Ch. 36                                          1995 LAWS OF MARYLAND

(II)     IS A RESIDENT OF THIS STATE;

(III)    IS COMPENSATED BY COMMISSIONS ON POLICIES SUBJECT TO
THIS SECTION; AND

(IV)    IS NOT AN EMPLOYEE OR OFFICER OF THE INSURER ISSUING
THE POLICY.

(2) THIS SECTION DOES NOT PREVENT AN AGENT FROM:

(I)       DELEGATING THE DUTY OF SIGNING OR COUNTERSIGNING TO
EMPLOYEES OF THE AGENT THAT ARE NOT ALSO EMPLOYEES OF LENDING
INSTITUTIONS; OR

(II)     DIRECTING THE PAYMENT OF COMMISSIONS ON POLICIES
SUBJECT TO THIS SECTION TO A CORPORATION OR PARTNERSHIP INSURANCE
AGENCY OR OTHERWISE.

(E)     PREREQUISITE TO COUNTERSIGNATURE.

AN AGENT MAY NOT COUNTERSIGN A POLICY OR ENDORSEMENT UNLESS THE
POLICY OR ENDORSEMENT STATES, AS APPLICABLE:

(1)      THE RATES OR PREMIUMS;

(2)      A DESCRIPTION OF THE PROPERTY INSURED; AND

(3)      THE NAME AND ADDRESS OF THE INSURED.

(F)      COMMISSIONS.

IF THE LAW OF ANOTHER STATE REQUIRES AN AGENT THAT IS A RESIDENT OF
THAT STATE TO KEEP PART OF THE COMMISSION PAID ON A POLICY WRITTEN,
COUNTERSIGNED, OR DELIVERED BY THE AGENT IN THAT STATE ON REQUEST OF A
NONRESIDENT AGENT OR NONRESIDENT BROKER OF THAT STATE, AN AGENT THAT
IS A RESIDENT OF THIS STATE AND THAT SIGNS OR COUNTERSIGNS A POLICY
WRITTEN BY AN AGENT THAT IS A RESIDENT OF THE OTHER STATE AND QUALIFIED
AS A NONRESIDENT AGENT IN THIS STATE COVERING A SUBJECT OF INSURANCE
RESIDENT, LOCATED, OR TO BE PERFORMED IN THIS STATE SHALL KEEP AN EQUAL
PRO RATA PART OF ANY COMMISSION ON THE POLICY.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 59.

In subsection (a)(9)(i) of this section, the reference to the "Maryland
Automobile Insurance Fund" is substituted for the former reference to the
"Maryland automobile insurance plan" for clarity.

In subsection (b) of this section, the former word "modify" is deleted as
included in the word "alter".

In subsections (c)(2)(ii) and (f) of this section, the former references to
"regulations" are deleted as included in the references to "law".

- 1244 -