Home Table of Contents

§ 15-922. Commission or compensation of insurance producers and other representatives

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 15. Health Insurance
Subtitle 9. Medicare Supplement Act (Refs & Annos)
MD Code, Insurance, § 15-922
§ 15-922. Commission or compensation of insurance producers and other representatives
Compensation defined
(a)(1) In this section, “compensation” means any pecuniary or nonpecuniary remuneration related to the sale or renewal of a Medicare supplement policy or certificate.
(2) “Compensation” includes bonuses, gifts, and finders' fees.
(3) “Compensation” does not include noncash prizes or awards.
First year commission or other first year compensation
(b) A carrier or other entity may provide a commission or other compensation to an insurance producer or other representative for the sale of a Medicare supplement policy or certificate only if the first year commission or other first year compensation is not more than 200% of the commission or other compensation paid for selling or servicing the Medicare supplement policy or certificate in the second year or period.
Commission or other compensation in subsequent renewal years
(c) A carrier or other entity must provide the same commission or other compensation in subsequent renewal years as the commission or other compensation provided in the second year or period and for no fewer than 5 renewal years.
Replacement of existing Medicare supplement policy or certificate
(d) If an existing Medicare supplement policy or certificate is replaced, the carrier or other entity may not provide to its insurance producers or other producers, and an insurance producer or other producer may not receive, compensation greater than the renewal compensation payable by the succeeding carrier on renewal Medicare supplement policies or certificates.

Credits

Added by Acts 1997, c. 35, § 2, eff. Oct. 1, 1997. Amended by Acts 2001, c. 731, § 1, eff. July 2, 2001.
Formerly Art. 48A, § 468DB.
MD Code, Insurance, § 15-922, MD INSURANCE § 15-922
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document