CONSTITUTIONAL REVISION STUDY DOCUMENTS

Function: Commission has power to make rules and regulations and to issue
licenses concerning contractors and salesmen in the home improve-
ment industry; investigates complaints and may take administrative
action when violations are found.

State Insurance Department

07.09.01.01

Established By: Md. Code Ann., art. 48A, § 14.

Head: Insurance commissioner. Md. Code Ann., art. 48A, § 15.

Members: Commissioner appointed by the governor.

Term: 4 years.

Removal: No statutory authority.¹

Employees: Commissioner appoints,a deputy. Md. Code Ann., art. 48A, § 16.
Commissioner appoints a chief examiner and assistants.
Commissioner appoints an auditor.
Commissioner appoints special deputies.
Commissioner appoints clerks and other employees.
60 merit employees and 3 unclassified employees.

Function: Makes rules and regulations; authorizes and licenses insurance
companies, agents, solicitors, and brokers.

Approves all life, accident, and sickness insurance offered for sale
in the State; licenses rating bureaus; and approves rates for most
classes of property and other insurance.

1 In Townsend v. Kurtz, 83 Md. 331, 34 A. 1123 (1896), plaintiff was appointed insurance
commissioner for a four-year term by the Board of Public Works under Governor Brown. Four
months later the Board of Public Works under Governor Lowndes removed plaintiff from
office and appointed defendant to a four-year term. No charges were filed against plaintiff
for misconduct, incompetency or other cause, and he was removed without prior notice or
hearing. The statute provided that the insurance commissioner hold office during the term for
which he is appointed or until his successor is appointed and qualified, unless sooner removed
by the governor, treasurer and comptroller. (Today's statute has no such provision. See
Md. Code Ann., art. 48A, § 15. The court held:

"Most, if not all, officers provided for by Constitution, may be removed under the
express authority given by that instrument, but the fact that they may be removed, does
not convert their offices from those for definite terms into those held at the will of the
persons making the appointment, p.342.

"When the statute has given the appointing power authority to remove the appointee,
although originally appointed for a definite term of years, it can be exercised. . . . but
[legislators] have in this instance been silent on the subject, we think the safer rule to be
to hold that they have thus manifested an intention not to limit the governor, treasurer
and comptroller to any particular cause or causes for removal of the insurance commis-
sioner, and thereby practically left it to their discretion, which of course must be honestly
and fairly exercised." pp. 351-52.

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