The purpose of licensing insurance agents is to:
Limit the number of agents who do business within Maryland
Demonstrate that the agent is qualified to act on behalf of insurers in Maryland
Monitor insurance sales activity in Maryland
Regulate rates to prevent unfair discrimination among insureds
Insurance licensing ensures agents meet professional standards:
Licensure demonstrates qualifications (B) to act ethically and competently on behalf of insurers.
It does not limit the number of agents (A).
Sales activity monitoring (C) and rate regulation (D) are separate regulatory functions.
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