Which of the following is NOT a required qualification for a business entity under Maryland insurance rules?

• A. Have a board of directors
• B. Be licensed to transact insurance in Maryland
• C. Maintain a physical office
• D. File annual financial statements

Answer: (A)

In Maryland, the essentials a business entity must show to transact insurance are that it is licensed to do business in the state, maintains a physical office, and files annual financial statements. These requirements establish that the company is authorized, has a real presence in the state, and remains financially accountable to regulators and policyholders. A board of directors, while common for many corporations, is not a universal prerequisite for licensure. Different business forms—such as LLCs or partnerships—may operate without a traditional board, and the insurance department focuses on the licensing status, physical presence, and financial reporting rather than requiring a board structure.