1334                            LAWS OF MARYLAND                     [CH. 844

Finance Agreements," clarifying the provisions of said subtitle,
modifying service charges, and giving the Commissioner power to
deny, suspend, revoke, or refuse to continue a registration in the
area of premium finance agreements.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 486A through 486G of Article 48A of the Annotated
Code of Maryland (1964 Supplement), title "Insurance Code," sub-
title "30A. Premium Finance Agreements," be and they are hereby
repealed and re-enacted with amendments to read as follows:

486A.

For purposes of this subtitle:

(a)    A premium finance agreement is any agreement by which
an insured or prospective insured promises or agrees to pay to or to
the order of another person an amount advanced or to be advanced
under the agreement to an insurer, agent, or broker in payment of
premiums on insurance contracts [and] or which contains an assign-
ment of or is otherwise secured by the unearned premium or refund
obtainable from the insurer upon cancellation of the insurance con-
tract. Provided, however, any insurance premium financed in con-
nection with a time sale of goods or services or an extension of
credit without charge by an agent or broker shall not be construed
as a premium finance agreement.

(b)    A premium finance company is any person who engages in
the business of entering into or accepting premium finance agree-
ments.

486B.

(a)    Every premium finance company shall register as such with
the Commissioner prior to engaging in business in this state as a
premium finance company. Registration forms shall be of such
design and content as is prescribed by the Commissioner and may
require the filing of the form of premium finance agreement to be
used and the service charges to be applied and disclosure of the
identity, trade names, and the names of officers, managers, owners,
and directors. The Commissioner shall also require and designate
forms for reporting changes in officers, directors, owners, trade
names, and business addresses. The registration shall continue in
effect and shall automatically be renewed upon receipt by the Com-
missioner of the annual registration fee of ten dollars ($10.00) on
or before the first day of July of each year.

(b)    Every premium finance company shall maintain records of
its premium finance transactions and the said records shall be open
to examination by the Commissioner.

(c)    No bank, savings bank, trust company, savings and loan
association, credit union, industrial finance company, small loan
company, or other such organization which is regulated pursuant to
the laws of this state or the United States nor any insurance com-
pany licensed in Maryland which does not engage in the insurance
financing business shall be subject to the provisions of this subtitle
nor shall such organization be required to register or pay the fee
therefor.