668                                   LAWS OF MARYLAND                           CH. 439

17A.

Any contract of loan made under this article may provide for the

payment of attorney's fees not exceeding fifteen (15) per cent of

the amount due and payable where the contract of the loan is referred

to an attorney not a salaried employee of the licensee for collection,

plus court costs, provided that this Section shall only apply where

such referral occurs no later than six (6) months after the date of

maturity of the contract, as originally scheduled or as deferred;

18.

(a)  Licensees may require a borrower to insure tangible personal
property [except household goods,] when offered as security for a
loan under this article, against any substantial risk [or] of loss,
damage or destruction. The amount of such insurance may not
exceed [a] the reasonable value of such property. The term of the
policy and the conditions thereof shall be reasonable and appropriate
considering the particular loan transaction. The licensee may be a
coinsured or may be protected by a mortgagee clause to the extent
of his interest. [Licensees may require life insurance on the life of
the borrower in an amount not to exceed the amount of the contract.]

(b)  Licensees may require life and accident and health insurance
but only on one obligor, on any one loan contract. The initial amount
of such life insurance shall at no time exceed the total amount repay-
able under the contract of indebtedness; and where an indebtedness is
repayable in substantially equal installments, the amount of insur-
ance shall at no time exceed the scheduled actual amount of unpaid
indebtedness. Accident and health insurance shall provide benefits
not in excess of the aggregate of the periodic scheduled unpaid install-
ments of the loan and the amount of each periodic benefit payment
shall not exceed the total amount payable by a borrower to a licensee
in accordance with the loan contract, divided by the number of
installments, and shall have a waiting period of at least fourteen
(14) days. The premium or identifiable charge for such insurance
shall not be in excess of that filed by the insurance company with
the Insurance Department of Maryland.

(c)  Insurance under this article [Such insurance] must be
written by companies qualified to do business in this State at rates
which do not exceed those filed with the Insurance Department of
Maryland, or [fixed pursuant to law, or by] contained in a current
applicable manual of a recognized insurance rating bureau, the rates
of which have been filed with the Insurance Department of Maryland,
unless such rates are fixed pursuant to law. Licensees may assist an
applicant or act with the applicant in forwarding [such] appli-
cations to a broker or agent and may receive and transmit premiums
or identifiable charges on such insurance [on behalf of the borrower.
Neither the licensee, nor any officer, or employee of a licensee may
receive, either directly or indirectly, any commission or similar com-
pensation in connection with the writing or placing or servicing of
such insurance.] Such premiums or identifiable charges may be
deducted from the proceeds of any loan or may be included as part
of the principal. Any gain or benefit to the licensee, directly or in-
directly, from such insurance, or the sale or provision thereof, shall
not be deemed additional interest or charges, nor a violation of any
section of this article. No licensee shall require the purchasing of such