Ch. 693

LAWS OF MARYLAND

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

(E) (1) IN THIS SUBSECTION, "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".

(2) (I) A CREDIT GRANTOR MAY NOT REQUIRE A BORROWER,
UNDER AS A CONDITION TO RECEIVING OR MAINTAINING A LOAN SECURED
BY A FIRST LIEN, TO PROVIDE OR PURCHASE PROPERTY INSURANCE
COVERAGE AGAINST RISKS TO ANY IMPROVEMENTS ON ANY REAL PROPERTY
IN AN AMOUNT EXCEEDING THE REPLACEMENT VALUE OF THE IMPROVEMENTS
ON THE REAL PROPERTY.

(II) THE REPLACEMENT VALUE OF THE IMPROVEMENTS
ON THE REAL PROPERTY SUBJECT TO THIS SECTION SHALL BE DETERMINED
BY THE INSURER SELECTED BY THE BORROWER TO PROVIDE THE PROPERTY
INSURANCE COVERAGE. IN DETERMINING THE REPLACEMENT VALUE OF THE
IMPROVEMENTS ON ANY REAL PROPERTY, THE LENDER MAY:

1.  ACCEPT THE VALUE PLACED ON THE
IMPROVEMENTS BY THE INSURER; OR

2.  USE THE VALUE PLACED ON THE
IMPROVEMENTS THAT IS DETERMINED BY THE LENDER'S APPRAISAL OF THE
REAL PROPERTY.

(2) (3) A VIOLATION OF THIS SUBSECTION SHALL ENTITLE
THE BORROWER TO:

(I)  SEEK AN INJUNCTION TO PROHIBIT THE CREDIT
GRANTOR WHO HAS ENGAGED OR IS ENGAGING IN THE VIOLATION FROM
CONTINUING OR ENGAGING IN THE VIOLATION;

(II)  REASONABLE ATTORNEY'S FEES; AND

(III)  DAMAGES DIRECTLY RESULTING FROM THE
VIOLATION.

(3) (4) A VIOLATION OF THIS SUBSECTION DOES NOT
AFFECT THE VALIDITY OF THE FIRST LIEN SECURING THE LOAN.

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

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