982                                 Laws of Maryland                         Ch. 416

436D. Forms of Credit Life Insurance and Credit Health Insurance.

Credit life insurance and credit health insurance shall be issued
only in the following forms:

(1)    Individual policies of life insurance issued to debtors on the
term plan.

(2)    Individual policies of health insurance to insure debtors on
a term plan or disability benefit provisions in individual policies of
credit life insurance.

(3)    Group policies of life insurance issued for delivery to cred-
itors providing insurance upon the lives of debtors on the term plan.

(4) Group policies of health insurance issued for delivery to
creditors on a term plan insuring debtors or disability benefit provi-
sions in group credit life insurance policies to provide such coverage.

436E. Amount of Credit Life Insurance and Credit Health
Insurance.

(a)     (1) The initial amount of credit life insurance shall not
exceed the total amount repayable under the contract of indebtedness.

(2)    Notwithstanding any other provisions of this subtitle, in-
surance on agricultural credit transaction commitments not exceed-
ing one year in duration may be written up to the amount of the loan
commitment on a non-decreasing or level term plan.

(3)    Notwithstanding any other provisions of this subtitle or any
other section, insurance on educational credit transaction commit-
ments may be written for the amount of the portion of the commit-
ment that has not been advanced by the creditor.

(b)    The total amount of periodic indemnity payable by credit
health insurance in the event of disability as defined in the policy
shall not exceed the aggregate of the periodic scheduled unpaid in-
stallments of the indebtedness; and the amount of each periodic
indemnity payment shall not exceed the original indebtedness divided
by the number of periodic installments.

436F. Term of Credit Life Insurance and, Credit Health Insurance.

The term of any credit life insurance or credit health insurance,
subject to acceptance by the insurer, shall commence on the date the
debtor becomes obligated to the creditor, except that, if a group policy
provides coverage with respect to existing obligations, the insurance
on a debtor with respect to the indebtedness shall commence on the
effective date of the policy. If evidence of insurability is required
and such evidence is furnished more than thirty (30) days after the
date the debtor becomes obligated to the creditor, the term, of the
insurance may commence on the date on which the insurance com-
pany determines the evidence to be satisfactory, and in such event
there shall be an appropriate refund or adjustment of any charge to
the debtor for insurance. The term of the insurance shall not extend
more than fifteen (15) days beyond the scheduled maturity date of
the indebtedness except when extended without additional cost to
the debtor. If the indebtedness is discharged because of renewal or
refinancing prior to the scheduled maturity date, the insurance in