Ch. 35

1997 LAWS OF MARYLAND

unnecessary in light of the word "may", which grants the Commissioner
discretion, and in light of the required findings, which would determine
whether an order is appropriate.

Defined terms: "Commissioner" § 1-101
"Insurer" § 1-101
"Person" § 1-101

27-503. AGREEMENTS WITH OR REFUSAL TO ACCEPT BUSINESS FROM AGENTS OR
BROKERS.

(A) IN GENERAL.

AN INSURER MAY NOT CANCEL A WRITTEN AGREEMENT WITH AN AGENT OR
BROKER ABOUT INSURANCE OR REFUSE TO ACCEPT INSURANCE BUSINESS FROM
THE AGENT OR BROKER UNLESS THE INSURER COMPLIES WITH THIS SECTION.

(B) NOTICE OF CANCELLATION OR REFUSAL TO RENEW.

(1) THIS SUBSECTION DOES NOT APPLY TO:

(I) POLICIES OF LIFE INSURANCE, HEALTH INSURANCE, SURETY
INSURANCE, WET MARINE AND TRANSPORTATION INSURANCE, AND TITLE
INSURANCE; OR

(II) AGENTS, BROKERS, OR POLICIES OF A COMPANY OR GROUP OF
COMPANIES REPRESENTED BY AGENTS OR BROKERS WHO BY CONTRACTUAL
AGREEMENT REPRESENT ONLY THAT COMPANY OR GROUP OF COMPANIES IF:

1. THE BUSINESS IS OWNED BY THE COMPANY OR GROUP OF

COMPANIES; AND

2. THE CANCELLATION OF ANY CONTRACTUAL
AGREEMENT DOES NOT RESULT IN THE CANCELLATION OR REFUSAL TO RENEW
ANY POLICIES.

(2) IF AN INSURER INTENDS TO CANCEL A WRITTEN AGREEMENT WITH
AN AGENT OR BROKER OR INTENDS TO REFUSE A CLASS OF RENEWAL BUSINESS
FROM AN AGENT OR BROKER, THE INSURER SHALL GIVE THE AGENT OR BROKER
AT LEAST 90 DAYS WRITTEN NOTICE.

(3) NOTWITHSTANDING ANY PROVISION OF THE AGREEMENT TO THE
CONTRARY, THE INSURER SHALL CONTINUE FOR AT LEAST 1 YEAR AFTER
TERMINATION OF THE AGENCY AGREEMENT TO RENEW THROUGH THE AGENT OR
BROKER ANY OF THE POLICIES THAT HAVE NOT BEEN REPLACED WITH OTHER
INSURERS AS EXPIRATIONS OCCUR.

(C) TERMINATION OF AGENT'S OR BROKER'S CONTRACT.

AN INSURER MAY NOT CANCEL OR REFUSE TO RENEW A POLICY OF THE
INSURED BECAUSE OF THE TERMINATION OF THE AGENT'S OR BROKER'S
CONTRACT.

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