MARVIN MANDEL, Governor

431

THE TYPE OF INSURANCE COVERAGE SHALL BEAR A REASONABLE
RELATION TO THE EXISTING RISK OF LOSS.

(2) THE AMOUNT OF LIFE INSURANCE MAY NOT
EXCEED THE ORIGINALLY SCHEDULED TOTAL OF PAYMENTS UNDER
THE LOAN CONTRACT.

(C) INSURANCE COMPANIES AND RATES.

UNDER THIS SUBTITLE, INSURANCE MAY BE OBTAINED ONLY:

(1)   FROM AN INSURANCE COMPANY QUALIFIED TO DO
BUSINESS IN THE STATE; AND

(2)   AT RATES NOT EXCEEDING THOSE APPROVED BY
THE INSURANCE DIVISION OF THE DEPARTMENT OF LICENSING AND
REGULATION.

(D) DELIVERY OF COPY OF INSURANCE POLICY.

WITHIN 25 DAYS AFTER A LENDER HAS CHARGED FOR ANY
INSURANCE POLICY REQUIRED IN CONNECTION WITH A LOAN, HE
SHALL DELIVER A COPY OF IT TO THE BORROWER.

REVISOR'S NOTE: Subsections (a) through (c) of this
section presently appear as Art. 11,
§196(a)(3). Subsection (d) presently appears
as Art. 11, §197(4).

References to "a loan or advance" are deleted
as unnecessary in light of the definition of
"loan" in §12-301.

In subsection (b) of this section, the present
reference to an existing "hazard" is deleted
as unnecessary in light of the term "risk of
loss."

In subsection (c) of this section, a reference
to rates "approved by" the insurance division
is substituted for "lawfully and acceptably
filed."

In subsection (d) of this section, the word
"purchased" is deleted as unnecessary.

With respect to the use of the term "lender"
in substitution for "licensee," see revisor's
note to §12—301(c).

The only other changes are in style.

42-313. PROHIBITED CHARGES AND TRANSACTIONS; WHEN
CONTRACT VOID.