PARRIS N. GLENDENING, Governor

Ch. 36

UNLESS A COPY OF EACH BINDER OR COVER NOTE HAS BEEN FILED WITH AND
APPROVED BY THE COMMISSIONER, THE SURPLUS LINES BROKER, AS SOON AS
REASONABLY POSSIBLE, SHALL GET THE POLICY FROM THE INSURER AND DELIVER
IT TO THE INSURED TO REPLACE THE BINDER OR COVER NOTE PREVIOUSLY
DELIVERED.

(C) CHANGE IN INSURER, PROPORTION OF RISK, OR COVERAGE.

A SURPLUS LINES BROKER PROMPTLY SHALL DELIVER TO THE INSURED AN
APPROPRIATE SUBSTITUTE FOR OR ENDORSEMENT OF THE ORIGINAL BINDER OR
COVER NOTE THAT ACCURATELY SHOWS THE CURRENT STATUS OF THE COVERAGE
AND THE RESPONSIBLE INSURER IF, AFTER ISSUANCE AND DELIVERY OF THE
ORIGINAL BINDER OR COVER NOTE, THERE IS A CHANGE IN:

(1)      THE IDENTITY OF THE INSURER;

(2)      THE PROPORTION OF THE DIRECT RISK ASSUMED BY AN INSURER;
OR

(3)      ANY OTHER MATERIAL ASPECT OF THE INSURANCE COVERAGE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 191(a), (b), and (c).

Defined terms: "Commissioner" § 1-101
"Insurance" § 1-101
"Insurer" § 1-101
"Policy" § 1-101
"Surplus lines insurance" § 1-101

3-322. RECORDS.

(A)     IN GENERAL.

EACH SURPLUS LINES BROKER SHALL KEEP SEPARATE RECORDS AND
ACCOUNTS OF ALL BUSINESS TRANSACTED UNDER THE SURPLUS LINES BROKER'S
CERTIFICATE OF QUALIFICATION, INCLUDING COPIES OF:

(1)      ANY DAILY REPORT MADE BY THE SURPLUS LINES BROKER; AND

(2)      EACH BINDER OR COVER NOTE DELIVERED BY THE SURPLUS LINES
BROKER.

(B)     PERIOD FOR KEEPING RECORDS.

THE RECORDS DESCRIBED BY SUBSECTION (A) OF THIS SECTION SHALL BE
KEPT BY THE SURPLUS LINES BROKER FOR 3 YEARS AFTER THE ISSUANCE OF THE
COVERAGE TO WHICH THE RECORD RELATES AND SHALL BE AVAILABLE AT ANY
REASONABLE TIME DURING THAT PERIOD FOR EXAMINATION BY THE
COMMISSIONER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 193(a).

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