(a) In order to obtain a license, an applicant shall:
(1)(i) execute a fidelity bond as provided in subsection (c) of this section; or
(ii) maintain general liability insurance as provided in subsection (d) of this section; and
(2) maintain in an office in the State, documents or other records that are made in the State or relate to a service performed in the State and make those records available for inspection by the Secretary for compliance with this title.
Proof of compliance
(b) The Secretary may not issue or renew a license or registration unless the applicant, licensee, or registrant submits proof of compliance with subsection (a) of this section.
Fidelity bonds
(c)(1) The fidelity bond required by subsection (a)(1) of this section shall cover all individuals who:
(i) are licensed to provide security systems services, are registered as security systems technicians, or have access to circumventional information; or
(ii) are applicants for a license or registration.
(2) The fidelity bond shall be used for the benefit of any person injured on the premises of a consumer of security systems services by any fraudulent or dishonest act of a licensee, a security systems technician, or other individual who has access to circumventional information that is willful or malicious.
(3) The applicant for a license or registration shall submit a copy of the fidelity bond to the Secretary with the license or registration application.
(4)(i) The amount of the fidelity bond required under subsection (c)(1) of this section shall be at least $50,000.
(ii) The total liability of the surety to all insured persons under the fidelity bond may not exceed the sum of the fidelity bond.
(5)(i) If an employer's fidelity bond is canceled, forfeited, or terminated by the surety, the surety shall immediately notify the Secretary.
(ii) If a surety fails to notify the Secretary as required by this paragraph, the fidelity bond shall continue in effect until the notice is given to the Secretary.
General liability insurance
(d)(1) General liability insurance required by subsection (a)(1)(ii) of this section shall be in the amount of at least $50,000.
(2) An applicant for a license or registration shall submit proof of insurance meeting the requirements of paragraph (1) of this subsection to the Secretary with the application.
(3) If the general liability insurance required under this section is canceled, the insured shall immediately notify the Secretary.
Failure to maintain fidelity bond or liability insurance
(e) If an agency fails to maintain the required fidelity bond or liability insurance as required in this section, upon notification, the Secretary:
(1) shall suspend the license; and
(2) may not reinstate the license until the agency submits proof of the required bond or insurance to the Secretary.
Injunctions
(f) In addition to § 18-504 of this title, a court of competent jurisdiction may enjoin the operation of any employer who violates the requirements of this section.
Credits
Added as Business Occupations and Professions § 18-402 by Acts 1996, c. 226, § 2, eff. June 1, 1996. Renumbered as Business Occupations and Professions § 18-401 by Acts 1997, c. 520, § 1, eff. Oct. 1, 1997. Amended by Acts 1998, c. 21, § 1, eff. April 14, 1998; Acts 2002, c. 517, § 1, eff. Oct. 1, 2002.
MD Code, Business Occupations & Professions, § 18-401, MD BUS OCCUP & PROF § 18-401
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
