EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0265*
HOUSE BILL 265
C4, J5 4lr1801
CF SB 336
By: Delegate Qi
Introduced and read first time: January 12, 2024
Assigned to: Economic Matters and Health and Government Operations
A BILL ENTITLED
AN ACT concerning 1
Insurance – Producer Licensing Requirements – Education and Experience 2
FOR the purpose of repealing the requirements for education and experience for licensing 3
certain insurance producers, including producers for property and casualty 4
insurance, life insurance, health insurance, annuities, certain limited lines, and 5
related products; and generally relating to requirements for licensing insurance 6
producers. 7
BY repealing and reenacting, with amendments, 8
Article – Insurance 9
Section 10–104, 10–105, 10–108, 10–109, 10–119(b) and (h), 10–120(a), 10–122(a), 10
10–124(a), and 10–125(d) 11
Annotated Code of Maryland 12
(2017 Replacement Volume and 2023 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – Insurance 16
10–104. 17
(a) This section applies to: 18
(1) a license to act as an insurance producer for insurance other than life 19
insurance, health insurance, or annuities; 20
(2) a limited lines license to act as an insurance producer for limited line 21
credit insurance other than credit life insurance or credit health insurance; and 22
2 HOUSE BILL 265
(3) a limited lines license to act as an insurance producer for a line of 1
insurance described in §§ 10–122 through 10–125 of this subtitle. 2
(b) To qualify for a license to which this section applies, an individual applicant 3
must meet the requirements of this section. 4
(c) An applicant must be of good character and trustworthy based on the 5
standards of § 10–126 of this subtitle. 6
(d) An applicant must be at least 18 years of age. 7
(e) An applicant may not have committed any act that the Commissioner finds 8
would warrant denial of a license under § 10–126 of this subtitle. 9
(f) [(1) Except as otherwise provided in this section: 10
(i) so that the applicant is reasonably familiar with the kind or 11
subdivision of insurance for which the applicant wants to be licensed, the applicant must 12
complete successfully a program of studies that has been established or approved by the 13
Commissioner; 14
(ii) during the 3 years immediately preceding the date of application, 15
the applicant must have been employed regularly for periods totaling at least 1 year: 16
1. by the Administration as an employee or by an insurer or 17
insurance producer; and 18
2. in responsible insurance duties in connection with the 19
kind or subdivision of insurance for which the applicant wants to be licensed; or 20
(iii) during the 3 years immediately preceding the date of entering or 21
immediately after discharge from the armed forces of the United States, the applicant must 22
have been employed regularly for periods totaling at least 1 year: 23
1. by an insurer or insurance producer; and 24
2. in connection with the kind or subdivision of insurance for 25
which the applicant wants to be licensed. 26
(2) In the case of an applicant for a limited lines license to act as an 27
insurance producer for limited line credit insurance, the applicant shall complete 28
successfully a program of instruction that is: 29
(i) provided by an insurer that sells, solicits, or negotiates limited 30
line credit insurance; and 31
(ii) approved by the Commissioner. 32 HOUSE BILL 265 3
(g)] Except as otherwise provided in this section, the applicant must pass an 1
examination given by the Commissioner under this subtitle. 2
[(h) The Commissioner may waive the requirements of subsection (f) of this section 3
for an applicant for a license for property insurance or casualty insurance if the applicant: 4
(1) (i) has been conferred the Chartered Property Casualty 5
Underwriter (C.P.C.U.) designation by The American Institute for Chartered Property 6
Casualty Underwriters; and 7
(ii) is a member in good standing of the Society of Chartered 8
Property and Casualty Underwriters; 9
(2) has been conferred the designation of Fellow of the Casualty Actuarial 10
Society; 11
(3) has been conferred the designation of Certified Insurance Counselor 12
(CIC) by the Society of Certified Insurance Counselors; or 13
(4) has been conferred the designation of: 14
(i) Accredited Adviser in Insurance (AAI); or 15
(ii) Associate in Risk Management (ARM).] 16
[(i)] (G) An applicant for a limited lines license to act as an insurance producer 17
for limited line credit insurance need not meet the examination requirements of subsection 18
[(g)] (F) of this section. 19
[(j)] (H) An applicant may be licensed as to any particular kind or kinds of 20
insurance. 21
10–105. 22
(a) To qualify for a license as an insurance producer for life insurance, health 23
insurance, annuities, nonprofit health service plans, dental plan organizations, health 24
maintenance organizations, or fraternal benefit societies an individual applicant must meet 25
the requirements of this section. 26
(b) An applicant must be of good character and trustworthy based on the 27
standards of § 10–126 of this subtitle. 28
(c) An applicant must be at least 18 years of age. 29
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(d) An applicant may not have committed any act that the Commissioner finds 1
would warrant denial of a license under § 10–126 of this subtitle. 2
(e) [(1) So that the applicant is reasonably familiar with the kind or subdivision 3
of insurance for which the applicant wants to be licensed: 4
(i) the applicant must complete successfully a program of studies 5
that has been established or approved by the Commissioner; 6
(ii) during the 3 years immediately preceding the date of application, 7
the applicant must have been employed regularly for periods totaling at least 1 year: 8
1. by the Administration as an employee or by an insurer or 9
insurance producer; and 10
2. in responsible insurance duties in connection with the 11
kind or subdivision of insurance for which the applicant wants to be licensed; or 12
(iii) during the 3 years immediately preceding the date of entering or 13
immediately after discharge from the armed forces of the United States, the applicant must 14
have been employed regularly for periods totaling at least 1 year: 15
1. by an insurer or insurance producer; and 16
2. in connection with the kind or subdivision of insurance for 17
which the applicant wants to be licensed. 18
(2) In the case of an applicant for a limited lines license to act as an 19
insurance producer for credit life insurance or credit health insurance, the applicant shall 20
successfully complete a program of instruction that is: 21
(i) provided by an insurer that sells, solicits, or negotiates limited 22
line credit insurance; and 23
(ii) approved by the Commissioner. 24
(3) The Commissioner may waive the requirement of paragraph (1)(i) of 25
this subsection for life insurance for an applicant who: 26
(i) 1. has been conferred the Chartered Life Underwriter 27
(C.L.U.) designation by the American College of Life Underwriters; and 28
2. is a member in good standing of the American Society of 29
Chartered Life Underwriters; or 30
(ii) has been conferred the designation of: 31
HOUSE BILL 265 5
1. Fellow of the Society of Actuaries; 1
2. Certified Employee Benefit Specialist (C.E.B.S.); 2
3. Chartered Financial Consultant (ChFC); 3
4. Certified Insurance Counselor (CIC); 4
5. Certified Financial Planner (CFP); 5
6. Fellow, Life Management Institute (FLMI); or 6
7. Life Underwriter Training Council Fellow (LUTCF). 7
(4) The Commissioner may waive the requirement of paragraph (1)(i) of 8
this subsection for health insurance for an applicant who has been conferred the 9
designation of: 10
(i) Registered Health Underwriter (RHU); 11
(ii) Certified Employee Benefit Specialist (C.E.B.S.); 12
(iii) Registered Employee Benefit Consultant (REBC); or 13
(iv) Health Insurance Associate (HIA). 14
(f)] Before taking a written examination, an applicant shall[: 15
(1) demonstrate to the Commissioner that the applicant has completed the 16
requirements set out by the Commissioner, including the requirements of subsection (e) of 17
this section; and 18
(2)] pay the application fee required under § 2–112(a)(6)(vi) of this article. 19
[(g)] (F) (1) Except as otherwise provided in this subsection, the applicant 20
must pass an examination given by the Commissioner under this subtitle. 21
(2) The following applicants are not required to take an examination: 22
(i) an applicant for a license to act as an insurance producer only for 23
selling credit life insurance or credit accident and health insurance or both to a borrower of 24
money or buyer of goods in connection with a loan or credit transaction; 25
(ii) an applicant for a license to act as an insurance producer for a 26
dental plan organization if the applicant for compensation solicited, procured, or negotiated 27
contracts for dental plan organizations continuously from July 1, 1988, to June 30, 1989; 28
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(iii) an applicant for a license to act as an insurance producer for a 1
nonprofit health service plan if the applicant for compensation solicited, procured, or 2
negotiated contracts for nonprofit health service plans continuously from July 1, 1988, to 3
June 30, 1989; or 4
(iv) an applicant for a license to act as an insurance producer for a 5
health maintenance organization if the applicant for compensation solicited, procured, or 6
negotiated contracts for health maintenance organizations continuously from July 1, 1988, 7
to June 30, 1989. 8
[(h)] (G) An applicant may be licensed as to any particular kind or kinds of 9
insurance. 10
10–108. 11
(a) An individual applicant who otherwise qualifies for a license for insurance 12
other than life insurance, health insurance, or annuities is entitled to be examined as 13
provided in this section. 14
(b) To determine the competence of an individual applicant as to the kind or 15
subdivision of insurance for which the applicant wants to become licensed, the applicant 16
shall pass a written examination that relates to that kind or subdivision of insurance. 17
(c) The Commissioner shall adopt reasonable regulations that specify: 18
(1) the scope, type, conduct, and grading of the written examinations; AND 19
(2) the frequency, times, and locations within the State where the written 20
examinations will be held[; and 21
(3) the educational requirements for an individual applicant to be eligible 22
to take a written examination]. 23
(d) Before taking a written examination, an individual applicant shall[: 24
(1) (i) demonstrate to the Commissioner that the applicant has 25
completed the educational requirements set out by the Commissioner; or 26
(ii) submit to the Commissioner at the time of the examination an 27
affidavit from the employer of the applicant stating facts that show compliance with the 28
applicable requirements of § 10–104(h)(2) or (3) of this subtitle, if the applicant qualifies by 29
meeting the experience requirements of § 10–104(h)(2) or (3) of this subtitle; and 30
(2)] pay the application fee required under § 2–112(a)(6)(vi) of this article. 31
HOUSE BILL 265 7
(e) All written examinations shall be graded within 30 days following the date of 1
the examination. 2
(f) An individual applicant who fails an examination may not take another 3
examination until at least 4 days after the date of the last examination that the applicant 4
failed. 5
10–109. 6
(a) An individual applicant who otherwise qualifies for a license for life insurance, 7
health insurance, annuities, nonprofit health service plans, dental plan organizations, or 8
health maintenance organizations is entitled to be examined as provided in this section. 9
(b) (1) Each individual applicant must pass a personal written examination to 10
determine: 11
(i) the competence of the applicant as to life insurance, health 12
insurance, or annuities or to any subdivision of them, including contracts for nonprofit 13
health service plans, vision plans, dental plan organizations, and health maintenance 14
organizations; and 15
(ii) the familiarity of the applicant with the applicable laws of the 16
State. 17
(2) Each examination must be graded within 30 days after the date of the 18
examination. 19
(c) An individual applicant who fails an examination may not take another 20
examination until at least 4 days after the date of the last examination that the applicant 21
failed. 22
(d) The Commissioner shall adopt reasonable regulations that specify: 23
(1) the scope, type, conduct, and grading of the written examinations; AND 24
(2) the frequency, times, and places in the State where the written 25
examinations will be held[; and 26
(3) subject to § 10–105(e) of this subtitle, the educational requirements for 27
an individual applicant to be eligible to take a written examination]. 28
10–119. 29
(b) (1) Subject to paragraph (2) of this subsection and unless denied a license 30
under § 10–126 of this subtitle, a person that is not a resident of this State may obtain a 31
nonresident license to act as an insurance producer if: 32
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(i) the person currently is licensed as a resident insurance producer 1
and in good standing in the person’s home state; 2
(ii) the person has submitted or transmitted to the Commissioner 3
the application for licensure that the person submitted to the person’s home state or a 4
completed uniform application; 5
(iii) the person has paid the applicable fee under § 2–112 of this 6
article; and 7
(iv) the person’s home state awards nonresident insurance producer 8
licenses to residents of this State on the same basis. 9
(2) An individual who applies for an insurance producer license in this 10
State who was previously licensed for the same lines of authority in another state need not 11
comply with the [education, experience, and] examination requirements of §§ 10–104, 12
10–105, and 10–107 through 10–109 of this subtitle if: 13
(i) the person currently is licensed as an insurance producer in the 14
home state of the person; 15
(ii) the application is received by the Commissioner within 90 days 16
after the cancellation of the applicant’s previous license and the prior state issues a 17
certification that, at the time of cancellation, the applicant was in good standing in that 18
state; or 19
(iii) the state’s producer database records, maintained by the 20
National Association of Insurance Commissioners, its affiliates or subsidiaries, indicate 21
that the producer is or was licensed in good standing for the line of authority requested. 22
(h) (1) A person licensed as an insurance producer in another state who moves 23
to this State shall apply to become licensed as a resident insurance producer under § 24
10–111 of this subtitle within 90 days after establishing legal residence in this State. 25
(2) If the person applies to become licensed as a resident insurance 26
producer within 90 days after establishing legal residence in the State, the person need not 27
comply with the [education, experience, and] examination requirements of §§ 10–104, 28
10–105, and 10–107 through 10–109 of this subtitle to obtain a license for any line of 29
authority that the person previously held in the prior state, except where the Commissioner 30
determines otherwise by regulation. 31
10–120. 32
(a) Without regard to the [education, experience, or] examination requirements 33
of this subtitle, the Commissioner may issue a temporary license to act as an insurance 34
producer to an individual if the individual: 35
HOUSE BILL 265 9
(1) is otherwise qualified; and 1
(2) is: 2
(i) the surviving spouse, next of kin, personal representative, or 3
appointee of the personal representative, of a deceased insurance producer; 4
(ii) the spouse, next of kin, employee, or legal guardian of a mentally 5
or physically disabled insurance producer; or 6
(iii) an employee of a firm, or an officer or employee of a corporation, 7
of a deceased or disabled insurance producer. 8
10–122. 9
(a) Without regard to the [education, experience, or] examination requirements 10
of this subtitle, the Commissioner may issue a limited lines license to an individual who or 11
a business entity that sells travel insurance. 12
10–124. 13
(a) Without regard to the [education, experience, or] examination requirements 14
of this subtitle, the Commissioner may issue a limited lines license to an individual who is 15
employed by a health maintenance organization solely to solicit membership in the health 16
maintenance organization under a contract: 17
(1) between the health maintenance organization and the Maryland 18
Department of Health; and 19
(2) in accordance with which the Maryland Department of Health obtains 20
prepaid comprehensive health care services for recipients of medical assistance under § 21
15–105 of the Health – General Article. 22
10–125. 23
(d) Notwithstanding any other provision of this subtitle: 24
(1) (i) the licensing, bonding, [education, experience,] and examination 25
requirements of this subtitle relating to title insurance producers do not apply to law firms; 26
and 27
(ii) except as otherwise provided in paragraph (2) of this subsection, 28
the bonding[, education, experience,] and examination requirements of this subtitle 29
relating to title insurance producers do not apply to attorneys. 30
(2) The bonding requirements of this subtitle are applicable to: 31
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(i) an attorney or an association of attorneys who own, operate, or 1
share an interest in a title agency; and 2
(ii) an attorney who is employed by a title agency as a title insurance 3
producer. 4
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 5
October 1, 2024. 6