(a) With respect to a plan or the life insurer, an administrator, directly or indirectly:
(1) may not deal with the assets of the plan or the life insurer in the administrator's own interest or for the administrator's own account;
(2) in a transaction involving the plan or the life insurer, may not act in any capacity on behalf of or represent in any capacity a party whose interests are adverse to the interests of the life insurer, the plan, or the plan's participants or beneficiaries;
(3) other than commissions or service fees received from an insurer, may not receive consideration for the administrator's own personal account from a party dealing with the plan or the life insurer in connection with a transaction involving the assets of the plan or the life insurer; or
(4) may not knowingly participate in or attempt to conceal an act or omission of another administrator involved in the administration of that plan or in activities on behalf of the life insurer, knowing that the act or omission of the other administrator would be a violation of this subtitle.
Restrictions relating to procurement of bond
(b) An administrator may not procure the bond required by this subtitle from a surety insurer or other company or through an insurance producer in whose business operations the administrator has direct or indirect control or significant financial interest.
Assets of plan dealt with administrator’s own interest
(c) Notwithstanding subsection (a)(1) of this section, an administrator is not considered to have dealt with the assets of a plan in the administrator's own interest or for the administrator's own account solely because:
(1) the administrator held the assets, at interest for the benefit of the administrator, for an administratively reasonable period of time before remitting the assets to an insurer or other payee; or
(2) the compensation that the administrator receives for services necessary for establishing or operating the plan does not exceed reasonable compensation.
Credits
Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 2001, c. 731, § 1, eff. July 2, 2001; Acts 2019, c. 100, § 1, eff. Oct. 1, 2019.
Formerly Art. 48A, § 691.
MD Code, Insurance, § 8-316, MD INSURANCE § 8-316
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.
