Ch. 460

1993 LAWS OF MARYLAND

(I) THAT THE: OBLIGATIONS OF THE SERVICE CONTRACT
PROVIDER TO THE SERVICE CONTRACT HOLDER ARE COVERED UNDER THE MOTOR
VEHICLE CONTRACT REIMBURSEMENT INSURANCE POLICY;

(II) THE NAME AND ADDRESS OF THE ISSUER OF THE MOTOR
VEHICLE SERVICE CONTRACT REIMBURSEMENT INSURANCE POLICY; AND

(III) THAT THE SERVICE CONTRACT HOLDER IS ENTITLED TO MAKE
A DIRECT CLAIM AGAINST THE ISSUER OF THE MOTOR VEHICLE SERVICE
CONTRACT REIMBURSEMENT INSURANCE POLICY UPON THE FAILURE OF THE
SERVICE CONTRACT PROVIDER TO PAY ANY CLAIM OR REFUND THE
CONSIDERATION PAID BY THE SERVICE CONTRACT HOLDER WITHIN 60 DAYS AFTER
PROOF IS FILED WITH THE SERVICE CONTRACT PROVIDER.

700.

A MOTOR VEHICLE SERVICE CONTRACT REIMBURSEMENT INSURANCE POLICY
MAY NOT BE ISSUED, SOLD, OR OFFERED FOR SALE IN THIS STATE UNLESS THE
POLICY CONSPICUOUSLY STATES THAT THE ISSUER OF THE POLICY WILL PAY ON
BEHALF OF THE SERVICE CONTRACT PROVIDER ALL SUMS WHICH THE SERVICE
CONTRACT PROVIDER IS LEGALLY OBLIGATED TO PAY IN THE PERFORMANCE OF
ITS CONTRACTUAL OBLIGATIONS; UNDER ANY MOTOR VEHICLE SERVICE CONTRACT
ISSUED OR SOLD BY THE SERVICE CONTRACT PROVIDER.

701.                                 

(A) THE COMMISSIONER MAY ISSUE AN ORDER AND NOTICE OF HEARING
INSTRUCTING A SERVICE CONTRACT PROVIDER TO CEASE AND DESIST FROM
SELLING OR OFFERING FOR SALE MOTOR VEHICLE SERVICE CONTRACTS IF THE
COMMISSIONER DETERMINES THAT THE PROVIDER HAS FAILED TO COMPLY WITH
THE PROVISIONS OF THIS SUBTITLE.

(B) (1) UPON THE FAILURE OF A SERVICE CONTRACT PROVIDER TO OBEY A
CEASE AND DESIST ORDER ISSUED BY THE COMMISSIONER, THE COMMISSIONER
MAY GIVE NOTICE IN WRITING OF THE FAILURE TO THE ATTORNEY GENERAL.

(2) THE ATTORNEY GENERAL MAY COMMENCE AN ACTION AGAINST
THE SERVICE CONTRACT PROVIDER TO ENJOIN THE SERVICE CONTRACT PROVIDER
FROM SELLING OR OFFERING FOR SALE MOTOR VEHICLE SERVICE CONTRACTS
UNTIL THE SERVICE CONTRACT PROVIDER COMPLIES WITH THE PROVISIONS OF
THIS SUBTITLE.                                 

702.

THE COMMISSIONER MAY ADOPT REGULATIONS TO CARRY OUT THE
PROVISIONS OF THIS SUBTITLE, INCLUDING REGULATIONS TO ESTABLISH MINIMUM
STANDARDS FOR DISCLOSURE OF THE COVERAGE LIMITATIONS AND EXCLUSIONS
OF MOTOR VEHICLE SERVICE CONTRACTS.

703.

THE PROVISIONS OF THIS SUBTITLE DO NOT APPLY TO MOTOR VEHICLE
SERVICE CONTRACTS ISSUED BY A MOTOR VEHICLE MANUFACTURER OR
IMPORTER.

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