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