Section 10-130 - Commission only to licensed insurance producer. - Maryland Statutes

§ 10-130. Commission only to licensed insurance producer.
 

(a)  In general.- Except as otherwise provided in §§ 10-102 and 10-119 of this subtitle, a commission, fee, reward, rebate, or other consideration for selling, soliciting, or negotiating insurance may not be paid, directly or indirectly, to a person other than a licensed insurance producer. 

(b)  Exception.- Except as otherwise provided in this article, for life insurance or health insurance this section does not prohibit payment to or receipt by a person who formerly held a license and, if the person acted on behalf of an insurer, an appointment of: 

(1) commissions on renewal premiums on existing policies; or 

(2) other deferred commissions. 

(c)  Payment or assignment of commissions, service fees, other consideration.- Unless the payment would violate § 27-209 or § 27-212 of this article, an insurer or insurance producer may pay or assign commissions, service fees, or other valuable consideration to an insurance agency or to persons who do not sell, solicit, or negotiate insurance in the State. 
 

[An. Code 1957, art. 48A, § 167; 1995, ch. 36; 2001, ch. 731, § 1.]