PARRIS N. GLENDENING, Governor

Ch. 36

8-447. RESERVED.
8-448. RESERVED.

PART V. FRATERNAL BENEFIT AGENTS.
8-449. CERTIFICATE OF QUALIFICATION REQUIRED; EXCEPTIONS.

(A)     IN GENERAL.

EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, A PERSON MUST OBTAIN
A CERTIFICATE OF QUALIFICATION ISSUED UNDER PART V OF THIS SUBTITLE
BEFORE THE PERSON ACTS AS A FRATERNAL BENEFIT AGENT IN THE STATE.

(B)     OFFICERS OR EMPLOYEES EXCEPTED.

SUBSECTION (A) OF THIS SECTION DOES NOT APPLY TO A REGULAR SALARIED
OFFICER OR EMPLOYEE OF A LICENSED SOCIETY WHO:

(1)      DEVOTES SUBSTANTIALLY ALL OF THE OFFICER'S OR EMPLOYEE'S
SERVICES TO ACTIVITIES OTHER THAN SOLICITING INSURANCE CONTRACTS; AND

(2)      DOES NOT RECEIVE, FOR SOLICITING INSURANCE CONTRACTS, A
COMMISSION OR OTHER COMPENSATION THAT IS DIRECTLY DEPENDENT ON THE
AMOUNT OF BUSINESS OBTAINED.

(C)     PART-TIME SOLICITATION EXCEPTED.

(1)      SUBSECTION (A) OF THIS SECTION DOES NOT APPLY TO A
FRATERNAL BENEFIT AGENT OR REPRESENTATIVE OF A SOCIETY THAT DEVOTES,
OR INTENDS TO DEVOTE, LESS THAN 50% OF THE PERSON'S TIME TO SOLICITING
AND PROCURING INSURANCE CONTRACTS FOR THE SOCIETY.

(2)      FOR THE PURPOSES OF PARAGRAPH (1) OF THIS SUBSECTION, A
PERSON IS PRESUMED TO BE DEVOTING, OR INTENDING TO DEVOTE, 50% OR MORE
OF THE PERSON'S TIME TO SOLICITING OR PROCURING INSURANCE CONTRACTS
FOR A SOCIETY IF, IN THE PRECEDING CALENDAR YEAR, THE PERSON HAS
SOLICITED AND PROCURED:

(I)       LIFE INSURANCE CONTRACTS ON BEHALF OF THE SOCIETY IN
AN AMOUNT OF INSURANCE EXCEEDING $50,000; OR

(II)     ANY KIND OF INSURANCE ON THE PERSONS OF MORE THAN 25
INDIVIDUALS FOR WHICH THE PERSON HAS RECEIVED OR WILL RECEIVE A
COMMISSION OR OTHER COMPENSATION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 344A and 344B(1) and (2) and the exception
in the introductory language of § 344B.

Subsection (a) of this section is rephrased in standard language to state
affirmatively that a person must obtain a certificate of qualification before the
person acts as a fraternal benefit agent in the State.

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