WILLIAM DONALD SCHAEFER, Governor Ch. 636

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

486G.

(a)  When in connection with a premium finance agreement, a
power of attorney or other authority to cancel any insurance
contract or contracts on behalf of the insured is given to a
premium finance company, the insurance contract or contracts may
not be cancelled by the premium finance company unless such
cancellation is effectuated in accordance with the following
provisions:

(b)  Not less than ten (10) days' written notice shall be
mailed to the insured of the intent of the premium finance
company to cancel the insurance contract or contracts unless the
defaulted installment payment is received within said ten (10)
day period.

(c)  After expiration of such ten (10) day period, the
premium finance company may thereafter cancel by mailing to the
insurer a notice of cancellation, specifying the effective date
of such cancellation, and the premium finance company shall mail
a copy of the cancellation notice to the insured at his last
known address. No policy may be cancelled by the holder of a
power of attorney because the delinquency and collection charge
as provided in § 486F has not been paid.

(d)  Upon receipt of a copy of such cancellation notice by
the insurer or insurers WITHIN THIRTY (30) CALENDAR DAYS OF THE
DATE OF THE NOTICE REQUIRED BY SUBSECTION (B) (1) IF THE INSURER
RECEIVES A COPY OF A CANCELLATION NOTICE ISSUED UNDER SUBSECTION
(C) OF THIS SECTION WITHIN 30 DAYS AFTER THE EFFECTIVE DATE OF
CANCELLATION SPECIFIED IN THE NOTICE, the insurance contract
shall be cancelled effective as of the date specified in the
notice.

(2)  IF THE INSURER RECEIVES A COPY OF A CANCELLATION
NOTICE ISSUED UNDER SUBSECTION (C) OF THIS SECTION MORE THAN 30
DAYS AFTER THE EFFECTIVE DATE OF CANCELLATION SPECIFIED IN THE
NOTICE, THE INSURANCE CONTRACT SHALL BE CANCELLED EFFECTIVE ON
THE DATE THE NOTICE IS RECEIVED BY THE INSURER.

(3)  THE CANCELLATIONS MADE UNDER THIS SUBSECTION
SHALL BE MADE as if the aforesaid notice of cancellation had been
submitted by the insured himself, but without requiring the
return of the insurance policy.

(e)  All statutory, regulatory, and contractual restrictions
providing that the insured may not cancel his insurance contract
unless notice is given to a governmental agency, mortgagee or

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