​​American Property Casualty Insurance Association

September 9, 2026

Director of Regulatory Affairs
The Maryland Insurance Administration
200 St. Paul Place, Suite 2700
Baltimore, Maryland 21202

Sent Via electronic Mail to: [email protected] 

The American Property Casualty Insurance Association (APCIA) appreciates the opportunity to provide comments on the Maryland Insurance Administration’s proposed amendments to COMAR 31.03.20 regarding insurance producer licensing application procedures, including the proposed definitions of “Resident,” “Principal Place of Business,” and “Principal Place of Residence.”

Representing nearly 66 percent of the U.S. property casualty insurance market, the American Property Casualty Insurance Association (APCIA) promotes and protects the viability of private competition for the benefit of consumers and insurers. APCIA represents the broadest crosssection of home, auto, and business insurers of any national trade association. APCIA members represent all sizes, structures, and regions, protecting families, communities, and businesses in the U.S. and across the globe.

APCIA is concerned that the proposed amendments do not adequately address how the revised definitions of "Resident" and "Principal Place of Business" apply to insurance producers who work remotely. As drafted, the definition of "Resident" in proposed COMAR 31.03.20.01(D) appears to allow an individual to qualify as a Maryland resident if the producer has either a principal place of residence or a principal place of business in Maryland, provided the other requirements are met.

While APCIA believes this language may technically encompass a Maryland resident producer whose employer is located in another state, the proposal does not clearly address which state's business location governs for licensing purposes when a producer's principal place of residence and principal place of business are located in different states. Specifically, the proposed definition of "Principal Place of Business" as the primary physical location where an individual sells, solicits, negotiates, or transacts insurance business may create uncertainty for remote or hybrid producers.

For example, a producer may permanently reside in Maryland and designate Maryland as their home state while performing insurance activities remotely for an employer headquartered in another jurisdiction. In these circumstances, it is unclear whether the producer's Maryland residence, the employer's out-of-state location, or another work location controls for purposes of determining resident versus nonresident licensing obligations. The proposal also does not address how potential conflicts between states would be resolved or how compliance and enforcement would be administered in these situations.

Several APCIA member companies employ remote producers who could fall within this ambiguity. Accordingly, APCIA respectfully requests that the Maryland Insurance Administration provide additional clarification regarding the treatment of remote and hybrid employees under the proposed definitions, including how residency and principal place of business will be evaluated when those locations are not in the same state. Additional guidance would promote consistent licensing administration, reduce compliance uncertainty, and ensure the regulation accurately reflects modern insurance distribution practices.

Sincerely,

Michael Richmond-Crum

Senior Director, Personal Lines & Counsel American Property Casualty Insurance Association

I A & B - Insurance Agents & Brokers

September 3, 2026

Insurance Regulatory Review Dept
Maryland Insurance Administration
200 St Paul St #2700
Baltimore, MD  21202

SENT VIA EMAIL TO [email protected].

Good morning:

RE: DRAFT REGULATION CHP 20 LICENSE APPLICATION PROCEDURES 31.03.20.04

On behalf of the Insurance Agents & Brokers of Maryland (IA&B), thank you for the opportunity to provide comments on the draft regulation referenced above. IA&B is a professional trade association for independent insurance agents in Maryland, representing nearly 200 member agencies and their 1,800-plus employees, most of whom are licensed insurance producers.

Upon reviewing the draft, we would like to share one concern we believe could negatively impact some of our members. Since the pandemic, the number of employees working remotely for an insurance agency has increased. When people move to another state to follow a spouse or for some other reason, they often keep working for the agency.

As we read it, the definition of “principal place of business” may unwittingly require individuals to switch their “home state” when they have moved to another state but still work exclusively for the Maryland agency as a remote employee. These individuals would be required to get a resident license where they now live, even if they don’t sell in that state, and a non-resident license in Maryland. In addition to the cost, this would force them to secure Continuing Education credits in a state where they don’t sell insurance instead of being able to pursue more Maryland-specific education. Please find below three alternate options for your consideration, which we believe would address the issue.

 Option 1:

E. “Principal place of business” means the primary physical location where an individual or a business entity or an individual who is a sole proprietor sells, solicits, negotiates, or transacts insurance business.

Option 2:

E. “Principal place of business” means the primary physical location where a business entity sells, solicits, negotiates, or transacts insurance business. If the insurance producer is organized as a sole proprietorship, the primary physical location where the sole proprietor sells, solicits, negotiates, or transacts insurance business.

For Option 1 and 2, the following language could also be considered, either for the regulation of for a subsequent bulletin , to help circumscribe what we are trying to achieve:

“For purposes of the “home state” and an insurance producer’s resident versus non-resident license, a domestic remote employee of a Maryland resident insurance producer may elect to keep a Maryland resident individual insurance producer license if the remote employee:

     • works exclusively for the Maryland-domiciled insurance producer while residing in another state, and
      • does not sell, solicit or negotiate insurance to any consumers located in the state where the new principal place of residence is located.”

Option 3:

E. “Principal place of business” means the primary physical location where an individual or business entity sells, solicits, negotiates, or transacts insurance business. Notwithstanding the foregoing, a resident licensed insurance producer who moves to another state may retain Maryland as the producer’s home state provided that:

     a. The resident licensed insurance producer is an individual employed by a Maryland insurance producer,
     b. The resident licensed insurance producer sells, solicits or negotiates exclusively for the Maryland employer, and
     c. The resident licensed insurance producer does not otherwise sell, solicit or negotiate insurance to any consumers located in the state where his or her new principal place of residence is located.

F. “Principal place of residence” means the one physical location where an individual permanently resides over 183 days per year, votes, holds a driver’s license, registers a vehicle, and files taxes."