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Section 20-512 - Payment of Commission to Producer — Maryland Law | CourtGPT
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  7. Section 20-512 - Payment of Commission to Producer
Maryland Legal Code

Section 20-512 - Payment of Commission to Producer

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(a) Except as provided in subsection (b) of this section, the Fund shall pay to a fund producer of a policyholder to whom a policy is issued a commission: (1) for private passenger auto insurance issued by the Fund, at a rate determined by the Fund but not less than 10% and not to exceed 15% of the total premium; and (2) for any other insurance issued by the Fund, at a rate determined by the Fund but not to exceed 10% of the total premium. (b) The Fund may not pay a commission: (1) on a fully earned basis; (2) if a prospective insured fails to qualify under § 20–502 of this subtitle; or (3) if a prospective insured’s initial payment to the Fund, a fund producer, or premium finance company is not honored. (c) If a policy issued by the Fund is canceled, the Fund shall refund any unearned commissions.