SPIRO T. AGNEW, Governor                      1305

CHAPTER 647
(House Bill 171)

AN ACT to add new Section 240C to Article 48A of the Annotated
Code of Maryland (1964 Replacement Volume), title "Insurance,"
subtitle "Unfair Trade Practices," to follow immediately after
Section 240B thereof, to declare unlawful the practice PRACTICES
of charging credit life OR DISABILITY insurance PREMIUMS
without the express written consent of the debtor AND OF COM-
PUTING A SERVICE CHARGE IN A RETAIL CREDIT AC-
COUNT UPON PREMIUMS DUE UNDER A POLICY OF
CREDIT LIFE OR DISABILITY INSURANCE.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Section 240C be and it is hereby added to Article 48A of
the Annotated Code of Maryland (1964 Replacement Volume), title
"Insurance," subtitle "Unfair Trade Practices," to follow immedi-
ately after Section 240B thereof, and to read as follows:

240C.

(a) No person shall make, issue or charge, or cause to be made,
issued or charged to any individual, any type of credit life OR
DISABILITY insurance PREMIUM without the express written
consent of that individual.

(b) For the purposes of this section, "credit life insurance"

means any type of insurance which will pay all or part of an indi-

vidual's debt upon his death.

(b)    THE COMPUTATION OF A SERVICE CHARGE IN
A RETAIL CREDIT ACCOUNT SHALL NOT BE BASED
IN ANY PART UPON THE PREMIUMS DUE UNDER A
POLICY OF CREDIT LIFE OR DISABILITY INSURANCE.
FOR THE PURPOSES OF THIS SUBSECTION, THE TERMS
"SERVICE CHARGE" AND "RETAIL CREDIT ACCOUNT"
SHALL HAVE THE SAME DEFINITION GIVEN THOSE
TERMS IN SECTIONS 153A(e) AND 153A(h), RESPEC-
TIVELY, OF ARTICLE 83 OF THIS CODE (1957 EDITION,
AS AMENDED).

(c)    FOR THE PURPOSES OF THIS SECTION, "CREDIT
LIFE OR DISABILITY INSURANCE" MEANS ANY TYPE
OF INSURANCE WHICH WILL PAY ALL OR PART OF
AN INDIVIDUAL'S DEBT UPON HIS DEATH OR DIS-
ABILITY.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1968.

Approved May 7, 1968.

CHAPTER 648
(House Bill 183)

AN ACT to add new Sections 718 and 719 SECTION 54A to Article
43 of the Annotated Code of Maryland (1965 Replacement