1. (a) A surplus lines broker may not:

   1. (1) knowingly or negligently deliver a false binder or cover note; or
   2. (2) fail to notify the insured promptly of any material change with respect to surplus lines insurance by delivery to the insured of a substitute binder or cover note as provided in § 3-321 of this subtitle.
2. (b) A violation of subsection (a) of this section is a violation of this article.
3. (c) A person that violates subsection (a) of this section is guilty of a misdemeanor and on conviction is subject to the penalty provided by § 1-301 of this article or to any greater applicable penalty provided by law.

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 70, § 1, eff. Oct. 1, 1997.

Formerly Art. 48A, § 191.