HARRY HUGHES, Governor

2745

STATE LICENSED AS A NONRESIDENT AGENT IN MARYLAND COVERING A
SUBJECT OF INSURANCE RESIDENT, LOCATED OR TO BE PERFORMED IN
MARYLAND SHALL BE SIGNED OR COUNTERSIGNED IN WRITING BY AN
AGENT RESIDENT IN MARYLAND. A POLICY OF INSURANCE MAY NOT
BE DEEMED INVALID BECAUSE OF THE ABSENCE OF THE REQUIRED
SIGNATURE OR COUNTERSIGNATURE. IF THE LAWS OR REGULATIONS
OF ANOTHER STATE REQUIRE AN AGENT RESIDENT IN THAT STATE TO
RETAIN A PORTION OF THE COMMISSION PAID ON A LIKE POLICY OF
INSURANCE WRITTEN, COUNTERSIGNED OR DELIVERED BY THE AGENT
IN THAT STATE AT THE REQUEST OF A NONRESIDENT AGENT OR
NONRESIDENT BROKER OF THAT STATE, THEN THE AGENT RESIDENT IN
MARYLAND WHO SIGNED OR COUNTERSIGNED A POLICY OF INSURANCE
WRITTEN BY A RESIDENT OF THAT STATE LICENSED AS A
NONRESIDENT AGENT IN MARYLAND COVERING A SUBJECT OF
INSURANCE RESIDENT, LOCATED, OR TO BE PERFORMED IN MARYLAND
SHALL RETAIN AN EQUAL PRO RATA PORTION OF ANY COMMISSION ON
THE POLICY OF INSURANCE.

(2)  NOTHING IN THIS SECTION SHALL ALTER OR MODIFY THE
REQUIREMENTS OF SECTION 171 OF THIS ARTICLE.

(3)  Only a licensed agent who is a resident of
Maryland and who is compensated by commissions on such
policies, and who is not an employee or officer of the
insurer, may be granted the power to sign or countersign
policies or endorsements subject to the provisions of this
section; provided, however, that no provision of this
section shall be construed so as to prevent the delegation
of signatory or countersigning duties, by the agent, to bona
fide employees of such agent who are not employees of
lending institutions nor to preclude the payment of
commissions upon such policies to a corporation or
partnership insurance agency or otherwise as the agent may
direct.

(3a) Such countersignatures of policies and
endorsements may not be affixed unless the said policies or
endorsements set forth when applicable the rates, or
premiums, a description of the property insured and the name
and address of the insured.

(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 common carrier in interstate or foreign
commerce, or of any vehicle principally garaged and used in
another state, or covering any liability 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.