446

LAWS OF MARYLAND

[Ch. 49

(B)   LIMITATION ON INSURANCE COVERAGE.

(1)   THE AMOUNT OF PROPERTY INSURANCE MAY NOT
EXCEED THE REASONABLE VALUE OF THE REAL PROPERTY INSURED,
AND 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 TOTAL ORIGINAL AMOUNT PAYABLE 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)   PROHIBITED PRACTICE.

A LENDER MAY NOT REQUIRE THE BORROWER TO PURCHASE
ANY INSURANCE FROM HIM.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 66,
§62(a) (2).

In subsection      (b) (1) of     this section, the

reference to "hazard" is deleted as

unnecessary in light of the term "risk of
loss."

In subsection (c) of this section, item (2) is
added to reflect the present insurance law and
to conform to the similar provisions contained
in Subtitles 2 and 3 of this title; cf., §§
12-209 and 12-312. See Art. 48A, Subtitle
"Rate and Rating Organizations."

In subsection (d) of this section, the word
"lender" is substituted for "licensee" to
conform the usage to that found elsewhere in
present §62(a)(2) and in this subtitle.

The only other changes are in style.

12-411. PROHIBITED CHARGES.

A LENDER MAY NOT DIRECTLY OR INDIRECTLY, CONTRACT
FOR, CHARGE, OR RECEIVE, ANY INTEREST, DISCOUNT, FEE,