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§ 10-703. Limited lines license required to sell portable electronics insurance

West's Annotated Code of MarylandInsuranceEffective: July 1, 2016

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 10. Regulation of Insurance Professions
Subtitle 7. Portable Electronics Vendors (Refs & Annos)
Effective: July 1, 2016
MD Code, Insurance, § 10-703
§ 10-703. Limited lines license required to sell portable electronics insurance
Currentness
In general
(a) A vendor shall hold a limited lines license to sell coverage under a policy of portable electronics insurance before the vendor or the employees of or authorized representatives of the vendor may sell or offer to sell coverage under a policy of portable electronics insurance to a customer.
Authorization of employees or authorized representatives of vendors to sell insurance coverage
(b) A limited lines license issued under this subtitle shall also authorize any salaried or hourly employee or authorized representative of the vendor to sell coverage under a policy of portable electronics insurance to a customer only if the employee or authorized representative is:
(1) trained under § 10-705 of this subtitle to act on behalf of the vendor; and
(2) acting under the supervision of the vendor.
Acts of employee or authorized representative deemed acts of vendor
(c) The acts of an employee or authorized representative offering to sell or selling coverage under a policy of portable electronics insurance shall be deemed the acts of the vendor for the purposes of this subtitle.
Billing and collection of premiums
(d)(1) A vendor may bill and collect premiums from covered customers for coverage under a policy of portable electronics insurance.
(2) A vendor that bills and collects premiums under this section is not required to maintain the premiums collected in a segregated account if:
(i) the vendor's appointing insurer agrees in writing that segregation of funds is not required;
(ii) the vendor remits the funds collected to the appointing insurer or that insurer's appointed insurance producer within 60 days after receipt; and
(iii) the funds received by the vendor from a covered customer for the sale of portable electronics insurance are held in trust by the vendor in a fiduciary capacity for the benefit of the vendor's appointing insurer.
(3)(i) Except as provided in subparagraph (ii) of this paragraph, the premiums for coverage under a policy of portable electronics insurance shall be separately itemized from the charges for the purchase or lease of the portable electronics.
(ii) If portable electronics insurance coverage is included in the price of the purchase or lease of portable electronics or related services, the vendor shall provide clear and conspicuous written notice to the customer that the portable electronics insurance coverage is included with the portable electronics or related services.
Compensation for billing and collection services
(e)(1) A vendor may receive compensation for billing and collection services under a policy of portable electronics insurance.
(2) A vendor or an authorized representative of the vendor may compensate the employees of the vendor or of the authorized representative in a manner that does not depend solely on the sale of portable electronics insurance.

Credits

Added by Acts 2009, c. 316, § 1, eff. Jan. 1, 2010; Acts 2009, c. 317, § 1, eff. Jan. 1, 2010. Amended by Acts 2012, c. 601, § 1, eff. Oct. 1, 2012; Acts 2012, c. 602, § 1, eff. Oct. 1, 2012; Acts 2013, c. 525, § 1, eff. Oct. 1, 2013; Acts 2016, c. 693, § 1, eff. July 1, 2016; Acts 2016, c. 694, § 1, eff. July 1, 2016.
MD Code, Insurance, § 10-703, MD INSURANCE § 10-703
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.
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