HARRY HUGHES, Governor

1953

Article 48A — Insurance Code

Section 486C(b) and 486D(a)

Annotated Code of Maryland

(1972 Replacement Volume and 1978 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 48A - Insurance Code

486C.

(b) The maximum rates or charges set forth in § 486D
[ (hereinafter called service charges) ] shall be inclusive of
all interest, fees and charges incident to the premium
finance agreement and for the extension of credit provided
thereby. Provided, however, that delinquency, collection,
and cancellation or reinstatement charges may be made in
accordance with limitations of § 486E.

486D.

fa) The [service] FINANCE charge shall be computed on
the entire premium loan advanced, after subtracting any down
payment on the premium loan made by the insured, from the
inception date of the insurance contract, or from the due
date of such premium, disregarding any period of grace or
credit allowed for payment thereof, to and including the
date when the final installment under the premium finance
agreement is payable, at a rate not exceeding three quarters
of one percent for each thirty days, charged in advance. [In
addition to the above service charge, insurance premium
finance companies shall be permitted to charge an initial
service charge of not over $10 which need] INSURANCE PREMIUM
FINANCE COMPANIES MAY CHARGE AN INITIAL SERVICE CHARGE FEE
FOR ACTUAL EXPENSES NOT TO EXCEED $15 WHICH MAY not be
refunded upon cancellation or repayment, and no part of any
chargo FEE, initial or otherwise, shall be paid to any
insurance agent, broker, or any employee of an insurance
agent or broker, or to any person as an inducement to the
financing of any insurance policy with the premium finance
company.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.

Approved May 29, 1979.

CHAPTER 698
(Senate Bill 652)