31.03.09 Staggered
System for Renewal of Certificates of Qualification
Authority: Insurance
Article, §§2-108, 2-109, and 10-115, Annotated Code of Maryland
.01 Definitions.
A. In
this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Administration" means the Maryland Insurance Administration.
(2) Certificate of
Qualification.
(a) "Certificate of qualification" has the meaning stated in
Insurance Article, §10-101(b), Annotated Code of Maryland.
(b) "Certificate of qualification" includes an interim
certificate of qualification.
(3) "Interim certificate of qualification" means a certificate of
qualification issued for an interim period of 1 — 3 years during the
phase-in of the staggered system for renewal of certificates of qualification.
.02 Establishment of Staggered System of Renewals.
A. In
General. The Administration may establish a staggered system of renewal for
certificates of qualification.
B. Uniform Distribution of Renewal Dates.
(1) The Administration shall establish staggered renewal dates for
certificates of qualification so that approximately the same number of
certificates of qualification are renewed each day.
(2) From time to time, the Administration shall evaluate the monthly volume
of certificate of qualification renewals for the purpose of maintaining
relatively uniform workloads.
(3) The Administration may adjust the monthly volumes of certificate of
qualification renewals by:
(a) Changing the month of expiration of a certificate of qualification;
(b) Prorating the renewal fee for the certificate of qualification and the
fraud prevention fee in accordance with Regulation .04 of this chapter; and
(c) Prorating the continuing education hours for renewal of the certificate
of qualification in accordance with Regulation .05 of this chapter.
.03 Phase-In of Staggered System of Renewals.
A. Initial
Issuance of Certificate of Qualification. For certificates of qualification that
are initially issued on or after April 15, 2001, the Administration shall issue
a certificate of qualification with a term of 2 years from the date of issuance.
B. Renewal of Current Certificate of Qualification. For certificates of
qualification that are renewed on July 1, 2001, the Administration shall:
(1) Issue an interim certificate of qualification for a term of 1 — 3
years as set by the Administration;
(2) Prorate the renewal fee for the interim certificate of qualification
and the fraud prevention fee in accordance with Regulation .04 of this chapter;
and
(3) Prorate the continuing education hours required for renewal of the
interim certificate of qualification in accordance with Regulation .05 of this
chapter.
C. Renewal of Interim Certificate of Qualification. If the holder of an
interim certificate of qualification qualifies for renewal of the interim
certificate of qualification, upon renewal the Administration shall issue a
certificate of qualification with a term of 2 years from the date of issuance.
D. Renewal of Certificate of Qualification Following Phase-In Period. After
the phase-in of the staggered renewal system, the Administration shall renew
certificates of qualification for a term of 2 years from the date of renewal
unless the Administration changes the expiration date under Regulation .02B(3)
of this chapter.
.04 Proration of Fees.
A. Renewal
Fees. If the Administration is required to charge a prorated renewal fee for a
certificate of qualification, the Administration shall calculate the amount of
the prorated fee by:
(1) Dividing the appropriate renewal fee listed in Insurance Article, §2-112,
Annotated Code of Maryland, by 24;
(2) Multiplying the quotient obtained under §A(1) of this regulation by
the number of months for which the certificate of qualification is issued or
renewed; and
(3) Rounding the product obtained under §A(2) of this regulation to the
nearest dollar, with amounts ranging from 1 cent to 50 cents rounded down to the
next lower dollar and amounts ranging from 51 cents to 99 cents rounded up to
the next higher dollar.
B. Fraud Prevention Fee. If the Administration is required to charge a
prorated fraud prevention fee, the Administration shall calculate the amount of
the prorated fee by: (1) Dividing the fraud prevention fee listed in
Insurance Article, §6-203, Annotated Code of Maryland, by 24;
(2) Multiplying the quotient obtained under §B(1) of this regulation by
the number of months for which the certificate is issued or renewed; and
(3) Rounding the product obtained under §B(2) of this regulation to the
nearest dollar, with amounts ranging from 1 cent to 50 cents rounded down to the
next lower dollar and amounts ranging from 51 cents to 99 cents rounded up to
the next higher dollar.
.05 Proration of Continuing Education Credit Hours.
A. General
Continuing Education Requirements. Except as otherwise provided by Insurance
Article, §10-116, Annotated Code of Maryland, the holder of a certificate of
qualification that expires on June 30, 2001, shall complete 16 credit hours of
continuing education before the holder may renew the certificate of
qualification.
B. Proration.
(1) The holder of an interim certificate of qualification issued on July 1,
2001, who has held a certificate of qualification for fewer than 25 consecutive
years, shall successfully complete the following number of credit hours of
continuing education before the holder may renew the certificate of
qualification and receive a certificate of qualification with a 2-year term:
(a) For an interim certificate of qualification issued for a term of 1 year
to 1 years, 8 credit hours;
(b) For an interim certificate of qualification issued for a term of more
than 1 years but not more than 2 years, 12 credit hours;
(c) For an interim certificate of qualification issued for a term of more
than 2 years but not more than 21/2 years, 16 credit hours; or
(d) For an interim certificate of qualification issued for a term of more
than 2 years but not more than 3 years, 20 credit hours.
(2) The holder of an interim certificate of qualification issued on July 1,
2001, who has held a certificate of qualification for 25 or more consecutive
years, beginning on July 1, 2001, and counting back to the year that the
certificate was first obtained, shall successfully complete 50 percent of the
credit hours of continuing education required in §B(1) of this regulation
before the holder may renew the interim certificate of qualification and receive
a certificate of qualification with a 2-year term.
(3) If the interim certificate holder has a certificate for both property
or casualty, or any subdivision of property or casualty, and life or health, or
any subdivision of life or health, in order to renew the interim certificate of
qualification, the interim certificate holder shall successfully complete a
minimum of:
(a) 25 percent of the required credit hours in one or more courses
designated "Property/Casualty"; and
(b) 25 percent of the required credit hours in one or more courses
designated "Life/Health".
(4) National Examination.
(a) If an interim certificate holder receives a passing score on a national
examination on or before the 15th day before the expiration date of the interim
certificate of qualification, the interim certificate holder shall receive the
number of continuing education credit hours that the Commissioner has approved
for the examination towards the credit hours needed to renew the interim
certificate of qualification.
(b) If an interim certificate holder receives a passing score on a national
examination after the 15th day before the expiration date of the interim
certificate of qualification, the interim certificate holder shall receive the
number of continuing education credit hours that the Commissioner has approved
for the examination towards the next certificate renewal.
STEVEN
B. LARSEN
Insurance Commissioner