WILLIAM DONALD SCHAEFER, Governor

Ch. 693

[(e)] (F) Within 25 days after a lender has charged for any
insurance in connection with a loan, he shall deliver a copy of
the appropriate policy or certificate to the borrower.

12-410.

(a)  Subject to the provisions of this section, a lender may
require a borrower to insure and may collect from him the
premiums paid for insurance on:

(1)  Any real property securing the loan;

(2)  The life of any person obligated on the loan; and

(3)  The title of any real property securing the loan.

(b)  Subject to the provisions of this section, the licensee
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.

[(b-1)] (C) Subject to the provisions of subsections [(c)]
(D), [(d)] (E), and [(e)] (F) of this section, a lender may
collect from a borrower, at the option of the borrower, the
premiums paid for involuntary unemployment benefit insurance
covering the borrower.

(1)  "Involuntary unemployment benefit insurance"
means any insurance designed to pay a lender the monthly payment
obligation of a borrower who has suffered an involuntary loss of
employment.

(2)  The availability of involuntary unemployment
benefit insurance to a borrower may not be made contingent on the
purchase of any other type of insurance permitted under this
section.

[(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.]

(D) (1) (I) IN THIS PARAGRAPH, "PROPERTY INSURANCE
COVERAGE" MEANS PROPERTY INSURANCE AGAINST LOSSES CAUSED BY
PERILS THAT COMMONLY ARE COVERED IN INSURANCE POLICIES DESCRIBED
WITH TERMS SIMILAR TO "STANDARD FIRE" OR "STANDARD FIRE WITH
EXTENDED COVERAGE".

(II) A LENDER MAY NOT REQUIRE A BORROWER, UNDER
AS A CONDITION TO RECEIVING OR MAINTAINING A SECONDARY MORTGAGE
LOAN, TO PROVIDE OR PURCHASE PROPERTY INSURANCE COVERAGE AGAINST
RISKS TO ANY IMPROVEMENTS ON ANY REAL PROPERTY IN AN AMOUNT

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