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Maryland Insurance Administration backs easing pre-approval for limited‑line credit insurance courses
Summary
Maryland Insurance Administration associate commissioner Mary Quay told the Senate Finance Committee that Senate Bill 228 would remove a prior-approval requirement for courses used to qualify applicants for limited‑line credit insurance licenses and replace it with record-retention and exam‑based review.
The Maryland Insurance Administration urged the Senate Finance Committee on Jan. 23 to give Senate Bill 228 a favorable report, saying the bill would remove an advance filing requirement for training courses used to qualify applicants for limited‑line credit insurance and replace it with post‑hoc record retention and market‑conduct review.
Mary Quay, associate commissioner for market regulation and professional licensing at the Maryland Insurance Administration, told the committee the proposal would "eliminate the need to file for approval in advance and instead impose record retention requirements so that the MIA can examine the course materials later and obtain documentation to ensure that the companies and the insurance producers have complied with the law." She added the change would "relieve carriers of the requirement to file course materials in advance and would allow the MIA to conduct efficient regulatory review through market conduct or producer enforcement actions." Quay urged a favorable report.
The bill applies to limited‑line credit insurance, a license that allows producers to sell only credit insurance products. Quay explained that limited‑line credit insurance "is not something that is normally sold by full‑lines producers" and that, under current law, an applicant must complete a course approved by the commissioner before licensing. Under the bill, companies would retain course materials for later examination rather than submit them for prior approval.
During questioning, Senator Rose asked what type of course would satisfy the requirement; Quay replied that many insurance license courses are offered by community colleges or private companies and that the course in this instance would typically be "a course taught by the insurance company on their products." No further witnesses appeared to oppose or amend the bill during the hearing.
The hearing record contains only committee testimony and no final vote or amendment on SB 228.
