Code of Maryland Regulations
Title 31 - MARYLAND INSURANCE ADMINISTRATION
Subtitle 15 - UNFAIR TRADE PRACTICES
Chapter 31.15.14 - Administrative Service Fees
Section 31.15.14.03 - Administrative Service Fee
Universal Citation: MD Code Reg 31.15.14.03
Current through Register Vol. 51, No. 19, September 20, 2024
A. An insurance producer who is licensed under Insurance Article, Title 10, Annotated Code of Maryland to sell health insurance may not charge an administrative service fee for providing an administrative service to an employer unless the insurance producer:
(1) Clearly and accurately completes the disclosure form set forth in Regulation .06 of this chapter in accordance with this chapter and the instructions provided in the disclosure form;
(2) Lists on the disclosure form each of the administrative services to be provided and the fee for each administrative service to be provided;
(3) If the insurance producer sells a health benefit plan to the employer, discloses the amount of commission or other compensation that the insurance producer will receive from an insurer, nonprofit health service plan, or health maintenance organization related to the sale of the health benefit plan on the disclosure form;
(4) Signs the completed disclosure form and obtains the signature of the authorized representative of the employer on the completed disclosure form; and
(5) Provides the employer with a signed copy of the completed disclosure form prior to charging an administrative service fee.
B. An insurance producer may not charge an administrative service fee:
(1) For services related to the sale, solicitation, negotiation, or servicing of a health benefit plan of an employer that are compensated by commissions or other compensation paid to the insurance producer by an insurer, nonprofit health service plan, or health maintenance organization; or
(2) For services provided when an insurance producer acts as an administrator under Insurance Article, Title 8, Subtitle 3, Annotated Code of Maryland or an Adviser under Insurance Article, Title 10, Subtitle 2, Annotated Code of Maryland.
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