774                             LAWS OF MARYLAND                     [CH. 309

CHAPTER 308
(House Bill 495)

AN ACT to repeal and re-enact, with amendments, Section 486D(a)
of Article 48A of the Annotated Code of Maryland (1968 Replace-
ment Volume), title "Insurance Code," subtitle "30A. Premium
Finance Agreements," providing for the elimination of rebating
of service charges to agents and brokers of premium finance
companies.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 486D(a) of Article 48A of the Annotated Code of Mary-
land (1968 Replacement Volume), title "Insurance Code," subtitle
"30A. Premium Finance Agreements," be and it is hereby repealed
and re-enacted, with amendments, to read as follows:

486D.

(a) The service charge shall be computed on the balance of
premiums due, after subtracting any down payment made by the
insured, from the inception date of the insurance contract, or from
the due date of such premium, disregarding any period of grace
or credit allowed for payment thereof, to and including the date
when the final installment of the premium finance agreement is
payable, at not exceeding one-half of one per cent per one hundred
dollars ($100.00) for each thirty days, charged in advance, upon
the entire amount advanced, payable in installments. In addition
to the above service charge insurance premium finance companies
shall be permitted to charge an initial service charge of not over
ten dollars ($10.00) which need not be refunded upon cancellation
or prepayment [.] , and no part of any charge, initial or otherwise,
shall be paid to any insurance agent, broker, or any employee of
an insurance agent or broker, or to any other person as an induce-
ment to the financing of any insurance policy with the premium
finance company.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1969.

Approved April 23, 1969.

CHAPTER 309
(House Bill 497)

AN ACT to repeal and re-enact, with amendments, Section 175 of
Article 66½ of the Annotated Code of Maryland (1957 Edition
and 1967 Replacement Volume), title "Motor Vehicles," subtitle
"Unsatisfied Claim and Judgment Fund," to change the pro-
cedure for the issuance of checks or drafts in payment of claims
to qualified payees under the Unsatisfied Claim and Judgment
Fund Law.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 175 of Article 66½ of the Annotated Code of Maryland
(1957 Edition and 1967 Replacement Volume), title "Motor Vehi-