Ch. 673

LAWS OF MARYLAND

(4)  A PROVISION THAT THE BINDER MAY NOT BE CANCELED
WITHIN THE TERM OF THE BINDER UNLESS THE CREDIT GRANTOR AND THE
INSURED CONSUMER BORROWER RECEIVE WRITTEN NOTICE OF THE
CANCELLATION AT LEAST 10 DAYS PRIOR TO THE CANCELLATION; AND

(5)  EXCEPT IN THE CASE OF THE RENEWAL OF A POLICY
SUBSEQUENT TO THE CLOSING OF THE LOAN, A PAID RECEIPT FOR THE
FULL AMOUNT OF THE APPLICABLE PREMIUM; AND

(6) THE AMOUNT OF COVERAGE.

(D) THIS SECTION DOES NOT PROHIBIT A CREDIT GRANTOR FROM
REFUSING TO HONOR A BINDER IN CASES WHERE:

(1)  THE CREDIT GRANTOR RECEIVES NOTICE OF THE
CANCELLATION OF THE BINDER BY THE INSURER; OR

(2)  AT THE EXPIRATION OF 45 30 DAYS OF THE DATE THE
BINDER WAS GIVEN, THE INSURER HAS FAILED TO ISSUE THE POLICY OF
INSURANCE.

12-1007.

(a)  In connection with a loan to a consumer borrower:

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

(2)   [The] SUBJECT TO § 12-1007.1 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 with respect to a loan.

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

12-1007.1.

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

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