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ROBERT L. EHRLICH, JR., Governor Ch. 194
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(d) A premium finance agreement may provide for additional insurance
premiums to be financed and added to the initial premium finance agreement.
23-307.
(a) A premium finance agreement may require the insured to pay a
cancellation charge if a default in paying an installment results in the cancellation of
an insurance contract listed in the premium finance agreement.
(b) A cancellation charge shall be:
(1) with respect to private passenger automobile or personal fire or
liability insurance, equal to the difference between a delinquency and collection
charge imposed under § 23-306 of this subtitle with respect to the installment in
default and $15; and
(2) with respect to commercial automobile, fire, or liability insurance, 5%
of the installment, not to exceed an amount equal to the difference between a
delinquency and collection charge imposed under § 23-306 of this subtitle with
respect to the installment in default and $100.
(c) If a notice of cancellation is withdrawn [before its effective date] and the
insurance coverage is reinstated, the premium finance agreement may require the
insured to pay a reinstatement charge in the same amount as the cancellation charge
that would have been paid if the cancellation had actually taken effect.
[23-401.1.
(a) Except as provided under subsection (b) of this section, any notice to an
insured shall be sent by personal delivery or first class mail.
(b). With respect to commercial automobile, fire, or liability insurance, and at
the request of the insured, a premium finance company may send any notice to the
insured by personal delivery, first-class mail, electronic mail, or facsimile
transmission.]
23-401.1.
(A) SUBJECT TO SUBSECTION (B) OF THIS SECTION, AT THE OPTION OF THE
INSURED A PREMIUM FINANCE COMPANY MAY SEND ANY NOTICE REQUIRED UNDER
THIS SUBTITLE BY PERSONAL DELIVERY, FIRST-CLASS MAIL, COMMERCIAL
DELIVERY SERVICE, ELECTRONIC MAIL, OR FACSIMILE TRANSMISSION.
(B) A NOTICE DELIVERY METHOD OTHER THAN PERSONAL DELIVERY,
FIRST-CLASS MAIL, OR COMMERCIAL DELIVERY SERVICE MAY BE USED ONLY WITH
THE WRITTEN CONSENT OF THE INSURED.
23-402.
(a) At least 10 days before canceling an insurance contract, a premium finance
company shall deliver or mail to the insured written notice of intent to cancel the
insurance contract unless the defaulted installment payment is received within the
10-day notice period.
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