Sec. 14.07.02.01. Fund Producers and Their Authority

A. Only a person qualified as an insurance producer under Insurance Article, Title 10, Subtitle 1, Annotated Code of Maryland, may bind coverage in the Maryland Automobile Insurance Fund (MAIF).

B. A person meeting the requirements of §A of this regulation will be called a "fund producer" throughout these regulations.

C. The fund producer's authority to bind coverage is subject to Insurance Article, Title 20, Annotated Code of Maryland, and to these regulations.

D. A fund producer is authorized to bind coverage in MAIF only after being authorized to do so in writing and after being assigned a fund producer number by MAIF.

E. A fund producer is not an agent of MAIF and may not:

(1) Consider the authority to bind coverage as authority to represent MAIF generally;

(2) Make, or permit to be made, written or oral statements which could give the impression that the fund producer is an agent for MAIF; or

(3) Bind coverages in amounts greater than those required by the minimum financial responsibility laws of the State.

F. Duties of Fund Producers.

(1) Fund producers shall:

(a) Notify MAIF of the binding of coverage by using MAIF's electronic binding system or by any other means approved by MAIF as outlined in the Producer Bulletin;

(b) Permit representatives of MAIF to inspect their files, records, logs, and accounts involving MAIF insureds, at any time during the fund producer's normal business hours;

(c) Submit all premiums and return commissions within the time frames required by MAIF and specified in Producer Bulletins; and

(d) File a report form when requested by MAIF's Director of Underwriting listing each bond filed on behalf of the fund producer with the Maryland Insurance Administration, and include the following:

(i) The name, address, and telephone number of the issuing company, and

(ii) The bond identification number, coverage limits, and named beneficiaries.

(2) Any changes in bonding shall be reported to the Director of Underwriting within 30 days of the date of the change.

(3) All MAIF materials, forms, manuals, electronic records, and supplies are considered the property of MAIF and are to remain in the control of the fund producer at all times.

G. Confirmation of Eligibility.

To confirm their eligibility to place coverage with MAIF on a current basis, every fund producer shall submit to MAIF's Director of Underwriting, a copy of either a current license or a letter of certification issued by the Maryland Insurance Administration, at the following times:

(1) Upon application to the Fund for fund producer authorization; and

(2) Upon written request by MAIF's Director of Underwriting.

H. Any fund producer who employs or retains one or more other persons to solicit, negotiate, or accept insurance business from the public is also responsible that each of those other persons makes the reports required in §G of this regulation.