PARRIS N. GLENDENING, Governor

Ch. 35

"Commissioner" § 1-101
"Health insurance" § 1-101
"Medicare" § 15-901
"Policy" §§ 1-101 and 15-901

15-922. COMPENSATION OF AGENTS AND OTHER REPRESENTATIVES.
(A) "COMPENSATION" DEFINED.

(1) IN THIS SECTION, "COMPENSATION" MEANS ANY PECUNIARY OR
NONPECUNIARY REMUNERATION RELATED TO THE SALE OR RENEWAL OF A
MEDICARE SUPPLEMENT POLICY OR CERTIFICATE.

(2) "COMPENSATION" INCLUDES BONUSES, GIFTS, AND FINDERS' FEES.

(3) "COMPENSATION" DOES NOT INCLUDE NONCASH PRIZES OR

AWARDS.

(B) IN GENERAL.

A CARRIER OR OTHER ENTITY MAY PROVIDE A COMMISSION OR OTHER
COMPENSATION TO AN AGENT OR OTHER REPRESENTATIVE FOR THE SALE OF A
MEDICARE SUPPLEMENT POLICY OR CERTIFICATE ONLY IF THE FIRST YEAR
COMMISSION OR OTHER FIRST YEAR COMPENSATION IS NOT MORE THAN 200% OF
THE COMMISSION OR OTHER COMPENSATION PAID FOR SELLING OR SERVICING THE
MEDICARE SUPPLEMENT POLICY OR CERTIFICATE IN THE SECOND YEAR OR
PERIOD.

(C) RENEWAL YEARS.

A CARRIER OR OTHER ENTITY MUST PROVIDE THE SAME COMMISSION OR
OTHER COMPENSATION IN SUBSEQUENT RENEWAL YEARS AS THE COMMISSION OR
OTHER COMPENSATION PROVIDED IN THE SECOND YEAR OR PERIOD AND FOR NO
FEWER THAN 5 RENEWAL YEARS.

(D) LIMITATIONS.

IF AN EXISTING MEDICARE SUPPLEMENT POLICY OR CERTIFICATE IS
REPLACED, THE CARRIER OR OTHER ENTITY MAY NOT PROVIDE TO ITS AGENTS OR
OTHER PRODUCERS, AND AN AGENT OR OTHER PRODUCER MAY NOT RECEIVE,
COMPENSATION GREATER THAN THE RENEWAL COMPENSATION PAYABLE BY THE
SUCCEEDING CARRIER ON RENEWAL MEDICARE SUPPLEMENT POLICIES OR
CERTIFICATES.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 468DB.

In subsection (a)(1) of this section, the word "means" is substituted for the
former word "includes" to conform with the drafting style for definitions used
throughout the revised articles of the Code.

In subsection (d) of this section, the reference to a "carrier" is added for
consistency with terminology used- throughout this section.

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