Md. Code Regs. 31.09.02.11

Current through Register Vol. 51, No. 24, December 2, 2024

Section 31.09.02.11 - Qualification of Producers for the Sale of Variable Life Insurance

A. Qualification to Sell Variable Life Insurance.

(1) A person may not sell or offer for sale in this State any variable life insurance policy unless the person is a producer and has filed with the Commissioner, in a form satisfactory to the Commissioner, evidence that the person holds a license and other authorizations which may be required by any federal or State securities law for the solicitation, sale, or negotiation of variable life insurance.

(2) A person may not solicit, sell, or act or aid in any manner in the negotiation of a variable life insurance policy unless such person has been so qualified in accordance with the provisions of Insurance Article, §§ 10-105 and 10-109, Annotated Code of Maryland, and is licensed by the Commissioner to act as a producer with life and variable lines of authority.

B. Reports of Disciplinary Actions and Criminal Prosecution. A person qualified in this State under this regulation to act as a producer of variable life insurance policies shall report to the Commissioner in accordance with Insurance Article, §§ 10-126(f) and (g), Annotated Code of Maryland:

(1) Suspension or revocation of a producer license in any other state or territory of the United States;

(2) Imposition of disciplinary sanction, including suspension or expulsion from membership; suspension or revocation or denial of registration imposed upon the producer by any national securities exchange or national securities association or any federal, state, or territorial agency with jurisdiction over securities or variable life insurance;

(3) Judgment or injunction entered against the producer on the basis of conduct deemed to have involved fraud, deceit, misrepresentation, or violation of any insurance or securities law or regulation; or

(4) Criminal prosecution as described under Insurance Article, § 10-126(g), Annotated Code of Maryland.

C. Refusal to Qualify Producer to Sell Variable Life Insurance - Suspension, Revocation, or Nonrenewal of Qualification. The Commissioner may reject an application or suspend, revoke, or refuse to renew a producer's qualification under this regulation to solicit, sell or negotiate variable life insurance policies upon any ground that would bar the applicant or producer from being licensed to solicit, sell, or negotiate life insurance policies in this State. The rules governing proceedings relating to the rejection of a producer's application, suspension or revocation of a producer's license or refusal to renew a producer's license shall also govern proceedings under this regulation.

Md. Code Regs. 31.09.02.11

Regulation .11A amended effective August 22, 1988 (15:17 Md. R. 2048); amended effective 46:8 Md. R. 402, eff. 4/22/2019; amended effective 47:15 Md. R. 713, eff. 7/27/2020