SB 93
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 93 (Chair, Finance Committee)(By Request - Departmental -
Maryland Insurance Administration)
Finance Economic Matters
Insurance - Nonresident Insurance Producers - Cancellation
This departmental bill establishes qualifications for maintaining a nonresident insurance
producer license; specifically, a licensee must be (1) currently licensed as a resident
insurance producer in the licensee’s home state and (2) in good standing in the
licensee’s home state. The Maryland Insurance Commissioner is authorized to cancel
(rather than having to deny, suspend, or revoke) the license of a nonresident insurance
producer after receiving notice that the person is no longer licensed in the person’s home
state.
Fiscal Summary
State Effect: The bill is not anticipated to materially affect State operations or finances.
Local Effect: The bill does not directly affect local governmental operations or finances.
Small Business Effect: The Maryland Insurance Administration (MIA) has determined
that this bill has minimal or no impact on small business (attached). The Department of
Legislative Services concurs with this assessment.
Analysis
Current Law: An insurance producer is a person licensed by MIA to sell insurance in the
State on behalf of an insurer. An applicant must be of good character and trustworthy, meet
any education requirements specified by law and set by the Commissioner, and pay any
applicable license fee. The Commissioner is authorized to waive these requirements under
specified circumstances.
If an applicant for an insurance producer license is not a resident of the State, the applicant
may instead obtain a nonresident insurance producer license. MIA may issue such a license
to an applicant if:
 the applicant is currently licensed as a resident insurance producer and in good
standing in the applicant’s home state;
 the applicant has submitted an application for licensure, as specified;
 the applicant has paid the applicable license fee; and
 the applicant’s home state awards nonresident insurance producer licenses to
residents of Maryland on the same basis.
Background: The only actions the Commissioner can currently take against a nonresident
producer who lacks a home state license are denial, suspension, and revocation – all of
which are adverse actions that must be reported by the producer to other jurisdictions. A
nonresident insurance producer may surrender his or her home state license for a reason
that is not deserving of an adverse action, but MIA must take an adverse action against that
person anyway. The bill, therefore, corrects this limitation by allowing the Commissioner
to cancel the license, which is not considered an adverse action.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Insurance Administration; Department of Legislative
Services
Fiscal Note History: First Reader - January 8, 2020
mr/jc Third Reader - January 24, 2020
Analysis by: Richard L. Duncan Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 93/ Page 2
ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: Insurance – Nonresident Insurance Producers - Cancellation
BILL NUMBER: SB 93
PREPARED BY:
(Dept./Agency) Maryland Insurance Administration
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
X WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND
SMALL BUSINESS
OR
WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND
SMALL BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
There is no fiscal impact on small business associated with this legislation.
SB 93/ Page 3


Statutes affected:
Text - First - Insurance - Nonresident Insurance Producers - Cancellation: 10-119 Insurance, 2-112 Insurance, 10-105 Insurance, 10-111 Insurance, 10-104 Insurance
Text - Third - Insurance - Nonresident Insurance Producers - Cancellation: 10-119 Insurance, 2-112 Insurance, 10-105 Insurance, 10-111 Insurance, 10-104 Insurance