LAWS OF MARYLAND

(2) A VIOLATION OF THIS SECTION DOES NOT AFFECT THE
VALIDITY OF THE FIRST MORTGAGE OR FIRST DEED OF TRUST SECURING
THE LOAN.

12-312.

(a)  Subject to the provisions of this section, a lender may
collect from the borrower, at the option of the borrower, the
premiums paid for:

(1)  Insurance covering any real or personal property
pledged as security for the loan;

(2)  Accident and health insurance covering any one
borrower, if the insurance does not provide for benefits
exceeding the actual period of disability;

(3)  Credit life insurance:

(i) Covering any one borrower for any loan
under $700 in value or amount; or

(ii) Covering any one or more borrowers for any
loan of $700 or more in value or amount; and

(4)  Involuntary unemployment benefit insurance
covering any one borrower, if the insurance:

(i) Does not provide for benefits exceeding the
actual period of unemployment; and

(ii) Is not contingent upon the purchase of any
other type of insurance permitted under this subtitle.

(b)  (1) A lender may not require that the insurance be
purchased through a particular broker, agent, or insurance
company.

(2)  The lender may:

(i) Assist an applicant or act with him in
forwarding an application to a broker or agent; and

(ii) Receive and transmit premiums or other
identifiable charges for the insurance.

(3)  SUBJECT TO SUBSECTION (D) OF THIS SECTION, AT
[At] the option of the borrower, a lender may be coinsured or
protected to the extent of his interest by a mortgagee clause.

(c)  (1) [The] (I) SUBJECT TO SUBSECTION (D) OF THIS
SECTION, THE amount of property insurance may not exceed either

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Ch. 693