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PARRIS N. GLENDENING, Governor
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Ch. 29
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the payment of producer commissions in the small group health insurance
market.
BY adding to
Article - Insurance
Section 15-1206(f)
Annotated Code of Maryland
(1997 Volume and 2001 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Insurance
15-1206.
(F) A CARRIER MAY NOT DISCRIMINATE AMONG SMALL EMPLOYERS ON THE
COMMISSION PAYABLE TO THE PRODUCER.
(F) A CARRIER MAY NOT IMPLEMENT A PRODUCER COMMISSION SCHEDULE
THAT VARIES THE AMOUNT OF A COMMISSION BASED ON THE SIZE OF A SMALL
EMPLOYER GROUP UNLESS THE VARIATION:
(1) IS INVERSELY RELATED TO THE SIZE OF THE SMALL EMPLOYER
GROUP;
(2) APPLIES TO THE CUMULATIVE PREMIUM PAID OVER A SPECIFIC
PERIOD OF TIME, IS UNIFORMLY APPLIED. AND IS INVERSELY RELATED TO THE
CUMULATIVE PREMIUM PAID DURING THE PERIOD OF TIME; OR
(3) IS ESTABLISHED BY A CONTRACT BETWEEN THE CARRIER AND EACH
OUTSIDE PRODUCER AND THE CARRIER:
(I) SPECIFIES IN THE CONTRACT THE GROUP SIZE TO WHICH THE
VARIATION APPLIES;
(II) DIRECTS THE OUTSIDE PRODUCER TO REFER SMALL
EMPLOYERS OF THE SPECIFIED SIZE TO AN EMPLOYEE OF THE CARRIER WHO IS A
LICENSED PRODUCER OR TO A COMPANY AFFILIATED WITH THE CARRIER THROUGH
COMMON OWNERSHIP WITHIN AN INSURANCE HOLDING COMPANY; AND
(III) PAYS A COMMISSION TO THE EMPLOYEE PRODUCER
DESCRIBED IN ITEM (II) OF THIS ITEM.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply to
all policies, contracts, and health benefit plans issued, delivered, or renewed in the
State on or after June 1, 2002.
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 2002.
Approved April 9, 2002.
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- 1099 -
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