PARRIS N. GLENDENING, Governor

Ch. 35

(C) RAISING POLICY LIMITS.

AN INSURER MAY NOT RAISE THE POLICY LIMITS OF COVERAGE, IF THE
EFFECT COULD BE AN INCREASE IN THE PREMIUM WITHOUT THE PRIOR CONSENT
OF THE INSURED.

(D) SURPLUS LINES BROKERS.

(1) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, A SURPLUS
LINES BROKER THAT HOLDS A CERTIFICATE OF QUALIFICATION UNDER TITLE 3,
SUBTITLE 3 OF THIS ARTICLE MAY CHARGE A REASONABLE POLICY FEE, NOT
EXCEEDING $75, ON EACH POLICY PROCURED BY A QUALIFIED AGENT OR
QUALIFIED BROKER TO WHOM THE SURPLUS LINES BROKER PAYS A COMMISSION.

(2) THE POLICY FEE CHARGED IN ACCORDANCE WITH THIS
SUBSECTION MUST BE REASONABLY RELATED TO THE COST OF UNDERWRITING,
ISSUING, PROCESSING, AND SERVICING THE POLICY BY THE SURPLUS LINES BROKER
FOR THE SURPLUS LINES INSURER.

(3) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION, A SURPLUS
LINES BROKER THAT HOLDS A CERTIFICATE OF QUALIFICATION UNDER TITLE 3,
SUBTITLE 3 OF THIS ARTICLE MAY RECOUP FROM THE PROSPECTIVE INSURED THE
ACTUAL COST OF AN INSPECTION REQUIRED FOR THE PLACEMENT OF SURPLUS
LINES INSURANCE IF:

(I) THE INSPECTION IS REQUIRED BY THE SURPLUS LINES

INSURER;

(II) THE COST OF THE INSPECTION IS ACTUALLY INCURRED BY
THE SURPLUS LINES BROKER AND NOT RETAINED BY THE SURPLUS LINES BROKER;

(III) THE SURPLUS LINES BROKER DOES NOT HAVE A FINANCIAL
INTEREST IN AND DOES NOT RECEIVE COMPENSATION FROM THE PERSON THAT
PERFORMS THE INSPECTION; AND

(IV) THE COST OF THE INSPECTION IS DOCUMENTED AND

VERIFIABLE.

(4) REGARDLESS OF THE NUMBER OF INSURERS PARTICIPATING ON A

RISK:

(I) ONLY ONE INSPECTION FEE MAY BE CHARGED TO RECOUP
THE ACTUAL COST OF AN INSPECTION UNDER PARAGRAPH (3) OF THIS SUBSECTION
FOR EACH POLICY OR CERTIFICATE OF COVERAGE; AND

(II) ONLY ONE POLICY FEE MAY BE CHARGED UNDER PARAGRAPH
(1) OF THIS SUBSECTION FOR EACH POLICY OR CERTIFICATE OF COVERAGE.

(5) ON A FORM APPROVED BY THE COMMISSIONER, THE SURPLUS LINES
BROKER SHALL MAKE A CLEAR AND CONSPICUOUS WRITTEN DISCLOSURE OF:

(I) ANY INSPECTION FEE;

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