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2079
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MARVIN MANDEL, Governor
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AN ACT concerning
Premium Finance Companies - Bonding
FOR the purpose of requiring bonding of every premium
finance company as a prerequisite of doing business
in the State.
BY repealing and reenacting, with amendments,
Article 48A — Insurance Code
Section 486B (a)
Annotated Code of Maryland
(1972 Replacement Volume and 1976 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section 486B(a) of Article 48A - Insurance
Code, of the Annotated Code of Maryland (1972 Replacement
Volume and 1976 Supplement) be and it is hereby repealed
and reenacted, with amendments, to read as follows:
Article 48A - Insurance Code
486B.
(a) (1) Every premium finance company shall
register as such with the Commissioner prior to engaging
in business in this State as a premium finance company,
AND ALSO SHALL FILE A BOND IN THE PENALTY AMOUNT OF
$5,000 $25,000 WITH THE COMMISSIONER, AS PROVIDED IN
§486B(A)(2). Registration forms shall be of such design
and content as is prescribed by the Commissioner and may
require the filing of the form of premium finance
agreement to be used and the service charges to be
applied and disclosure of the identity, trade names, and
the names of officers, managers, owners, and directors.
The Commissioner shall also require and designate forms
for reporting changes in officers, directors, owners,
trade names, and business addresses. The registration
shall continue in effect and shall automatically be
renewed upon receipt by the Commissioner of the annual
registration fee of [ten dollars ($10.00)] $10 on or
before the first day of July of each year, SO LONG AS ANY
OTHER PREREQUISITES TO ENGAGING IN BUSINESS AS A PREMIUM
FINANCE COMPANY ARE MET BY THE REGISTRANT.
(2) EVERY PREMIUM FINANCE COMPANY, AS AN
ESSENTIAL PREREQUISITE TO ENGAGING IN BUSINESS IN THIS
STATE AS A PREMIUM FINANCE COMPANY, SHALL FILE WITH THE
COMMISSIONER A BOND TO THE STATE OF MARYLAND IN THE
PENALTY AMOUNT OF $5,000 $25,000. THE BOND MUST BE
EXECUTED BY AN AUTHORIZED SURETY INSURER AND CONDITIONED
THAT THE PREMIUM FINANCE COMPANY WILL TRULY ACCOUNT FOR
AND PAY OVER TO THE PERSON OR ENTITY ENTITLED TO RECEIVE
THE SAME ALL MONEY BELONGING TO THE PERSON OR ENTITY
WHICH MAY COME INTO ITS POSSESSION AS A PREMIUM FINANCE
COMPANY, INCLUDING BUT NOT LIMITED TO UNEARNED PREMIUMS
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