PARRIS N. GLENDENING, Governor

Ch. 36

10-118. APPOINTMENTS AND TERMINATIONS.

(A)     IN GENERAL.

(1)      WHEN AN INSURER DOING BUSINESS IN THE STATE MAKES OR
TERMINATES AN APPOINTMENT, THE INSURER IMMEDIATELY SHALL:

(I)       FILE WITH THE COMMISSIONER WRITTEN NOTICE OF THE
APPOINTMENT OR TERMINATION; AND

(II)     PAY TO THE COMMISSIONER THE APPLICABLE FEE REQUIRED
BY § 2-112 OF THIS ARTICLE.

(2)      THE COMMISSIONER MAY REQUIRE AN INSURER THAT TERMINATES
AN APPOINTMENT TO FILE A STATEMENT OF FACTS ABOUT THE TERMINATION,
INCLUDING THE DATE AND CAUSE OF THE TERMINATION.

(3)      A DISCLOSURE TO THE COMMISSIONER RELATIVE TO 'THE
TERMINATION AND DATE AND CAUSE OF THE TERMINATION IS A PRIVILEGED
COMMUNICATION AND MAY NOT BE USED AS EVIDENCE IN A COURT PROCEEDING
OTHER THAN AN APPEAL FROM AN ACTION OF THE COMMISSIONER.

(4)      THE APPOINTMENT AND APPOINTMENT FEE PROVISIONS OF THIS
SUBSECTION DO NOT APPLY TO AGENTS WITH AN APPOINTMENT FROM AN INSURER
ON JUNE 30, 1985.

(B)     APPLICATION FROM AGENT WITHOUT APPOINTMENT.

WITHIN 30 DAYS AFTER AN INSURER RECEIVES AN APPLICATION FOR LIFE
INSURANCE, HEALTH INSURANCE, OR AN ANNUITY FROM AN AGENT THAT DOES
NOT HAVE AN APPOINTMENT FROM THE INSURER, THE INSURER SHALL:

(1)      REJECT THE APPLICATION IN ACCORDANCE WITH § XX-XXX [48A §
234A] OF THIS ARTICLE; OR

(2)      FILE WITH THE COMMISSIONER WRITTEN NOTICE OF APPOINTMENT
UNDER SUBSECTION (A) OF THIS SECTION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 169 and 167(c)(4).

In subsection (a)(3) of this section, the former word "action" is deleted as
included in the word "proceeding".

Defined terms: "Agent" § 1-101
"Annuity" § 1-101
"Appointment" § 1-101
"Commissioner" § 1-101
"Health insurance" § 1-101
"Insurer" § 1-101
"Life insurance" § 1-101

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