Maryland Issues Bulletin Summarizing Laws Enacted in 2024
On June 5, 2024, Maryland issued a bulletin summarizing all laws that have been enacted in 2024. See attachment for full details.
Notable items related to producer compliance:
-Amends § 4-212 of the Insurance Article to increase the maximum civil penalty from $50,000 to $125,000 for each violation in which an unlicensed person engages in the business of insurance in the State
-Increases the maximum penalty that can be imposed on insurance producers (Ins. § 10- 126) and public adjusters (Ins. § 10-410) from $500 to $5,000 per violation of the Insurance Article.
-Amends § 2-213 of the Insurance Article to permit a “business entity” (defined as a corporation, partnership, limited liability company, or sole proprietorship) that meets the definition of a “small employer” in § 31-101 in the Insurance Article (employers of not more than 50 employees) to designate an officer of the corporation, a partner in the partnership, a member of the limited liability company, or specified designated employees to represent them in administrative proceedings before the MIA or hearings at the Office of Administrative hearings on behalf of the MIA. This eliminates the need for small businesses from engaging counsel to represent them in administrative proceedings before the MIA.
-Amends Title 10, subtitle 1 of the Insurance Article repealing education and experience requirements for producer applicants, specifically those that require an individual to take a prelicensing course and work for at least one year prior to applying for an insurance producer license.
-This law does not make changes to the current requirements to obtain an insurance producer license, specifically that the applicant: (1) be trustworthy and of good character; (2) be at least 18 years old; (3) pass a written examination related to the type of insurance for which the license is being requested; and (4) pay the initial license fee.
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