Commission Alternatives - Fees and Requirements

Charge fee in addition to or in lieu of collecting commissions?
Specific Disclosures or written agreements required to charge fees to a client?
Admin fees for insurance placement?
Charges for services unrelated to the placement of insurance?
Additional licensing required?
Insurance producers may charge fees in addition to or in lieu of commissions for insurance placement, provided such compensation is contemplated in the premium/charge for insurance filed with and approved by the commissioner and/or included in the policy.  Md. Code Ann., Ins. § 27-216. 
Yes.  Licensed advisers may charge fees for insurance services, if they enter into a written contract specifying fees and services, in a form approved by the Commissioner.  Md. Code Ann. Ins. § 10-215.  
Generally, an adviser must obtain a separate license, however, a producer acting on behalf of an insurer may use the title “adviser” provided the producer certifies to the commissioner that the adviser has completed successfully a course approved by the commissioner.  It appears that a producer must obtain an adviser’s license when not acting on behalf of an insurer.  Md. Code Ann. Ins. § 10-203. 

Stop-Loss Information

Employer Size
Specific Stop Loss Restrictions
Aggregate Stop Loss Restrictions
Guaranteed Issue of Stop-Loss Policies
Other notes
Ins. § 15-129
All employers
Prohibits specific deductible limits below $10,000
Prohibits aggregate coverage attachment points of less than 115% of expected claims


Malpractice Damage Cap

Damage Cap Amount

State Code

Starting in 2005 for malpractice claims: $650,000 increasing by $15,000 each year beginning in 2009, 125% for wrongful death claims. No cap on economic damages.