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706
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LAWS OF MARYLAND
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Ch. 138
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(3) The title of any real property securing the loan.
(B) SUBJECT TO THE PROVISIONS OF THIS SECTION, THE LENDER
LICENSEE MUST OFFER TO THE BORROWER TO COLLECT PREMIUMS FOR
ACCIDENT AND HEALTH INSURANCE COVERING ANY BORROWER OBLIGATED ON
THE LOAN. MAY COLLECT FROM THE BORROWER, AT THE BORROWER'S
OPTION, THE PREMIUMS PAID FOR ACCIDENT AND HEALTH INSURANCE
COVERING ANY ONE BORROWER OBLIGATED ON THE LOAN. THE INSURANCE
MAY NOT PROVIDE BENEFITS EXCEEDING THE ACTUAL PERIOD OF
DISABILITY. A BORROWER OBTAINING THIS INSURANCE HAS 14 DAYS TO
WITHDRAW FROM THE INSURANCE COVERAGE.
[(b)] (C) (1) The amount of property insurance may not
exceed the reasonable value of the real property insured, and the
type of insurance coverage shall bear a reasonable relation to
the existing risk of loss.
(2) The amount of life insurance may not exceed the
total original amount payable under the loan contract.
(3) THE ACCIDENT AND HEALTH INSURANCE SHALL PROVIDE:
(I) BENEFITS NOT EXCEEDING THE THEN SCHEDULED
UNPAID TOTAL OF PAYMENTS OF THE LOAN; AND
(II) A WAITING PERIOD FOR THE COLLECTION OF
BENEFITS OF AT LEAST 14 DAYS; AND
(II) (III) PERIODIC BENEFITS, THE AMOUNT OF
EACH WHICH MAY NOT EXCEED THE ORIGINALLY SCHEDULED TOTAL OF
PAYMENTS UNDER THE LOAN CONTRACT, DIVIDED BY THE NUMBER OF
INSTALLMENTS.
[(c)] (D) Under this subtitle, insurance may be obtained
only:
(1) From an insurance company qualified to do
business in the State; and
(2) At rates not exceeding those approved by the
insurance division of the department of licensing and regulation.
[(d)] (E) A lender may not require the borrower to purchase
any insurance from him.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1983.
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Approved May 10, 1983.
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