378                              LAWS OF MARYLAND                      [CH. 141

486F.

(a)    When in connection with a premium finance agreement, a
power of attorney or other authority to cancel any insurance contract
or contracts on behalf of the insured is given to a premium finance
company, the insurance contract or contracts may not be cancelled
by the premium finance company unless such cancellation is effectu-
ated in accordance with the following provisions:

(b)   Not less than ten (10) days written notice shall be mailed to
the insured of the intent of the premium finance company to cancel
the insurance contract or contracts unless the defaulted installment
payment is received within said ten (10) day period.

(c)   After expiration of such ten (10) day period, the premium
finance company may thereafter cancel by mailing to the insurer a
notice of cancellation, specifying the effective date of such cancella-
tion, and the premium finance company shall mail a copy of the can-
cellation notice to the insured at his last known address. No policy
may be cancelled by the holder of a power of attorney because the
delinquency and collection charge as provided in section 486E has not
been paid.

(d)    Upon receipt of a copy of such cancellation notice by the
insurer or insurers, the insurance contract shall be cancelled as if the
aforesaid notice of cancellation had been submitted by the insured
himself, but without requiring the return of the insurance policy.

(e)   All statutory, regulatory, and contractual restrictions provid-
ing that the insured may not cancel his insurance contract unless
notice is given to a governmental agency, mortgagee or other third
party shall apply where cancellation is effected under the provisions
of this section. The insurer, in accordance with said prescribed notice
where it is required to give such notice in behalf of itself or the
insured, shall give notice to such governmental agency, mortgagee
or other person; and it shall determine and calculate the effective
date of cancellation from the day it receives the copy of the notice
of cancellation from the premium finance company.

(f)    Whenever an insurance contract is cancelled in accordance
with this section, the insurer shall return whatever gross unearned
premiums are due under the contract to the premium finance com-
pany effecting the cancellation for the account of the insured or
insureds.

486G.

(a)  Any premium finance company or insurance INSURER, agent
or broker who willfully and knowingly charges a greater amount of
any service charge or other fee as provided in VIOLATES THE PRO-
VISIONS OF ANY SECTION OF this subtitle shall be guilty of a
misdemeanor and shall, in addition to any administrative or civil
penalty otherwise applicable, be subject to a fine of not more than
$1,000 and to OR imprisonment not to exceed one (1) year. , OR
BOTH.

(b)   On and after July 1, 1964, any person who engages in business
as a premium finance company without having registered as pro-
vided in this subtitle shall be guilty of a misdemeanor and shall, in
addition to any other administrative or civil penalty otherwise appli-