1004                             LAWS OF MARYLAND                        [CH. 553

59. Resident Agent Requirements; Countersignature.

(1)   No authorized insurer shall issue a policy covering a subject
of insurance resident, located, or to be performed in Maryland unless
the policy is written through a licensed agent resident in Maryland,
nor unless the policy or countersignature endorsement attached there-
to is countersigned by such agent; provided that when two or more
insurers issue a single policy of insurance the policy may be counter-
signed on behalf of all insurers appearing thereon by a licensed agent,
resident in this State, of any one such insurer.

(2)   As to commissions payable to a resident agent on any policy
or endorsement thereto issued to cover a subject of insurance resi-
dent, located or to be performed in Maryland, when by the laws of
another state the commissions or compensation thereon is required
to be paid to a resident agent upon policies or endorsements thereto
which are solicited or procured by non-resident agents or brokers,
then the law of the other state shall be applied in Maryland, and the
commission or compensation upon any similar transaction solicited
or procured by an agent or broker resident in such state shall be paid
to a licensed agent who is resident in Maryland; and if, pursuant to
the laws of another state, an agent resident in such state retains a
stipulated percentage or amount of the commission or compensation
on business placed in such state by agents or brokers of Maryland,
then the agent resident in this State shall retain the same percentage
or amount of commission as would be required had an agent or brok-
er, resident in Maryland, placed similar insurance in the other state.

(3)   Only a licensed agent resident in Maryland, whose compensa-
tion is by commission computed as a percentage of the premium re-
ceived on each such policy written shall have power to countersign
policies or endorsements subject to the requirements of this section;
except that in an emergency, in lieu of countersignature by such
agent, such policy or endorsement may be countersigned by the in-
surer's executive officer, general agent, state agent, special agent, or
other supervising agent or officer, provided the usual commission on
such policy is paid by the insurer to a licensed resident agent.

(4)   This section shall not apply to:
(i) Reinsurance.

(ii) Life insurance, health insurance or annuity contracts.

(iii) Insurance of the rolling stock, vessels or aircraft of any com-
mon carrier in interstate or foreign commerce, or of any vehicle
principally garaged and used in another state, or covering any liabil-
ity or other risks incident to the ownership, maintenance or operation
thereof.

(iv) Insurance of property in course of transportation interstate
or in foreign trade, or any liability or risk incident thereto.

(v) Insurance of wet marine and transportation risks.

(vi) Bid bonds issued in connection with any public or private
contracts.

(vii) Policies or endorsements issued through agents compensated
only by salary or issued by insurers not using agents in the general
solicitation of business; or to policies or endorsements issued by mu-
tual or any other insurers not customarily using agents compensated