HARRY HUGHES, Governor                             3203

FOR the purpose of altering the finance charge on insurance
premium loans advanced; and making stylistic changes.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 486D(a)

Annotated Code of Maryland

(1979 Replacement Volume and 1979 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be repealed, amended, or enacted to read as follows: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

486D.

(a) The 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] THE 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. Insurance premium finance companies may charge an
initial service fee for actual expenses not to exceed $15
which may not be refunded upon cancellation or repayment,
and no part of any 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, 1980.

Approved May 27, 1980.

CHAPTER 873

(House Bill 1969)

AN ACT concerning

Harford County - Sunday Activities

FOR the purpose of excepting certain Sundays of each year
from the provisions of law concerning Sunday business
activities in Harford County; providing that a person