HARRY HUGHES, Governor                               2779

PAY. REMUNERATION OF AN EMPLOYEE ON ACCOUNT OF SICKNESS OR
ACCIDENT OF THE EMPLOYEE SHALL BE PAID AND TREATED AS SICK
PAY AND NOT AS CONTINUATION OF SALARY.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1981.

Approved May 19, 1981.

CHAPTER 745

(Senate Bill 1071)

AN ACT concerning

Insurance - Finance Charges and Service Fees

FOR the purpose of altering the finance charge rate on a
premium loan and the amount of the initial service fee
for actual expenses that may be charged by an insurance
company.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 486D (a)

Annotated Code of Maryland

(1979 Replacement Volume and 1980 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be repealed, amended, or enacted to read as follows: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 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 [one] 1.25 1.15 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] $20 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.