WILLIAM DONALD SCHAEFER, Governor                   Ch. 673

12-909.

(a)  In connection with a plan established for a consumer
borrower:

(1)  The purchase of credit life, credit accident and
health, credit disability, involuntary unemployment benefit, and
similar coverages is optional with the consumer borrower; and

(2)   [The] SUBJECT TO § 12-909.1 OF THIS SUBTITLE, THE
purchase of property insurance, title insurance, and credit loss
insurance from an insurer of the borrower's choice may be
required if the loan is secured.

(b)  The provisions of this section do not alter or modify
rights, privileges, or restrictions heretofore existing between
the credit grantor and a borrower other than a consumer borrower.

(c)  Premiums for any insurance coverage permitted by this
section are not interest or finance charges under the plan.

(d)  The offering and placement of insurance under this
section shall be subject to the provisions of the Maryland
Insurance Code.

12-909.1.

(A)  IN THIS SECTION, "BINDER" MEANS A BINDER OR OTHER
TEMPORARY CONTRACT OF INSURANCE AS PROVIDED UNDER ARTICLE 48A, §
379 OF THE CODE.

(B)  A CREDIT GRANTOR SHALL COMPLY WITH THIS SECTION IF THE
CREDIT GRANTOR:

(1)  MAKES ANY LOAN SECURED BY A FIRST LIEN ON ANY
INTEREST IN OWNER-OCCUPIED RESIDENTIAL REAL PROPERTY; AND

(2)  AS A CONDITION OF MAKING THE LOAN, REQUIRES THE

CONSUMER BORROWER TO PURCHASE PROPERTY INSURANCE, TITLE

INSURANCE, OR CREDIT LOSS INSURANCE.

(C)  A CREDIT GRANTOR WHO MAKES A LOAN SUBJECT TO THIS
SECTION SHALL ACCEPT AS EVIDENCE OF INSURANCE A WRITTEN BINDER
ISSUED BY ANY AUTHORIZED INSURER OR ITS AGENT IF THE BINDER
INCLUDES OR IS ACCOMPANIED BY:

(1)  THE NAME AND ADDRESS OF THE INSURED CONSUMER
BORROWER;

(2)  THE NAME AND ADDRESS. OF THE CREDIT GRANTOR;

(3)  A DESCRIPTION OF THE INSURED RESIDENTIAL REAL
PROPERTY;

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