2404

LAWS OF MARYLAND

Ch. 610

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be repealed, amended, or enacted to read as follows: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 - Commercial Law

12-312.

(a) Subject to the provisions of this section, a
lender may collect from the borrower, at the option of the
borrower, the premiums paid for:

(1)  Insurance covering any real or personal
property pledged as security for the loan;

(2)  Accident and health insurance covering any
one borrower, if the insurance does not provide for benefits
exceeding the actual period of disability; and

(3)  Credit life insurance:

(i) Covering any one borrower for any loan
under $700 in value or amount; or

(ii) Covering any one or more borrowers
for any loan of $700 or more in value or amount?; AND

(4)  INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE
COVERING ANY ONE BORROWER, IF THE INSURANCE:

(I)  DOES NOT PROVIDE FOR BENEFITS
EXCEEDING THE ACTUAL PERIOD OF EMPLOYMENT UNEMPLOYMENT; AND

(II)  IS NOT CONTINGENT UPON THE PURCHASE
OF ANY OTHER TYPE OF INSURANCE PERMITTED UNDER THIS
SUBTITLE.

(c) (1) The amount of property insurance may not
exceed either the reasonable value of the property insured
or the originally scheduled total of payments under the loan
contract. The terms and conditions of the property
insurance policy shall be filed with and approved by the
Insurance Commissioner. Property insurance may not be
provided if, to the lender's knowledge, the borrower at the
time the loan is made has valid and collectible insurance
covering the property to be insured and has furnished a loss
payable endorsement for the protection of the lender.

(2) Accident and health insurance shall provide
for:

(i) Benefits not exceeding the then
scheduled unpaid total of payments of the loan;

(ii) A waiting period of at least 14 days;
and