2010 Maryland Code
INSURANCE
TITLE 3 - KINDS OF INSURERS
Subtitle 3 - Surplus Lines Insurance
Section 3-320 - Receipt of premium by surplus lines broker.

§ 3-320. Receipt of premium by surplus lines broker.
 

(a)  Unauthorized insurer deemed to have received premium.- In any question that arises under the coverage between an unauthorized insurer and the insured, the unauthorized insurer is deemed to have received the premium due it for surplus lines insurance if: 

(1) the unauthorized insurer has assumed a surplus lines risk under this subtitle; and 

(2) the surplus lines broker who placed the surplus lines insurance has received the premium for the surplus lines insurance. 

(b)  Liability for losses and unearned premiums.- An unauthorized insurer described in subsection (a) of this section is liable to the insured for losses covered by the surplus lines insurance and, on cancellation, for unearned premiums that may become payable to the insured, whether or not the surplus lines broker is indebted to the unauthorized insurer for the surplus lines insurance or for any other reason. 

(c)  Rights of insurer and broker not affected.- This section does not affect rights between the unauthorized insurer and the surplus lines broker. 

(d)  Insurer subject to section.- Each unauthorized insurer that assumes a surplus lines direct risk under this subtitle subjects itself to the terms of this section. 
 

[An. Code 1957, art. 48A, § 192; 1995, ch. 36.]