{"data":{"id":"us-md/md.-code-insurance-8-209","jurisdiction":"us-md","citation":"Md. Code, Insurance § 8–209","heading":"","body":"(a) A managing general agent may not:\n(1) commit the insurer to participate in insurance or reinsurance syndicates;\n(2) appoint or hire an insurance producer to solicit, procure, or negotiate insurance contracts for the insurer without ensuring that the insurance producer is licensed under Title 10, Subtitle 1 of this article;\n(3) take an action that would violate § 27-503 of this article if taken directly by the insurer;\n(4) without the insurer’s written approval, pay or commit the insurer to pay a claim, net of reinsurance, that exceeds 1% of the insurer’s policyholder surplus as of December 31 of the immediately preceding calendar year;\n(5) without the insurer’s prior written approval, collect any payment from a reinsurer;\n(6) commit the insurer to a claim settlement with a reinsurer;\n(7) employ an individual who also is employed by the insurer;\n(8) allow an agent or employee of the managing general agent to serve on the insurer’s board of directors; or\n(9) appoint a submanaging general agent unless:\n(i) approval of the appointment is obtained from the Commissioner and from the insurer for whom the managing general agent acts; and\n(ii) the submanaging general agent complies with any requirements imposed by the Commissioner under § 8-213 of this subtitle.\n(b) (1) Except as provided in paragraph (2) of this subsection, a managing general agent may not bind reinsurance or retrocessions for an insurer.\n(2) A managing general agent may bind facultative reinsurance contracts under obligatory facultative agreements if the contract with the insurer contains reinsurance underwriting guidelines for reinsurance both assumed and ceded, including:\n(i) a list of reinsurers with which the automatic agreements are in effect;\n(ii) the coverages and amounts or percentages that may be reinsured; and\n(iii) commission schedules.","path":["Article - Insurance"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gin\u0026section=8-209","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:59:28Z","sha256":"1a5334da2caefc1042c8590a00e55476258bd1484ae5579ac9303914caa992ff","source_id":"us-md","stale":false,"prev":"us-md/md.-code-insurance-8-208","next":"us-md/md.-code-insurance-8-210"},"notice":"GroundRules: Original legal text. Not legal advice."}