Section 1-101 - Definitions.
§ 1-101. Definitions.
(a) In general.- In this article the following words have the meanings indicated.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language added as the standard introductory language to a definition section. Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
(b) Administration.- "Administration" means the Maryland Insurance Administration.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, §§ 14(a) and 734(b). Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
The former limitation, "unless the context requires otherwise", was deleted by Ch. 36 as unnecessary because the full title of any other administration or department appears in the text when used in this revised article.
Former Art. 48A, § 5(2), which defined "Department" to mean the State Insurance Department of Maryland, was deleted by Ch. 36 as obsolete.
Former Art. 48A, § 492(d), which defined "Department" to mean "the Insurance Department, the Insurance Commissioner or his authorized representative", was deleted by Ch. 36 as obsolete and as misleading because the "Department" does not mean the "Commissioner".
Defined Terms.
"Insurance" § 1-101
(c) Alien insurer.- "Alien insurer" means an insurer that is formed under the laws of a jurisdiction other than the United States or a state.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 6(3). Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
The former word "country" was deleted by Ch. 36 as included in the reference to "jurisdiction".
Defined Terms.
"Insurer" § 1-101
"State" § 1-101
(d) Annuity.-
(1) "Annuity" means an agreement to make periodic payments for which the making or continuance of all or some of a series of the payments, or the amount of a payment, depends on the continuance of a human life.
(2) "Annuity" includes:
(i) an additional benefit that operates to safeguard the contract from lapse or to provide a special surrender value, special benefit, or annuity in the event of the total and permanent disability of the holder; and
(ii) benefits that provide payment or reimbursement for long-term home health care or long-term care in a nursing home or other related institution.
(3) "Annuity" does not include life insurance.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from the first and second sentences of former Art. 48A, § 65. However, Ch. 60, Acts of 1996, corrected a grammatical error in paragraph (1) of this subsection. Chapter 35, Acts of 1997, revised paragraph (2) of this subsection to conform to language used in subsection (w) of this section.
In paragraph (2) of this subsection, Ch. 36 deleted as surplusage the former reference to the "business" of annuities.
Defined Terms.
"Life insurance" § 1-101
(e) Annuity contract.- "Annuity contract" means a contract that provides for an annuity.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from the third sentence of former Art. 48A, § 65. Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Annuity" § 1-101
(f) Appointment.- "Appointment" means an agreement between an insurance producer and insurer under which the insurance producer, for compensation, may sell, solicit, or negotiate policies issued by the insurer.
(g) Authorized insurer.- "Authorized insurer" means an insurer that holds a valid certificate of authority.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 7(1). However, Ch. 35, Acts of 1997, added the word "valid" to modify the term "certificate of authority" for clarity.
The Insurance Article Review Committee notes, for consideration by the General Assembly, that the Maryland Automobile Insurance Fund is authorized by statute to issue policies of automobile liability insurance. See § 20-502(a) of this article. The Maryland Automobile Insurance Fund, however, does not hold a certificate of authority issued by the Commissioner.
Defined Terms.
"Certificate of authority" § 1-101
"Insurer" § 1-101
(h) Burial insurance.- "Burial insurance" includes any kind of agreement, certificate, policy, contract, bond, assurance guarantee, or other arrangement, by bylaw, regulation, or otherwise, in or by which the party that issues the certificate, policy, contract, bond, assurance guarantee, or other arrangement agrees to:
(1) provide for the burial of a named or designated deceased individual;
(2) save harmless anyone for all or part of the costs of the burial of a named or designated deceased individual; or
(3) pay all or part of the incidents of the burial of a named or designated deceased individual.
Revisor's Note.
This subsection is new language derived without substantive change from the first sentence of former Art. 48A, § 488.
In items (1), (2), and (3) of this subsection, the references to a "deceased individual" are substituted for the former references to a "person" and the "body ... of a person" because only a deceased individual would be buried.
Defined Terms.
"Policy" § 1-101
(i) Casualty insurance.-
(1) "Casualty insurance" means:
(i) insurance against legal, contractual, or assumed liability for death, injury, or disability of a human being, or for damage to property;
(ii) if issued as an incidental coverage with or supplemental to liability insurance and regardless of legal liability of the insured, insurance that provides medical, hospital, or surgical disability benefits to injured individuals and funeral and death benefits to dependents, beneficiaries, or personal representatives of individuals killed; or
(iii) unless disapproved by the Commissioner as contrary to law or public policy, insurance against any other kind of loss, damage, or liability that is properly a subject of insurance and not within any other kind of insurance described in this subsection.
(2) "Casualty insurance" includes motor vehicle physical damage insurance, burglary and theft insurance, glass insurance, workers' compensation insurance, employer's liability insurance, and boiler and machinery insurance.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 68. However, Ch. 35, Acts of 1997, made stylistic changes in paragraph (2) of this subsection.
Defined Terms.
"Commissioner" § 1-101
"Insurance" § 1-101
(j) Certificate of authority.- "Certificate of authority" means a certificate issued by the Commissioner to engage in the insurance business.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language added to provide an express definition for the term "certificate of authority". Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Commissioner" § 1-101
"Insurance business" § 1-101
(k) Commissioner.- "Commissioner" means the Maryland Insurance Commissioner.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, §§ 5(1), 478B(3), and 566(c), and former CA § 6-401(b). Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
The former limitation, "[u]nless context requires otherwise", was deleted by Ch. 36 as an unnecessary statement of a general rule of statutory construction.
The reference to the "Maryland Insurance Commissioner" was substituted by Ch. 36 for the former references to the "State Insurance Commissioner of Maryland" and the "State Insurance Commissioner" to use the proper title of the position. See § 2-101(b) of this article.
(l) County.- "County" means a county of the State or Baltimore City.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language added to indicate that a reference in this article to "county" includes Baltimore City, unless the reference specifically provides otherwise. Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Article 1, § 14(a) of the Code provides that "county" includes Baltimore City "unless such construction would be unreasonable". Since the word "unreasonable" in that section has been interpreted in various ways, the Commission to Revise the Annotated Code decided that an explicit definition of "county" should be included in revised articles of the Code.
(m) Domestic insurer.- "Domestic insurer" means an insurer that is formed under the laws of the State.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 6(1). Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Insurer" § 1-101
(n) Foreign insurer.-
(1) "Foreign insurer" means an insurer that is formed under the laws of a jurisdiction other than this State.
(2) Unless the context requires otherwise, "foreign insurer" includes an alien insurer.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 6(2) and (4). Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Alien insurer" § 1-101
"Insurer" § 1-101
(o) Fund producer.- "Fund producer" means a licensed insurance producer, including a licensed independent insurance producer, that has been assigned an authorization code by the Maryland Automobile Insurance Fund.
(p) Health insurance.-
(1) "Health insurance" means insurance of human beings against:
(i) bodily injury, disablement, or death by accident or accidental means, or the expenses of bodily injury, disablement, or death by accident or accidental means;
(ii) disablement or expenses resulting from sickness or childbirth; and
(iii) expenses incurred in prevention of sickness or dental care.
(2) "Health insurance" includes:
(i) accident insurance;
(ii) disability insurance; and
(iii) each insurance appertaining to health insurance.
(3) "Health insurance" does not include workers' compensation insurance.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 66. However, Ch. 35, Acts of 1997, made stylistic changes in paragraph (1)(i) of this subsection and added references to "accident insurance" and "disability insurance" to paragraph (2) of this subsection to clarify that accident insurance and disability insurance are considered types of health insurance.
The Insurance Article Review Committee notes, for consideration by the General Assembly, that there is no precise meaning for "insurance appertaining to health insurance". Since insurance that belongs as a proper function or part of health insurance seems to be contemplated by paragraph (1) of this subsection, paragraph (2)(iii) of this subsection is unnecessary and confusing.
Defined Terms.
"Insurance" § 1-101
(q) Independent insurance producer.- "Independent insurance producer" means an insurance producer:
(1) that is not owned or controlled by an insurer or group of insurers;
(2) the appointment of which does not prohibit the representation of more than one insurer or group of insurers; and
(3) the appointment of which provides that:
(i) at termination, the records of the insurance producer remain the property of the insurance producer; and
(ii) the insurance producer retains the use and control of all expirations incurred during the period when the appointment was in effect.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 166(b). Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Agent" § 1-101
"Appointment" § 1-101
"Insurer" § 1-101
(r) Industrial life insurance.- "Industrial life insurance" means life insurance provided by an individual policy with the term "industrial" printed on the policy as part of the brief description required by § 16-213 of this article, and under which premiums are payable monthly or more frequently, if the face amount of the insurance provided by the policy does not exceed $1,000.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 387. However, Ch. 35, Acts of 1997, corrected the cross-reference in this subsection.
The reference to the term "industrial" printed on the policy was substituted by Ch. 36 for the former reference to "industrial policy" to conform to § 16-213 of this article, which requires the brief description for industrial life insurance policies to include the term "industrial" rather than "industrial policy".
The former reference to premiums being payable "weekly" was deleted by Ch. 36 as included in the reference to premiums being payable "monthly or more frequently".
Defined Terms.
"Insurance" § 1-101
"Life insurance" § 1-101
"Policy" § 1-101
"Premium" § 1-101
(s) Insurance.- Except as expressly provided otherwise in this article, "insurance" means a contract to indemnify or to pay or provide a specified or determinable amount or benefit on the occurrence of a determinable contingency.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 2. However, Ch. 35, Acts of 1997, made a stylistic change in this subsection. Chapter 57, Acts of 1997, added the introductory phrase of this subsection.
(t) Insurance business.-
(1) "Insurance business" includes the transaction of:
(i) all matters pertaining to an insurance contract, either before or after it takes effect; and
(ii) all matters arising from an insurance contract or a claim under it.
(2) "Insurance business" does not include pooling by public entities for self-insurance of casualty, property, or health risks.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 8. However, Ch. 35, Acts of 1997, made a stylistic change in paragraph (1) of this subsection.
Defined Terms.
"Insurance" § 1-101
(u) Insurance producer.-
(1) "Insurance producer" means a person that, for compensation, sells, solicits, or negotiates insurance contracts, including contracts for nonprofit health service plans, dental plan organizations, and health maintenance organizations, or the renewal or continuance of these insurance contracts for:
(i) persons issuing the insurance contracts; or
(ii) insureds or prospective insureds other than the insurance producer.
(2) "Insurance producer" does not include:
(i) an individual who performs clerical or similar office duties while employed by an insurance producer or insurer, including a clerical employee, other than a clerical employee of an insurer, who takes insurance information or receives premiums in the insurance producer's office, if the employee's compensation does not vary with the number of applications or amount of premiums;
(ii) a regular salaried officer or employee of an insurer who gives help to or for a licensed insurance producer, if the officer or employee is not paid a commission or other compensation that depends directly on the amount of business obtained; or
(iii) if not paid a commission, a person that obtains and forwards information for:
1. group insurance coverage;
2. enrolling individuals under group insurance coverage;
3. issuing certificates under group insurance coverage; or
4. otherwise assisting in administering group plans.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 166(a). However, Ch. 35, Acts of 1997, substituted the defined term "person[s]" for the former term "insurer[s]" in paragraph (1) of this subsection and made a stylistic change in paragraph (2)(ii) of this subsection.
In paragraph (1) of this subsection, the phrase "in any manner", which formerly modified "solicits, procures, or negotiates", was deleted by Ch. 36 as surplusage since absent a limitation there is no need to describe the manner of soliciting, procuring, or negotiating.
In paragraph (2)(i) of this subsection, Ch. 36 deleted the former word "used" as included in the word "employed".
The Insurance Article Review Committee notes, for consideration by the General Assembly, the addition of the reference to "mak[ing]" insurance contracts in paragraph (1) of this subsection. It is the understanding of the Committee that the definition of "agent" is intended to include any action that an agent may take under an appointment with an insurer. Since an insurer may authorize an agent to make an insurance contract by binding the insurer, a reference to "mak[ing]" insurance contracts is included in the definition of "agent". This addition is consistent with the reference to "mak[ing]" a policy in the definition of "appointment" in former Art. 48A, § 166(e), now revised as subsection (g) of this section. The addition is not intended to make a substantive change.
Defined Terms.
"Insurance" § 1-101
"Insurer" § 1-101
"Person" § 1-101
"Premium" § 1-101
"Qualified agent" § 1-101
(v) Insurer.- "Insurer" includes each person engaged as indemnitor, surety, or contractor in the business of entering into insurance contracts.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 3. Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Insurance" § 1-101
"Person" § 1-101
(w) Licensed insurance producer.- "Licensed insurance producer" means an insurance producer that has:
(1) obtained a license under Title 10, Subtitle 1 of this article; and
(2) in the case of an insurance producer that acts on behalf of an insurer other than the Maryland Automobile Insurance Fund, obtained an appointment under Title 10, Subtitle 1 of this article.
(x) Life insurance.-
(1) "Life insurance" means insurance for which the probabilities of the duration of human life or the rate of mortality are an element or condition of the insurance.
(2) "Life insurance" includes the granting of:
(i) endowment benefits;
(ii) additional benefits in the event of death by accident or accidental means;
(iii) additional disability benefits in the event of dismemberment or loss of sight;
(iv) additional disability benefits that operate to safeguard the contract from lapse or to provide a special surrender value, special benefit, or annuity in the event of total and permanent disability;
(v) benefits that provide payment or reimbursement for long-term home health care, or long-term care in a nursing home or other related institution;
(vi) burial insurance; and
(vii) optional modes of settlement of proceeds of life insurance.
(3) "Life insurance" does not include workers' compensation insurance.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 63 and, as it described life insurance, the first clause of the first sentence of § 64. However, Ch. 35, Acts of 1997, made stylistic changes in paragraphs (2) and (3) of this subsection.
Defined Terms.
"Annuity" § 1-101
"Burial insurance" § 1-101
"Insurance" § 1-101
(y) Life insurer.- "Life insurer" means an insurer in life insurance.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from the first clause of the first sentence of former Art. 48A, § 64, except as that clause described life insurance. Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
The second clause of the first sentence of former § 64, which stated that life insurers "shall be subject to all the requirements of law applicable to such insurers", was deleted by Ch. 36 as unnecessary. Substantive provisions of this article that apply to life insurers expressly state that application.
The second sentence of former Art. 48A, § 64, which stated that the definition of life insurer "shall not be construed so as to restrict the definition of 'insurer'", was deleted by Ch. 36 as unnecessary since such construction would be unreasonable.
Defined Terms.
"Insurer" § 1-101
"Life insurance" § 1-101
(z) Marine insurance.-
(1) "Marine insurance" includes:
(i) insurance against loss or damage in connection with any risk of navigation, transit, or transportation, including war risks, marine builder's risks and personal property floater risks, to vessels, craft, aircraft, automobiles, trailers, or vehicles of any kind, as well as all goods, freight, cargoes, merchandise, effects, disbursements, profits, money, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry and respondentia interests, and all other kinds of property and interests:
1. on or under water, on land, or in the air;
2. while being assembled, packed, crated, baled, compressed, or similarly prepared for shipment or while awaiting shipment; or
3. during any delay, storage, transshipment, or incidental reshipment;
(ii) except as provided in paragraph (2) of this subsection, insurance against:
1. loss or damage to a person or property in connection with or as part of marine, inland marine, transit, or transportation insurance arising out of or in connection with the construction, repair, operation, maintenance, or use of the subject matter of the insurance; and
2. legal liability of the insured for loss of or damage to the person or property;
(iii) insurance against loss or damage to precious stones, jewels, jewelry, gold, silver and other precious metals, whether used in business or trade or otherwise or whether in course of transportation or otherwise; and
(iv) except as provided in paragraph (2) of this subsection, insurance against loss or damage to bridges, tunnels, other instrumentalities of transportation and communication, auxiliary facilities and related equipment, piers, wharves, docks, slips, other aids to navigation and transportation, dry docks, and marine railways.
(2) "Marine insurance" does not include:
(i) life insurance, surety bonds, or insurance against loss because of bodily injury to a person arising out of ownership, maintenance, or use of an automobile; or
(ii) insurance against loss or damage to buildings that are instrumentalities of transportation and communication, their furniture and furnishings, and fixed contents and supplies stored in the buildings.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 70(1)(i). Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Insurance" § 1-101
"Life insurance" § 1-101
"Person" § 1-101
(aa) Marine protection and indemnity insurance.- "Marine protection and indemnity insurance" means insurance against, or against legal liability of the insured for, loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of a vessel, craft, or instrumentality used in ocean or inland waterways, including legal liability of the insured for personal injury, illness, or death or for loss or damage to the property of another person.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 70(1)(ii). However, Ch. 35, Acts of 1997, made stylistic changes in this subsection.
Defined Terms.
"Insurance" § 1-101
"Person" § 1-101
(bb) Mutual insurer.- "Mutual insurer" means an insurer that is incorporated without capital stock and the governing body of which is elected in accordance with this article.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 248. Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Insurer" § 1-101
(cc) Negotiate.- "Negotiate" means to confer directly with or offer advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers.
(dd) Person.- "Person" means an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, partnership, firm, association, corporation, or other entity.
(ee) Policy.-
(1) "Policy" means the written instrument in which an insurance contract is set forth.
(2) "Policy" includes all clauses, endorsements, riders, and other papers attached to or made part of the insurance contract.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 364. Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Insurance" § 1-101
(ff) Premium.-
(1) "Premium" means consideration for insurance.
(2) "Premium" includes:
(i) except as provided in paragraph (3) of this subsection, an assessment; and
(ii) a membership fee, policy fee, survey fee, inspection fee, service fee, or other similar fee in consideration for an insurance contract.
(3) "Premium" does not include:
(i) an assessment as described in § 9-225 of this article; or
(ii) an assessment made under any State law that provides for insolvency protection or insurance availability.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, §§ 333 and 365. However, Ch. 60, Acts of 1996, corrected the cross-reference in paragraph (3)(i) of this subsection. Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
In paragraph (1) of this subsection, the former reference to "rates or other required contributions by whatever name known" was deleted by Ch. 36 as included in the general reference to "consideration for insurance".
Defined Terms.
"Insurance" § 1-101
"Policy" § 1-101
(gg) Property insurance.-
(1) "Property insurance" means insurance on real or personal property on land, in water, or in the air or an interest in real or personal property against loss or damage from any hazard or cause and against loss that is consequential to the loss or damage.
(2) "Property insurance" includes fire insurance, flood insurance, extended coverage insurance, homeowners insurance, farm owners insurance, allied lines insurance, earthquake insurance, growing crops insurance, aircraft physical damage insurance, automobile physical damage insurance, glass insurance, livestock insurance, and animal insurance.
(3) "Property insurance" does not include insurance against legal liability for loss or damage to real or personal property.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, §§ 67 and 631(e). Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Insurance" § 1-101
(hh) Reciprocal insurance.- "Reciprocal insurance" means insurance that arises from an exchange among subscribers of mutual agreements of indemnity and that is effected through an attorney in fact common to the subscribers.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 277. Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Insurance" § 1-101
(ii) Reciprocal insurer.- "Reciprocal insurer" means an unincorporated aggregation of subscribers that operate individually and collectively through an attorney in fact to provide reciprocal insurance.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 278. Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Reciprocal insurance" § 1-101
(jj) Reinsurance.- "Reinsurance" means a contract under which an insurer obtains insurance for itself from another insurer for all or part of an insurance risk.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 73. However, Ch. 35, Acts of 1997, made a stylistic change in this subsection.
The former references to "originating" insurer, "ceding" insurer, "assuming" insurer, and "reinsurer" were deleted by Ch. 36 as unnecessary in the definition. For definitions of "ceding insurer" and "reinsurer", see § 5-901 of this article.
Defined Terms.
"Insurance" § 1-101
"Insurer" § 1-101
(kk) Sell.- "Sell" means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurer.
(ll) Solicit.- "Solicit" means to attempt to sell insurance or to ask or urge a person to apply for a particular kind of insurance from a particular insurer.
(mm) State.- Except as otherwise expressly provided in this article, "state" means:
(1) a state, possession, territory, or commonwealth of the United States; or
(2) the District of Columbia.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 6(5). It was revised by Ch. 36 to conform to the standard definition of "state" used in other revised articles of the Code. However, Ch. 35, Acts of 1997, added the introductory exception language in light of other definitions of the term "state" that appear in this revised article. See, e.g., §§ 9-201 and 25-101 of this article.
The former limitation on the contextual use of the term "state" to signify a jurisdiction other than the State of Maryland was deleted by Ch. 36 as unnecessary, since references in this article to the State of Maryland are signified by the words "the State" or "this State".
(nn) Stock insurer.- "Stock insurer" means an insurer that is incorporated with capital that is divided into shares and owned by its stockholders.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 247. Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Insurer" § 1-101
(oo) Surety insurance.- "Surety insurance" includes:
(1) fidelity insurance, which is insurance that guarantees the fidelity of persons that hold positions of public or private trust;
(2) insurance that guarantees the performance of contracts other than insurance contracts;
(3) insurance that guarantees the execution of bonds, undertakings, and contracts of suretyship; and
(4) insurance that indemnifies banks, bankers, brokers, or financial corporations or associations against loss from any cause of bills of exchange, notes, bonds, securities, evidences of debt, deeds, mortgages, warehouse receipts, other valuable papers, documents, money, precious metals, articles made from precious metals, jewelry, watches, necklaces, bracelets, gems, and precious and semi-precious stones, including loss during transportation by messenger or in armored motor vehicles, but not against other risks of transportation or navigation, and insurance against loss or damage to a bank's, banker's, broker's, or financial corporation's or association's premises or furniture, fixtures, equipment, safes, and vaults on the premises caused by burglary, robbery, theft, vandalism, or malicious mischief, or attempted burglary, robbery, theft, vandalism, or malicious mischief.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 69. However, Ch. 35, Acts of 1997, made stylistic changes in this subsection.
In item (4) of this subsection, the former reference to a "moneyed" corporation was deleted by Ch. 36 as included in the reference to a "financial" corporation.
Defined Terms.
"Insurance" § 1-101
"Person" § 1-101
(pp) Surplus lines insurance.- "Surplus lines insurance" means the full amount or kind of insurance needed to protect the interest of the insured that:
(1) cannot be obtained from an authorized insurer; or
(2) for the particular kind and class of insurance to provide coverage against liability of persons described in § 24-206(1) of this article, cannot be obtained from three or more authorized insurers that write that kind and class of insurance on a broad basis.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 184(a). However, Ch. 60, Acts of 1996, corrected the cross-reference in item (2) of this subsection. Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Authorized insurer" § 1-101
"Insurance" § 1-101
"Person" § 1-101
(qq) Title insurance.- "Title insurance" means insurance of owners of property or other persons that have an interest in the property against loss by encumbrance, defective title, invalidity of title, or adverse claim to title.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 71. Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
The former reference to "liens or encumbrances" on property was deleted by Ch. 36 as included in the reference to an "interest" in the property.
Defined Terms.
"Insurance" § 1-101
"Person" § 1-101
(rr) Unauthorized insurer.- "Unauthorized insurer" means an insurer that does not hold a certificate of authority.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 7(2). Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Certificate of authority" § 1-101
"Insurer" § 1-101
(ss) Wet marine and transportation insurance.- "Wet marine and transportation insurance" means the part of marine insurance that includes only:
(1) insurance of vessels, crafts, or hulls and interests in or related to them;
(2) insurance of marine builder's risks or marine war risks;
(3) marine protection and indemnity insurance;
(4) insurance of freights and disbursements pertaining to a subject of insurance under this subsection; and
(5) insurance of personal property and interests in personal property, in connection with any risk of navigation, transit, or transportation:
(i) in the course of exportation from or importation into a country and in the course of transportation along a coast or on inland waters, including transportation by land, water, or air from point of origin to final destination;
(ii) while being prepared for and while awaiting shipment; and
(iii) during any delay, storage, transshipment, or incidental reshipment.
Special Revisor's Note.
As enacted by Ch. 36, Acts of 1995, this subsection was new language derived without substantive change from former Art. 48A, § 70(2). Chapter 35, Acts of 1997, repealed and reenacted this subsection without change.
Defined Terms.
"Insurance" § 1-101
"Marine insurance" &