination of the incompleteness or misleading character of a comparison or statement, it is presumed that the insured did not know the contents of the contract involved.
(d)    (1)    A person that violates subsection (a) of this section or knowingly receives compensation or a commission as a result of a violation of subsection (a) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 90 days or both.
(2)    (i)    In addition to the penalties provided by paragraph (1) of this subsection, a person that violates subsection (a) of this section is liable for a civil penalty of three times the sum received by the violator as compensation or commission from the violation.
(ii)    A person or society aggrieved by the violation may file a civil action for the person’s or society’s own use and benefit to recover a civil penalty under this paragraph.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-501 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “License” means a license issued by the Commissioner to act as a reinsurance intermediary.
(c)    “Qualified financial institution” means an institution that:
(1)    is organized or, in the case of a United States office of a foreign banking organization, licensed under the laws of the United States or a state;
(2)    is regulated, supervised, and examined by the United States or any state by authorities with regulatory authority over banks and trust companies; and
(3)    has been determined by the Commissioner or the securities valuation office of the National Association of Insurance Commissioners to meet the standards of financial condition and standing considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the Commissioner.
(d)    (1)    “Reinsurance broker” means a person that solicits, negotiates, or places reinsurance cessions or retrocessions for a ceding insurer without the authority to bind reinsurance for the ceding insurer.
(2)    “Reinsurance broker” does not include an officer or employee of the ceding insurer.
(e)    “Reinsurance intermediary” means a reinsurance broker or a reinsurance manager.
(f)    (1)    “Reinsurance manager” means a person that:
(i)    acts as an insurance producer for a reinsurer; and
(ii)    1.    has authority to bind the reinsurer; or
2.    manages all or part of the assumed reinsurance business of the reinsurer, including the management of a separate division, department, or underwriting office.
(2)    “Reinsurance manager” does not include:
(i)    an employee of the reinsurer;
(ii)    a United States manager of the United States branch of an alien reinsurer;
(iii)    an underwriting manager that, by contract:
1.    manages all or part of the reinsurance operations of the reinsurer;
2.    is under common control with the reinsurer; and
3.    is not compensated based on the volume of premiums written; or
(iv)    the manager of a group, association, pool, or organization of insurers that:
1.    engages in joint underwriting or joint reinsurance; and
2.    is subject to examination by the insurance regulatory authority of the state where the manager’s principal business office is located.
(g)    “Reinsurer” means a person that engages in the business of reinsurance as:
(1)    an authorized insurer; or
(2)    an accepted reinsurer approved by the Commissioner.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-503 - License Required; Qualifications of Reinsurance Intermediaries

(a)    This section does not apply to a lawyer admitted to the bar of the State while acting within the scope of the profession of the lawyer.
(b)    (1)    Except as otherwise provided in paragraph (2) of this subsection, before a person acts as a reinsurance manager or reinsurance broker in the State, the person:
(i)    in the case of a person that maintains an office in the State:
1.    must obtain a license under this subtitle; or
2.    must qualify as an insurance producer under Title 10, Subtitle 1 of this article; or
(ii)    in the case of a person that maintains an office in another state:
1.    must obtain a license under this subtitle or under a law of another state that is substantially similar to this subtitle; or
2.    must qualify as an insurance producer under Title 10, Subtitle 1 of this article or under a law of another state that is substantially similar to Title 10, Subtitle 1 of this article.
(2)    Before a person acts as a reinsurance manager for a reinsurer domiciled in the State, the person must:
(i)    obtain a license under this subtitle; or
(ii)    qualify as an insurance producer under Title 10, Subtitle 1 of this article.
(3)    This subsection applies to a person that maintains an office in the State either directly or as a member or employee of a firm or association or as an officer, director, or employee of a corporation that maintains an office in the State.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-504 - Required Bonds or Other Security

(a)    The Commissioner may require a reinsurance manager to:
(1)    file a bond from an insurer in an amount acceptable to the Commissioner for the protection of each reinsurer that the reinsurance manager represents; and
(2)    maintain an errors and omissions policy in an amount acceptable to the Commissioner.
(b)    (1)    The bond required under subsection (a)(1) of this section must be written by an insurer that is authorized to write surety insurance in the State and is acceptable to the Commissioner.
(2)    Subject to the approval of the Commissioner, a reinsurance manager may provide security other than a bond, including an irrevocable letter of credit, to satisfy the requirements of subsection (a)(1) of this section.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-505 - Service of Process

(a)    (1)    On the form that the Commissioner provides, each nonresident applicant for a license must appoint the Commissioner as attorney for service of process issued against the applicant in the State.
(2)    The appointment:
(i)    is irrevocable;
(ii)    binds the applicant and any successor in interest; and
(iii)    remains in effect as long as there is in force in the State a contract made by the applicant or an obligation arising from a contract made by the applicant.
(b)    (1)    Each nonresident applicant for a license shall provide the Commissioner with the name and address of a resident of the State on whom notice and orders of the Commissioner and process issued against the applicant may be served.
(2)    (i)    A nonresident licensee promptly shall notify the Commissioner of a change in its designated agent for service.
(ii)    A change is not effective until acknowledged by the Commissioner.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-506 - Applications for License

(a)    An applicant for a license shall:
(1)    file with the Commissioner an application on the form that the Commissioner provides; and
(2)    pay to the Commissioner an application fee of $25.
(b)    The application form shall require:
(1)    for a firm or association, the name of each member of the firm or association and of each employee of the firm or association who will act as a reinsurance intermediary under the license; and
(2)    for a corporation, the name of each officer of the corporation and of each employee and director of the corporation who will act as a reinsurance intermediary under the license.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-507 - Issuance of License

(a)    The Commissioner shall issue a license to each applicant that:
(1)    meets the requirements of this subtitle; and
(2)    pays the applicable fee for a license for an insurance producer under § 2-112 of this article.
(b)    (1)    In this subsection, “controlling person” means a person that directly or indirectly has the power to direct, or cause to be directed, the management, control, or activities of a reinsurance intermediary.
(2)    The Commissioner may refuse to issue a license if the Commissioner finds that the applicant, an individual named on the application, a member, principal, officer, or director of the applicant, or a controlling person of the applicant:
(i)    is not trustworthy to act as a reinsurance intermediary;
(ii)    has given cause for revocation or suspension of a license; or
(iii)    has failed to comply with a requirement for issuance of a license.
(3)    On written request, the Commissioner shall provide a summary of the basis for the refusal to issue a license.
(4)    The summary of the basis for refusal is privileged and is not a public document under Title 10, Subtitle 6 of the State Government Article.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-508 - Scope of License

(a)    A license issued to an individual authorizes the individual to act as a reinsurance intermediary.
(b)    A license issued to a firm or association authorizes each member of the firm or association, and each employee of the firm or association who is listed on the license, to act as a reinsurance intermediary.
(c)    A license issued to a corporation authorizes each officer of the corporation, and each employee or director of the corporation who is listed on the license, to act as a reinsurance intermediary.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-509 - Term and Renewal of License

(a)    A license expires on the first July 1 after its effective date and in an odd-numbered year, unless it is renewed for a 2-year term as provided in this section.
(b)    At least 1 month before a license expires, the Commissioner shall mail to the licensee, at the last known address of the licensee, or send by electronic means in accordance with § 2–116 of this article:
(1)    a renewal application form; and
(2)    a notice that states:
(i)    the date by which the Commissioner must receive the renewal application for the renewal to be issued and mailed before the license expires; and
(ii)    the amount of the renewal fee.
(c)    Before a license expires, the licensee may renew it for an additional 2-year term, if the licensee:
(1)    otherwise is entitled to be licensed;
(2)    files with the Commissioner a renewal application on the form that the Commissioner provides; and
(3)    pays to the Commissioner the applicable renewal fee for an insurance producer under § 2-112 of this article.
(d)    The Commissioner shall renew the license of each licensee who meets the requirements of this section.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-510 - Addition or Deletion of Names on License

To add a name to or delete a name from a license, the licensee shall:
(1)    submit to the Commissioner the change in the form that the Commissioner requires; and
(2)    pay to the Commissioner a fee of $10.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-511 - Denials, Refusals to Renew, Suspensions, and Revocations; Penalties; Judicial Review; Civil Damages

(a)    Subject to the hearing provisions of §§ 2-210 through 2-214 of this article, the Commissioner may deny, refuse to renew, suspend, or revoke a reinsurance intermediary’s license, or a reinsurance intermediary’s insurance producer license, if the reinsurance intermediary has violated this subtitle or § 10-126 of this article.
(b)    Instead of or in addition to the penalties provided in subsection (a) of this section, the Commissioner:
(1)    may impose a penalty not exceeding $5,000 for each violation of this subtitle;
(2)    may bring a civil action for the benefit of an insurer or reinsurer and its policyholders and creditors to recover compensatory damages or may seek other appropriate relief; and
(3)    may impose any other penalty authorized by this article.
(c)    An order of the Commissioner issued under this section is subject to judicial review in accordance with § 2-215 of this article.
(d)    A receiver appointed under Title 9, Subtitle 2 of this article may bring a civil action to recover damages or for other appropriate sanctions for the benefit of an insurer if the receiver determines that:
(1)    a reinsurance intermediary or other person has failed to comply materially with this subtitle; and
(2)    the failure has caused an insurer under an order of rehabilitation or liquidation to suffer a loss or damage.
(e)    This section is not intended to limit the rights of policyholders or claimants of an insurer or reinsurer.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-513 - Authorization to Act as a Reinsurance Broker

(a)    A person may not act as a reinsurance broker for an authorized insurer without a written authorization agreement between the reinsurance broker and the authorized insurer that states the responsibilities of the parties.
(b)    The authorization agreement required by this section shall provide that:
(1)    on written notice, the authorized insurer may terminate at any time the authority of the reinsurance broker to act for it; and
(2)    the reinsurance broker shall:
(i)    render accounts to the authorized insurer detailing all material transactions, including information necessary to support the commissions, charges, and other fees received by or owed to the reinsurance broker;
(ii)    remit all funds due to the authorized insurer within 30 days after receipt;
(iii)    hold in a fiduciary capacity in a qualified financial institution all funds collected for the account of the authorized insurer;
(iv)    keep all books, records, and accounts in accordance with § 8-514 of this subtitle;
(v)    comply with all written standards established by the authorized insurer for the cession or retrocession of all risks; and
(vi)    disclose to the authorized insurer any relationship of the reinsurance broker with a reinsurer to which business is ceded or retroceded.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-514 - Records of Reinsurance Broker

(a)    A reinsurance broker shall keep a record of each transaction that relates to a contract of reinsurance transacted by the reinsurance broker for at least 10 years after the contract expires.
(b)    For each contract of reinsurance, the record required by this section shall include:
(1)    the type of contract, limits, underwriting restrictions, classes or risks, and territory;
(2)    the period of coverage, including effective and expiration dates, cancellation provisions, and required notice of cancellation;
(3)    the requirements for reporting and settling balances;
(4)    the rate used to compute the reinsurance premium;
(5)    the names and addresses of assuming reinsurers;
(6)    the rates of all reinsurance commissions, including commissions on any retrocessions handled by the reinsurance broker;
(7)    proof of placement;
(8)    details of retrocessions handled by the reinsurance broker, including the identity of retrocessionaires and the percentage of each contract assumed or ceded;
(9)    financial records, including premium and loss accounts; and
(10)    any related correspondence and memoranda.
(c)    In addition to the records required by this section, a reinsurance broker shall keep written evidence that the assuming reinsurer:
(1)    has agreed to accept the risk, if the reinsurance broker, while acting for a ceding authorized insurer, procured a reinsurance contract directly from an assuming reinsurer; and
(2)    has delegated binding authority to its representative, if the reinsurance broker, while acting for a ceding authorized insurer, procures a reinsurance contract from a representative, other than an employee, of an assuming reinsurer.
(d)    (1)    An authorized insurer shall have reasonable access to and the right to copy and audit all accounts and records maintained by the reinsurance broker that relate to business transactions with the authorized insurer.
(2)    The reinsurance broker shall maintain accounts and records in a form usable by the authorized insurer.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-516 - Records of Reinsurance Manager

(a)    A reinsurance manager shall keep a record of each transaction that relates to a contract of reinsurance transacted by the reinsurance manager for at least 10 years after the contract expires.
(b)    For each contract of reinsurance, the record required by this section shall include:
(1)    the type of contract, limits, underwriting restrictions, classes or risks, and territory;
(2)    the period of coverage, including effective and expiration dates, cancellation provisions, required notice of cancellation, and disposition of outstanding reserves on covered risks;
(3)    the requirements for reporting and settling balances;
(4)    the rate used to compute the reinsurance premium;
(5)    the names and addresses of assuming reinsurers;
(6)    the rates of all reinsurance commissions, including commissions on any retrocessions handled by the reinsurance manager;
(7)    proof of placement;
(8)    details of retrocessions handled by the reinsurance manager, including the identity of retrocessionaires and the percentage of each contract assumed or ceded;
(9)    financial records, including premium and loss accounts; and
(10)    any related correspondence and memoranda.
(c)    In addition to the records required by this section, a reinsurance manager shall keep written evidence that the assuming reinsurer:
(1)    has agreed to accept the risk, if the reinsurance manager, while acting for a ceding authorized insurer, procured a reinsurance contract directly from an assuming reinsurer; and
(2)    has delegated binding authority to its representative, if the reinsurance manager, while acting for a ceding authorized insurer, procures a reinsurance contract from a representative, other than an employee, of an assuming reinsurer.
2023 Maryland Statutes › Insurance › Title 8 - Entities That Act as Insurers › Subtitle 5 - Reinsurance Intermediaries › Section 8-518 - Restrictions on Activities of Reinsurance Manager

(a)    A reinsurance manager:
(1)    except as provided in subsection (b) of this section, may not cede retrocessions for a reinsurer;
(2)    may not commit a reinsurer to participate in reinsurance syndicates;
(3)    may not appoint or hire an insurance producer to solicit, procure, or negotiate reinsurance contracts for a reinsurer without ensuring that the insurance producer is qualified under Title 10, Subtitle 1 of this article;
(4)    may not take an action that would constitute a violation of § 27-503 of this article if taken directly by a reinsurer;
(5)    without the reinsurer’s prior written approval, may not pay or commit a reinsurer to pay a claim, net of reinsurance, that exceeds the lesser of 1% of the reinsurer’s policyholder surplus as of the preceding calendar year and an amount specified by the reinsurer;
(6)    subject to subsection (b) of this section and without the reinsurer’s prior written approval:
(i)    may not collect a payment from a retrocessionaire; or
(ii)    may not commit a reinsurer to a claim settlement with a retrocessionaire;
(7)    may not appoint a subreinsurance manager; or
(8)    may not employ an individual who is also employed by a reinsurer that transacts business with the reinsurance manager, unless the reinsurance manager is under common control with the reinsurer and is subject to Title 7 of this article.
(b)    A reinsurance manager may cede facultative reinsurance contracts under obligatory facultative agreements if the contract between the reinsurance manager and reinsurer contains reinsurance underwriting guidelines for the retrocessions, including:
(1)    a list of reinsurers with which any automatic agreements are in effect;
(2)    the coverages and amounts or percentages that may be reinsured; and
(3)    commission schedules.