(a) Each authorized insurer doing business in the State shall accept and honor each request by a policyholder for a change of insurance producer of record within 30 working days after receipt of the request unless the policyholder withdraws the request in writing.
(b) The new insurance producer of record must have a current appointment and contract with the authorized insurer before the change of insurance producer of record will be effective.
(c) (1) Subject to the provisions of paragraph (2) of this subsection, the new insurance producer of record shall be paid all commissions payable on the policy effective not later than the next anniversary date of the policy following the effective date of change.
(2) The commissions payable under paragraph (1) of this subsection do not include:
(i) vested life insurance commissions;
(ii) supplemental health insurance commissions; or
(iii) commissions or other compensation payable under an insurer’s retirement or deferred compensation plan with the insurance producer.
(d) A request for a change of insurance producer of record shall:
(1) be in writing; and
(2) include:
(i) the policyholder’s name and address;
(ii) the authorized insurer’s name and address;
(iii) the policy number;
(iv) the name and address of the new insurance producer of record;
(v) the date of the request;
(vi) the signature of the policyholder; and
(vii) the signature of acceptance by the new insurance producer.
(e) This section does not require an authorized insurer to:
(1) appoint and contract with an insurance producer of record;
(2) alter an insurer’s existing contract with an insurance producer which provides for direct compensation in lieu of commission; and
(3) require the payment of full commissions to a new insurance producer where the original writing insurance producer or current insurance producer continues to have responsibility for processing and matters relating to the policyholder.