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§ 10-602. Limited lines license required to sell insurance in connection with and incidental to...

West's Annotated Code of MarylandInsuranceEffective: October 1, 2018

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 10. Regulation of Insurance Professions
Subtitle 6. Motor Vehicle Rental Companies (Refs & Annos)
Effective: October 1, 2018
MD Code, Insurance, § 10-602
§ 10-602. Limited lines license required to sell insurance in connection with and incidental to motor vehicle rental
Currentness
In general
(a) A motor vehicle rental company shall hold a limited lines license to sell insurance in connection with, and incidental to, the rental of a vehicle before the company or its employees or authorized representatives may sell or offer any policies of insurance in this State to a renter in connection with, and incidental to, a rental agreement.
Authorized activities of motor vehicle rental company employees and authorized representatives
(b) A limited lines license to sell insurance in connection with, and incidental to, the rental of a vehicle issued under this subtitle shall also authorize any employee and any authorized representative of the motor vehicle rental company who is trained, under § 10-604(a)(4) of this subtitle, to act on behalf of, and under the supervision of, a motor vehicle rental company, with respect to the kinds of insurance specified in § 10-604(b)(2) of this subtitle.
Acts of employee or authorized representation deemed acts of motor vehicle rental company
(c) The acts of an employee or authorized representative offering or selling insurance coverage on behalf of a motor vehicle rental company shall be deemed the acts of the motor vehicle rental company for the purposes of this subtitle.
Treatment of premiums collected from renter of motor vehicle
(d) A motor vehicle rental company holding a limited lines license to sell insurance in connection with, and incidental to, the rental of a vehicle issued under this subtitle is not required to treat premiums collected from a renter that purchased insurance from the motor vehicle rental company as funds received in a fiduciary capacity if:
(1) the insurer represented by the motor vehicle rental company has consented in a written agreement, signed by an officer of the insurer, that the premiums do not need to be segregated from other funds received by the motor vehicle rental company in connection with the vehicle rental; and
(2) the charges for insurance coverage are itemized but not billed to the renter separately from the charges for the vehicle rental.
Employees or authorized representatives who offer or sell insurance coverage
(e) An employee or an authorized representative of a motor vehicle rental company who offers or sells insurance coverage on behalf of the motor vehicle rental company:
(1) may be compensated for offering or selling insurance coverage under this subtitle; but
(2) may not be compensated in a manner that is based solely on the number of customers who purchase rental vehicle insurance.
Construction of subtitle
(f) This subtitle may not be construed to prohibit payment of compensation to an employee or an authorized representative of a motor vehicle rental company who offers or sells insurance coverage on behalf of the motor vehicle rental company for activities that are incidental to the employee's overall activities.
Motor vehicle rental companies which hold limited lines lines license to sell insurance
(g) A motor vehicle rental company that holds a limited lines license to sell insurance in connection with, and incidental to, the rental of a vehicle issued under this subtitle shall:
(1) maintain a register, on a form the Commissioner requires, containing:
(i) the names of each employee or authorized representative who offers limited lines insurance on behalf of the motor vehicle rental company; and
(ii) the business addresses of all locations in the State where employees or authorized representatives offer limited lines insurance on behalf of the motor vehicle rental company; and
(2) submit the register for inspection by the Commissioner as the Commissioner requires.

Credits

Added by Acts 1999, c. 628, § 2, eff. Jan. 1, 2000; Acts 1999, c. 629, § 2, eff. Jan. 1, 2000. Amended by Acts 2001, c. 731, § 1, eff. July 2, 2001; Acts 2015, c. 51, § 1, eff. July 1, 2015; Acts 2018, c. 192, § 1, eff. Oct. 1, 2018.
MD Code, Insurance, § 10-602, MD INSURANCE § 10-602
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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