Ch. 460                   .                 1993 LAWS OF MARYLAND

FOR the purpose of establishing the conditions under which a motor vehicle service
contract may be issued, sold; or offered for sale; requiring a motor vehicle service
contract to contain certain rights and disclosures; prohibiting a motor vehicle
service contract reimbursement insurance policy from being issued, sold, or offered
for sale unless the policy contains certain disclosures; authorizing the Insurance
Commissioner and the Attorney General to issue certain orders for a violation of
this Act; authorizing the Insurance Commissioner to adopt certain regulations;
defining certain terms; and generally relating to the Motor Vehicle Service Contract
Reimbursement—Insurance Act providing that a certain policy of insurance
constitutes adequate insurance reserves of a provider of services under a mechanical
repair contract; requiring that a purchaser of a mechanical repair contract be
entitled to make a direct claim against a certain insurer under certain
circumstances; requiring the extended warranty or mechanical repair contract to set
forth certain information; altering the definition of a term; providing for the
applicability of this Act; providing that certain dealers have certain obligations; and
generally relating to the regulation of mechanical repair contracts.             

BY adding to                                                                                                     

Article 48A - Insurance Code

Section 698 through 704 to be under the new subtitle "55. Motor Vehicle Service
Contract Reimbursement Insurance Act"

Annotated Code of Maryland

(1991 Replacement Volume and 1992 Supplement)

BY repealing and reenacting, with amendments,
Article - Transportation
Section 15-311.1
Annotated Code of Maryland
(1992 Replacement Volume)

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

Article 48A - Insurance Code

Article - Transportation

55. MOTOR VEHICLE SERVICE CONTRACT REIMBURSEMENT INSURANCE ACT

698.

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.                                   

(B) "MECHANICAL BREAKDOWN INSURANCE" MEANS A POLICY, CONTRACT,
OR AGREEMENT THAT:

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