Maryland Producer Licensing Requirements

Maryland has recently streamlined licensing requirements by eliminating the mandatory pre-license education for Property & Casualty producers effective October 1, 2024.

Basic Eligibility Requirements

To qualify for a Maryland P&C producer license, applicants must:

Exam Tip: Maryland eliminated the 40-hour pre-license education requirement on October 1, 2024. This is a recent change and may be tested on the exam.

The Five-Step Licensing Process

Step 1: Pass the Licensing Exam

Exam Details:

• Exam Type: Property & Casualty
• Questions: 120 total (all scored)
• Time Limit: 150 minutes (2.5 hours)
• Passing Score: 70% (84 correct answers out of 120)
• Cost: $60
• Testing Provider: Prometric
• Scheduling: www.prometric.com/maryland/insurance or call 1-800-610-1174

Content Areas Tested:

1. Insurance regulation (10-15%)
2. General insurance concepts (10-15%)
3. Property and casualty insurance basics (8-12%)
4. Dwelling policies (8-12%)
5. Homeowners policies (12-16%)
6. Personal auto insurance (15-20%)
7. Commercial package and BOP (10-14%)
8. Workers' compensation (6-10%)
9. Other coverages (8-12%)
10. Ethics and professional responsibilities (6-10%)

What to Bring:

• Valid government-issued photo ID (driver's license or passport)
• Prometric confirmation number

Results: Provided immediately upon exam completion

Exam Tip: The Maryland P&C exam consists of 120 questions covering 10 content areas. You need 84 correct answers (70%) to pass. Unlike some states, Maryland doesn't break scores down by national vs. state portions.

Step 2: Submit License Application

Application Method: Complete the NAIC Uniform Individual Application

Application Process:

1. Access the online application through the MIA website
2. Complete all required fields
3. Provide exam passing confirmation
4. Disclose any criminal history or regulatory actions
5. Pay $54 license application fee

Required Information:

• Personal information (SSN, address, contact)
• Exam passing confirmation from Prometric
• Employment history
• Criminal history disclosure (if applicable)
• Regulatory action disclosure (if applicable)
• Citizenship or immigration status

Processing Time: Typically 7-14 business days if all requirements are met

Step 3: Background Check

Maryland conducts background verification:

• Criminal background check
• Review of regulatory history
• Verification of information provided
• No separate fingerprinting appointment required (background check conducted electronically)

Step 4: Receive License

License Issuance:

• Maryland Insurance Administration reviews application and background check
• If approved, license issued electronically
• License accessible through NIPR (National Insurance Producer Registry)
• License card mailed to address on file
• Effective date: Date of issuance

License Includes:

• Producer name and license number
• Lines of authority (Property, Casualty)
• Issue and expiration dates
• Resident or non-resident status

Step 5: Obtain Company Appointments

Before selling insurance, you must:

Get Appointed by Insurance Companies:

• Insurance company appoints you to represent them
• Company submits appointment to MIA
• You can only sell products for companies that appoint you
• Multiple appointments allowed and common

Maintain Appointments:

• Appointment ties your license to specific insurers
• Companies can terminate appointments
• Terminations must be reported to MIA
• Loss of all appointments may result in inactive license status

Exam Tip: Having a producer license does NOT authorize you to sell insurance until you're appointed by an insurance company. License + appointment = ability to transact insurance business.

Resident vs. Non-Resident Licensing

Resident Producer

Requirements:

• Maryland is your primary residence or principal place of business
• Complete full licensing process (exam, application, background check)
• Maintain Maryland as primary licensing state (home state)

Benefits:

• Can obtain non-resident licenses in other states through reciprocity
• Home state for professional licensing
• Easier renewal process

Non-Resident Producer

Requirements:

• Hold active producer license in your home state
• Home state license must be in good standing
• Apply through NAIC Uniform Application as non-resident
• May not need to take Maryland exam if home state has reciprocity

Maryland Reciprocity:

• Maryland has reciprocal agreements with most states
• If your home state doesn't require Maryland exam, Maryland typically waives exam
• Must still complete application and background check
• Pay $54 non-resident license fee

Exam Tip: Reciprocity means if State A waives State B's exam, State B waives State A's exam. Non-residents with active licenses in reciprocal states may skip the Maryland exam.

License Duration and Fees

Initial Licensing Costs

No additional fees for:

• Background check (included in application fee)
• Company appointments (no state fee, though companies may charge)

License Duration

• Initial License: Issued on date of approval
• First Renewal: Varies based on issue date (to align with birth month)
• Subsequent Renewals: Every 2 years

Temporary Licensing

Maryland provides temporary licenses in specific situations:

When Granted

Temporary licenses may be issued when:

• A licensed producer dies or becomes disabled
• To immediate family members or business partners
• To allow continuation of business
• For a limited time while permanent license is obtained

Requirements for Temporary License:

• Application within 90 days of death or disability
• Applicant must be suitable person
• Continuation of business serves public interest
• Limited to 180 days (may be extended)

Limitations:

• Cannot be renewed beyond specified period
• Holder must apply for permanent license
• Subject to same regulations as permanent licensees

Exam Tip: Temporary licenses are valid for 180 days and may be issued to family members after a producer's death or disability. This allows business continuity while obtaining permanent license.