1312

LAWS OF MARYLAND

Ch. 464

(b)   This section does not apply to[:

(1) Any] ANY commission, dividend, retrospective
rating credit, or other consideration [on insurance, other
than credit life and health insurance, sold under this
subtitle at lawful rates] received by a [Maryland] LICENSEE
OR A licensed INSURANCE agent or broker who is an officer,
director, agent, employee, or affiliate of a licensee[;] ON
INSURANCE SOLD UNDER THIS SUBTITLE IN ACCORDANCE WITH THE
APPLICABLE PROVISIONS OF THE INSURANCE CODE.

[(2) Any commission, dividend, retrospective
rating credit or other consideration received by a Maryland
licensed agent or broker who is an officer, director, agent,
employee, or affiliate of a licensee on credit life and
health insurance sold under this subtitle at lawful rates in
connection with loans or portions of loans not exceeding
$1,200 made by the lender to any person. A commission,
dividend, retrospective rating credit or other consideration
may not be paid to any lender, or agent or broker who is an
officer, director, agent, employee, or affiliate of a
licensee, on credit life and health insurance in connection
with any portion of an outstanding loan or loans exceeding
$1,200 made by the lender to any person. The Insurance
Commissioner shall annually review the premium rates charged
for credit life and health insurance sold in connection with
loans made under this subtitle, and shall appropriately
reduce such premium rates to reflect the savings to insurers
by reason of nonpayment of commissions, dividends,
retrospective rating credits or other considerations for
credit life and health insurance covering loans or portions
of loans in excess of the $1,200 limitation herein.]

12-312.

(c)  (3) The amount of credit life insurance in force
may not exceed the SCHEDULED UNPAID TOTAL OF PAYMENTS OR THE
unpaid principal plus BUT SHALL INCLUDE ALL accrued interest
under the loan contract, WHICHEVER IS GREATER.

SECTION 2. AND BE IT FURTHER ENACTED, That Section(s)
436H(g), of Article 48A — Insurance Code, of the Annotated
Code of Maryland be renumbered to be Section(s) 436H(h).

SECTION 3. AND BE IT FURTHER ENACTED, That section(s)
of the Annotated Code of Maryland be repealed, amended, or
enacted to read as follows:

Article 48A — Insurance Code

436C.

(C) (6) "ACCOUNT" MEANS THE COVERAGE FOR A SINGLE
PLAN OF BENEFITS UNDER ONE PREMIUM PAYMENT METHOD OFFERED TO
A SINGLE CLASS OF BUSINESS BY ONE CREDITOR, WHETHER WRITTEN
ON A GROUP OR INDIVIDUAL BASIS, OR BOTH.