1. A. In this chapter, the following terms have the meanings indicated.

2. B. Terms Defined.

   1. (1) “Administrative service” has the meaning stated in Insurance Article, §27-216(g), Annotated Code of Maryland.

   2. (2) “Administrative service fee” means a fee that is:

      1. (a) Charged to an employer by an insurance producer for providing an administrative service to the employer; and

      2. (b) A reasonable amount for the administrative services provided to the employer after consideration of:

         1. (i) The fee customarily charged to a similarly situated employer for the same or similar services in the employer’s location,
         2. (ii) The time the producer spent providing the service, and
         3. (iii) The expenses the producer incurred to provide the administrative service to the employer, including the cost of the product or service.
   3. (3) “Disclosure form” means the form set forth in Regulation .06 of this chapter that shall be used by an insurance producer when charging a fee for an administrative service.
   4. (4) “Health benefit plan” has the meaning stated in Insurance Article, §2-112.2, Annotated Code of Maryland.
   5. (5) “Health insurance” has the meaning stated in Insurance Article, §1-101(p), Annotated Code of Maryland.
   6. (6) “Insurance producer” has the meaning stated in Insurance Article, §1-101(u), Annotated Code of Maryland.

Authority: Insurance Article, §§2-109 and 27-216, Annotated Code of Maryland

Effective date: December 12, 2013 (40:24 Md. R. 2018)