MARVIN MANDEL, Governor

2241

166.

As used in this subtitle:

(a) An "agent" is a person appointed by an insurer
(1) to solicit applications for insurance or annuities or
to negotiate insurance on its behalf; and (2) if
authorized to do so by the insurer, to effectuate and
countersign insurance contracts. The term "agent" shall
not include:

(1)    Individuals employed and used by agents
or insurers for the performance of clerical, stenographic
and similar office duties;

(2)   Any regular salaried officer or employee
of an insurer rendering assistance to or on behalf of a
licensed agent, provided that such salaried officer or
employee receives no commission or other compensation
directly dependent upon the amount of business obtained;

(3)    Any person who secures and forwards
information for the purpose of group insurance coverage
or for enrolling individuals under group insurance
coverages or issuing certificates thereunder where no
commission is paid for such services.

(B) AM "INDEPENDENT AGENT" MEANS AN AGENT AS
DEFINED IN SUBSECTION (A) OF THIS SECTION AND:

(1)    WHO IS NOT OWNED OR CONTROLLED BY ANY
INSURER OR GROUP OF INSURERS;

(2)   WHOSE AGENCY AGREEMENT DOES NOT PROHIBIT
THE REPRESENTATION OF MORE THAN ONE INSURER OR GROUP OF
INSURERS; AND

(3)   WHOSE AGENCY AGREEMENT PROVIDES THAT AT
THE TERMINATION OF THE AGENCY THE AGENT'S RECORDS SHALL
REMAIN THE PROPERTY OF THE AGENT, AND THAT THE AGENT
RETAINS THE USE AND CONTROL OF ALL EXPIRATIONS INCURRED
DURING THE AGENCY.

A PERSON OR CORPORATION OTHER THAN AN INDEPENDENT
INSURANCE AGENT MAY NOT BE REPRESENTED TO THE PUBLIC AS
AN INDEPENDENT AGENT.

[(b)] (C) A "broker" is a person who for
compensation in any manner solicits, procures or
negotiates insurance contracts or the renewal or
continuance thereof, on behalf of insureds or prospective
insureds other than himself and not on behalf of an
insurer or agent.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1976.