Md. Code Regs. 31.03.04.01

Current through Register Vol. 51, No. 22, November 1, 2024

Section 31.03.04.01 - Unfair Trade Practice

A. This regulation does not apply to:

(1) Reinsurance of the liability of an admitted insurer;

(2) Insurance against perils of navigation, transit, or transportation upon hulls, freights or disbursements, or other personal property and interest therein, in the course of exportation from or importation into any country, or transportation coastwise, including transportation by land or water from point of origin to final destination and including war risks; and marine builder's risks, dry docks, and marine railways, including insurance of ship repairer's liability, and protection and indemnity insurance, but excluding insurance covering:

(a) Bridges and tunnels,

(b) Pleasure craft that are under 60 feet in length and are owned and used for pleasure and not for business, hire, or other commercial use,

(c) Fishing vessels under 50 gross tons weight that are not part of a fleet of three or more vessels, or

(d) Charter or head boats under 50 gross tons that are not part of a fleet of three or more vessels;

(3) Aircraft insurance;

(4) Insurance on property or operations of railroads engaged in interstate commerce; and

(5) Insurance effectuated in accordance with the Surplus-Line Insurance Law, Insurance Article, Title 3, Subtitle 3, Annotated Code of Maryland.

B. It is deemed to be an unfair trade practice in the business of insurance for any insurance producer licensed both in Maryland and in another state or the District of Columbia to place insurance on risks located in Maryland for Maryland citizens with insurers not authorized to do business in this State.

Agency Note: The Insurance Administration has noted several recent instances where agents or brokers licensed both in Maryland and in another state or the District of Columbia have placed insurance on risks located in Maryland for Maryland citizens with insurers not authorized to do business in this State. While all transactions relating to the making of this insurance may be done outside Maryland, the practice is contrary to the intent of the Legislature as expressed in Insurance Article, §§ 4-101(a), 4-204, and 4-205, Annotated Code of Maryland, as amended to date, and is deemed to be against the best interest of the citizens of this State.

Md. Code Regs. 31.03.04.01

Regulation .01A amended effective April 22, 1996 (23:8 Md. R. 604)
Regulation .01 amended effective April 10, 2006 (33:7 Md. R. 675)
Regulation .01A amended effective December 29, 2008 (35:26 Md. R. 2250)
Regulation .01 amended effective 41:18 Md. R. 1011, eff.10/1/2014

Authority: Insurance Article, §§ 2-109, 4-201, and 4-203, Annotated Code of Maryland