2023 Maryland Statutes › Insurance › Title 10 - Regulation of Insurance Professions › Subtitle 1 - Insurance Producers › Section 10-103 - License Required

(a)    In this section, the term “insurer” does not include an insurer’s officers, directors, employees, subsidiaries, or affiliates.
(b)    The licensing requirements of this section do not apply to:
(1)    an insurer;
(2)    an officer, director, or employee of an insurer or of an insurance producer who does not receive any commission on policies written or sold to insure risks residing, located or to be performed in the State if:
(i)    the activities of the officer, director, or employee are executive, administrative, managerial, clerical, or a combination of these, and are only indirectly related to the sale, solicitation, or negotiation of insurance;
(ii)    the function of the officer, director, or employee relates to underwriting, loss control, inspection, or the processing, adjusting, investigating, or settling of a claim on a contract of insurance; or
(iii)    the officer, director, or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers where the individual’s activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation, or negotiation of insurance;
(3)    an individual who performs administrative services related to mass marketed property and casualty insurance, provided that no commission is paid to the individual for the services;
(4)    an employer, association, the officers, directors, and employees of an employer or association, or the trustees of an employee trust plan if:
(i)    the employer, association, officers, directors, and employees, or trustees are engaged in the administration or operation of a program of employee benefits for the employer’s or association’s own employees or the employees of its subsidiaries or affiliates;
(ii)    the program involves the use of insurance issued by an insurer; and
(iii)    the employer, association, officers, directors, and employees, or trustees are not in any manner compensated, directly or indirectly, by the insurer issuing the contracts;
(5)    an employee of an insurer or organization employed by an insurer who is:
(i)    engaged in the inspection, rating, or classification of risks or in the supervision of the training of insurance producers; and
(ii)    not individually engaged in the sale, solicitation, or negotiation of insurance;
(6)    a person whose activities in the State are limited to advertising without the intent to solicit insurance in the State through communications in printed publications or other forms of electronic mass media if:
(i)    the distribution of the printed publications or other forms of electronic mass media is not limited to residents of the State; and
(ii)    the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in the State;
(7)    a person who is not a resident of the State who sells, solicits, or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under the contract if:
(i)    the person is otherwise licensed as an insurance producer to sell, solicit, or negotiate that insurance in the state where the insured maintains its principal place of business; and
(ii)    the contract insures risks located in that state; or
(8)    a salaried, full-time employee who counsels or advises the employee’s employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer, provided that the employee does not sell or solicit insurance or receive a commission.
(c)    Except as otherwise provided in this article, before a person acts as an insurance producer in the State, the person must obtain:
(1)    a license in the kind or subdivision of insurance for which the person intends to act as an insurance producer; and
(2)    if acting for an insurer, an appointment from the insurer.
(d)    (1)    Except as otherwise provided in this subsection, an insurance producer may not sell, solicit, or negotiate any insurance on behalf of an insurer for which the insurance producer does not have an appointment.
(2)    Without an appointment, an insurance producer may:
(i)    submit to an insurer an informal inquiry for any kind of life insurance, health insurance, or annuity for which the insurance producer has a license if the insurer has a certificate of authority for the kind of insurance about which the inquiry is made; and
(ii)    solicit an application for any kind of life insurance, health insurance, or annuity for which the insurance producer has a license if the insurer to which the application is submitted has a certificate of authority for the kind of insurance requested in the application.
(e)    Before a business entity may accept in its own name compensation for acting as an insurance producer in the State, the business entity must obtain:
(1)    a license in the kind or subdivision of insurance for which the business entity intends to act as an insurance producer; and
(2)    an appointment for the kind or subdivision of insurance for which it intends to act as an insurance producer on behalf of an insurer.