License required; exceptions

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    (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.

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

        (1)    devotes substantially all of the officer’s or employee’s services to activities other than soliciting insurance contracts; and

        (2)    does not receive, for soliciting insurance contracts, a commission or other compensation that is directly dependent on the amount of business obtained.

    (c)    (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)    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:

            (i)    life insurance contracts that, in the aggregate, exceed $200,000 of coverage for all lives insured for the preceding calendar year;

            (ii)    a permanent life insurance contract offering more than $10,000 of coverage on an individual life;

            (iii)    a term life insurance contract offering more than $50,000 of coverage on an individual life;

            (iv)    any insurance contracts other than life that the society may write that insure the lives of more than 25 individuals; or

            (v)    any variable life insurance or variable annuity contract.


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