Ch. 36                                          1995 LAWS OF MARYLAND

Defined terms: "Casualty insurance" § 1-101
"Commissioner" § 1-101
"Property insurance" § 1-101
"Surety insurance" § 1-101

3-312. APPLICATIONS FOR CERTIFICATE OF QUALIFICATION.

AN APPLICANT FOR A CERTIFICATE OF QUALIFICATION SHALL:

(1)      FILE WITH THE COMMISSIONER AN APPLICATION. ON THE FORM
THAT THE COMMISSIONER PROVIDES; AND

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

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 188(1) and (2).

Defined term: "Commissioner" § 1-101

3-313. BOND.

(A)     REQUIRED.

BEFORE THE COMMISSIONER ISSUES A CERTIFICATE OF QUALIFICATION TO AN
APPLICANT, THE APPLICANT SHALL FILE WITH THE COMMISSIONER A BOND THAT:

(1)      IS SUBJECT TO APPROVAL BY THE COMMISSIONER;

(2)      RUNS TO THE STATE;

. (3) IS EXECUTED BY THE APPLICANT AS PRINCIPAL AND BY A
CORPORATE SURETY INSURER AUTHORIZED TO DO BUSINESS IN THE STATE;

(4)      IS IN THE PENAL SUM OF $10,000; AND

(5)      IS CONDITIONED THAT THE BROKER WILL:

(I)       CONDUCT BUSINESS IN ACCORDANCE WITH THIS ARTICLE;
AND

(II)     REMIT PROMPTLY THE TAXES REQUIRED BY § 3-324 OF THIS
SUBTITLE.

(B)     TOTAL LIABILITY.

THE TOTAL LIABILITY OF THE SURETY INSURER UNDER THE BOND MAY NOT
EXCEED THE PENAL SUM OF THE BOND.

(C)     NOTICE OF TERMINATION.

THE SURETY INSURER MAY NOT CANCEL THE BOND UNLESS, AT LEAST 30 DAYS
BEFORE CANCELING THE BOND, THE SURETY INSURER FILES WRITTEN NOTICE OF
THE CANCELLATION.

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