1. (a) Except as otherwise provided in this section, a person must obtain a license issued under Title 10, Subtitle 1 of this article before the person acts as an insurance producer for a fraternal benefit society.

2. (b) Subsection (a) of this section does not apply to a regular salaried officer or employee of a licensed society who:

   1. (1) devotes substantially all of the officer's or employee's services to activities other than soliciting insurance contracts; and
   2. (2) does not receive, for soliciting insurance contracts, a commission or other compensation that is directly dependent on the amount of business obtained.

3. (c)

   1. (1) Subsection (a) of this section does not apply to a fraternal benefit insurance producer or representative of a society that devotes, or intends to devote, less than 50% of the person's time to selling, soliciting and negotiating insurance contracts for the society.

   2. (2) For the purposes of paragraph (1) of this subsection, a person is presumed to be devoting, or intending to devote, 50% or more of the person's time to selling, soliciting or negotiating insurance contracts for a society if, in the preceding calendar year, the person has sold, solicited and negotiated:

      1. (i) life insurance contracts that, in the aggregate, exceed $200,000 of coverage for all lives insured for the preceding calendar year;
      2. (ii) a permanent life insurance contract offering more than $10,000 of coverage on an individual life;
      3. (iii) a term life insurance contract offering more than $50,000 of coverage on an individual life;
      4. (iv) any insurance contracts other than life that the society may write that insure the lives of more than 25 individuals; or
      5. (v) any variable life insurance or variable annuity contract.

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 183, § 1, eff. Jan. 1, 1998; Acts 2001, c. 731, § 1, eff. July 2, 2001.

Formerly Art. 48A, §§ 344A, 344B.