HARRY HUGHES, Governor

3655

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 state [licensed] QUALIFIED 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] QUALIFIED 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] QUALIFIED 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.

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.] WHO
FOR COMPENSATION IN ANY MANNER SOLICITS, PROCURES, OR NEGOTIATES
INSURANCE CONTRACTS OR THE RENEWAL OR CONTINUANCE OF THE
INSURANCE CONTRACTS ON THE BEHALF OF INSURERS. 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]