Section 8-449 - License required; exceptions. - Maryland Statutes

§ 8-449. License required; exceptions.
 

(a)  In general.- 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)  Officers or employees excepted.- 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)  Part-time solicitation excepted.-  

(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. 
 

[An. Code 1957, art. 48A, §§ 344A, 344B; 1995, ch. 36; 1997, ch. 183, § 1; 2001, ch. 731, § 1.]