31.13.03.15

.15 Commission to Insurance Producers and Creditors.

A. On all loans originating in Maryland, an insurer may not directly or indirectly pay, allow, or offer to pay any form of commission, as defined in Regulation .04B(7) of this chapter, in excess of the limits stated in this chapter on a form of credit involuntary unemployment benefit insurance, regardless of whether the payment is made to a licensed insurance producer, a creditor, or an affiliate, corporate parent, subsidiary, associate, director, officer, active or retired employee, or other representative of the creditor or the licensed insurance producer.

B. The maximum commission payable to all payees on each policy of credit involuntary unemployment benefit insurance may not exceed a total of 36 percent of prima facie premium rates.

C. A commission paid to a creditor, or an affiliate, corporate parent, subsidiary, associate, director, officer, active or retired employee, or other representative of the creditor, regardless of whether the payee is a licensed insurance producer, may not exceed 32 percent of prima facie premium rates.

D. Payment as described in §C of this regulation does not preclude payment of commission to a licensed insurance producer not listed in §C of this regulation, if the total commission paid under §C of this regulation and under this section does not exceed the maximum rate allowed in §B of this regulation.

E. Payment of Commission by Insurance Producer.

(1) A licensed insurance producer proposing to pay commission to any payee listed in §C of this regulation shall first inquire of the insurer whether any commission is being paid by the insurer to that payee on the same business.

(2) The insurance producer may not pay that payee an amount which, if added to the amount paid by the insurer for the same business, would cause the payment to exceed the maximum rate allowed in §C of this regulation.

(3) The insurer shall cooperate with the insurance producer in providing the information called for by this section.