Maryland Insurance Laws, Rules and Regulations
Regulator and licensing
The Maryland Insurance Administration (MIA), headed by the Insurance Commissioner, licenses producers, agencies, surplus lines brokers, and adjusters; reviews policy forms and rates; conducts market conduct examinations; and investigates fraud and unfair trade practices. Producers must complete prelicensing education, pass the exam, and renew on a two-year cycle with 24 hours of continuing education, including 3 hours of ethics. Insurers appoint producers, must terminate appointments when the relationship ends, and pay commissions only to properly licensed persons. A producer handling premium owes a fiduciary duty and may not commingle premium funds with personal or business funds.
Prohibited practices
Maryland prohibits misrepresentation, false advertising, twisting (inducing replacement through misrepresentation), rebating (offering inducements not in the policy), coercion, unfair claim settlement practices, and illegal premium charges. Violations can bring fines, license suspension or revocation, and restitution.
Consumer protection rules
Maryland requires notice before cancellation or nonrenewal - short notice (generally 10 days) for nonpayment of premium and longer notice (generally 45 days) for other cancellations and nonrenewals of personal lines. Mandatory auto coverages include liability of 30/60/15, at least $2,500 in PIP, and uninsured motorist coverage unless validly waived in writing. Residual markets include Maryland Auto Insurance (formerly MAIF) for auto and the Maryland Property Insurance Availability Program for property; the state guaranty corporation responds to insurer insolvencies.
Traps
Do not assume a lapsed license can be renewed freely - reinstatement may require fees, CE, and even reexamination. Paying a commission to an unlicensed referral source is unlawful, and rebating is never a legitimate sales tactic.
Rule of thumb
Notice periods: 10 days to cancel for nonpayment, 45 days for everything else in personal lines.