PARRIS N. GLENDENING, Governor

Ch. 36

AN INSURANCE CONTRACT PROCURED AS SURPLUS LINES COVERAGE FROM
AN UNAUTHORIZED INSURER IN ACCORDANCE WITH THIS SUBTITLE IS VALID AND
ENFORCEABLE AS TO ALL PARTIES AND SHALL BE ACCEPTED AND RECOGNIZED IN
ALL MATTERS AND RESPECTS TO THE SAME EFFECT AS LIKE INSURANCE
CONTRACTS ISSUED BY AUTHORIZED INSURERS.

(B) INSURANCE CONTRACT IN VIOLATION OF SUBTITLE.

AN INSURANCE CONTRACT ENTERED INTO IN VIOLATION OF THIS SUBTITLE
MAY BE ENFORCED BY THE INSURED IN ACCORDANCE WITH THE TERMS OF THE
INSURANCE CONTRACT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 187.

In subsection (a) of this section, the word "fully", which formerly modified
"valid", is deleted as surplusage.

In subsection (b) of this section, the former reference to "his rights" is deleted
as surplusage.

Also in subsection (b) of this section, the former word "provisions" is deleted
as unnecessary in light of the word "terms".

Defined terms: "Authorized insurer" § 1-101
"Insurance contract" § 1-101
"Unauthorized insurer" § 1-101

3-310. CERTIFICATE OF QUALIFICATION REQUIRED FOR SURPLUS LINES BROKER.

A PERSON MUST OBTAIN A CERTIFICATE OF QUALIFICATION TO ACT AS A
SURPLUS LINES BROKER BEFORE THE PERSON ACTS AS A SURPLUS LINES BROKER IN
THE STATE.

REVISOR'S NOTE: This section is new language added to state expressly that
which only was implied in the former law, i.e., a person must obtain a
certificate of qualification before the person acts as a surplus lines broker in
the State.

Defined term: "Person" § 1-101

3-311. QUALIFICATIONS OF APPLICANTS.

AN APPLICANT FOR A CERTIFICATE OF QUALIFICATION MUST BE:

(1)      QUALIFIED AS A BROKER FOR PROPERTY INSURANCE, CASUALTY
INSURANCE, AND SURETY INSURANCE; AND

(2)      COMPETENT AND TRUSTWORTHY, AS DETERMINED BY THE
COMMISSIONER.

REVISOR'S NOTE: This section is new language derived without substantive
change from the introductory language of former Art. 48A, § 188.

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