Maryland Code, INSURANCE 8-449
Terms Used In Maryland Code, INSURANCE 8-449
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.
- Dependent: A person dependent for support upon another.
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
(b) Subsection (a) of this section does not apply to a regular salaried officer or employee of a licensed society who:
(1) devotes substantially all of the officer’s or employee’s services to activities other than soliciting insurance contracts; and
(2) does not receive, for soliciting insurance contracts, a commission or other compensation that is directly dependent on the amount of business obtained.
(c) (1) Subsection (a) of this section does not apply to a fraternal benefit insurance producer or representative of a society that devotes, or intends to devote, less than 50% of the person’s time to selling, soliciting and negotiating insurance contracts for the society.
(2) For the purposes of paragraph (1) of this subsection, a person is presumed to be devoting, or intending to devote, 50% or more of the person’s time to selling, soliciting or negotiating insurance contracts for a society if, in the preceding calendar year, the person has sold, solicited and negotiated:
(i) life insurance contracts that, in the aggregate, exceed $200,000 of coverage for all lives insured for the preceding calendar year;
(ii) a permanent life insurance contract offering more than $10,000 of coverage on an individual life;
(iii) a term life insurance contract offering more than $50,000 of coverage on an individual life;
(iv) any insurance contracts other than life that the society may write that insure the lives of more than 25 individuals; or
(v) any variable life insurance or variable annuity contract.