2744

LAWS OF MARYLAND

Ch. 734

Article 48A - Insurance Code

59.

[(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 thereto is
countersigned by such agent; provided that when two or more
insurers issue a single policy of insurance the policy may
be countersigned on behalf of all insurers appearing thereon
by a licensed agent, resident in this State, of any one such
insurer.]

[(la) A nonresident agent or broker licensed pursuant
to § 171 may countersign policies and bonds procured through
his agency covering subjects of insurance located or to be
performed in this State, if and to the extent (1) the state
in which the nonresident agent or broker resides or has his
principal office has a reciprocal provision in favor of
agents and/or brokers who reside in Maryland, and (2) the
Maryland agent or broker is entitled to the same commissions
as a resident agent with respect to subjects of insurance
located or to be performed in the reciprocal state.]

[(2) As to commissions payable to a resident agent on
any policy or endorsement thereto issued to cover a subject
of insurance resident, 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 nonresident 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 broker, resident in Maryland, placed similar
insurance in the other state.]

(1) NOTWITHSTANDING ANY OTHER PROVISIONS OF THE LAWS
OF MARYLAND OR POLICY FORMS TO THE CONTRARY, THERE MAY NOT
BE ANY REQUIREMENT THAT AN AGENT RESIDENT IN MARYLAND SIGN
OR COUNTERSIGN A POLICY OF INSURANCE COVERING A SUBJECT OF
INSURANCE RESIDENT, LOCATED, OR TO BE PERFORMED IN THIS
STATE. HOWEVER, IF THE LAWS OR REGULATIONS OF ANOTHER STATE
REQUIRE A SIGNATURE OR COUNTERSIGNATURE BY AN AGENT RESIDENT
IN THAT STATE ON A POLICY OF INSURANCE WRITTEN BY A
NONRESIDENT AGENT OR NONRESIDENT BROKER OF THAT STATE, THEN
ANY POLICY OF INSURANCE WRITTEN BY AN AGENT RESIDENT OF THAT