Ch. 637                                       LAWS OF MARYLAND

other third party shall apply where cancellation is effected
under the provisions of this section. The insurer, in accordance
with said prescribed notice where it is required to give such
notice in behalf of itself or the insured, shall give notice to
such governmental agency, mortgagee or other person; and it shall
determine and calculate the effective date of cancellation from
the day it receives the copy of the notice of cancellation from
the premium finance company.

(f) Whenever an insurance contract is cancelled in
accordance with this section, the insurer shall return whatever
gross unearned premiums are due under the contract, exclusive of
agents' earned commissions, to the premium finance company for
the account of the insured or insureds within a reasonable time
not to exceed 60 days after the receipt by the insurer of the
notice of cancellation, or after the completion of any payroll
audit necessary to determine the amount of premium earned while
the policy was in force. The audit shall be performed within 60
days after the receipt by the insurer of the notice of
cancellation.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989.

Approved May 25, 1989.

CHAPTER 637

(House Bill 65)

AN ACT concerning

Income Tax - Overseas Military Pay - Deduction

FOR the purpose of providing, for purposes of determining
Maryland taxable income, a subtraction from federal adjusted
gross income for certain of a certain portion of military
pay received by certain military personnel; making part of
this Act contingent on the passage of another Act; and
providing for the application of this Act.

BY repealing and reenacting, without amendments,

Article - Tax - General
Section 10-207(a)
Annotated Code of Maryland
(1988 Volume)

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