MIA taking final action on premium funds regulation
The Maryland Insurance Administration (MIA) is moving forward with a new regulation that will prohibit the long-standing practice of commingling agency funds with premium funds. Commingling is defined as holding premium funds and agency operating funds in a common bank account, a practice that is currently subject to strict requirements, including carrier consent.
Based on a member survey we sent out this spring, we learned that a significant percentage of you had concerns about this proposed regulatory change. Based on your feedback, we submitted written comments to the MIA outlining our opposition. However, we learned recently that the MIA plans to approve this regulation as initially proposed in the coming weeks.
On a positive note: As a result of our advocacy efforts, agencies will be given lead time to comply with these changes – the MIA is implementing a Jan. 1, 2018 effective date.