.03 Qualifications of Agents and Brokers.

A. Qualification to Sell Variable Annuity Contracts.

(1) A person may not sell or offer for sale in this State any variable annuity contract unless the person is an agent or broker and has filed with the Commissioner, in a form satisfactory to the Commissioner, evidence that the person holds any license or authorization which may be required for the solicitation or sale of variable annuities by any federal or State securities law.

(2) A person may not in this State solicit, sell, take applications for, or act or aid in any manner in the negotiation of any contract on a variable basis unless he has qualified for the sale of life insurance and annuities in accordance with the provisions of Insurance Article, Title 10, Subtitle 1, Annotated Code of Maryland, including passing the written examination required under Insurance Article, §§10-105 and 10-109, Annotated Code of Maryland, and is specifically licensed by the Commissioner to act as agent or broker in regard to the sale of contracts on a variable basis.

B. Reports of Disciplinary Actions. A person qualified in this State under this regulation to sell or offer to sell variable annuity insurance shall immediately report to the Commissioner:

(1) Suspension or revocation of the person's agent's 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 of or denial of registration, imposed upon the person by any national securities exchange, or national securities association, or any federal, state, or territorial agency with jurisdiction over securities or variable annuity insurance;

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

C. Refusal to Qualify Agent to Sell Variable Annuity Insurance—Suspension Revocation, or Nonrenewal of Qualification. The Commissioner may reject an application or suspend, revoke, or refuse to renew any agent's qualification under this regulation to sell or offer to sell variable annuity insurance upon any ground that would bar the applicant or agent from being licensed to sell other life insurance contracts in this State. The rules governing a proceeding relating to the suspension or revocation of an agent's license shall also govern the proceeding for suspension or revocation of an agent's qualification to sell or offer to sell variable annuity insurance.