Ch. 36

1995 LAWS OF MARYLAND

(V)     EXCEPT IN THE CASE OF THE RENEWAL OF A POLICY AFTER
THE CLOSING OF A LOAN, A PAID RECEIPT FOR THE FULL AMOUNT OF THE
APPLICABLE PREMIUM; AND

(VI)    THE AMOUNT OF COVERAGE.

(2) WITH RESPECT TO A BINDER GIVEN UNDER THIS SUBSECTION, AN
INSURER:

(I)       IF THE BINDER IS TO BE CANCELED, SHALL GIVE THE LENDER
AND THE INSURED CONSUMER BORROWER AT LEAST 10 DAYS' WRITTEN NOTICE
BEFORE THE CANCELLATION; AND

(II)     WITHIN 30 DAYS AFTER THE DATE THE BINDER WAS GIVEN,
SHALL ISSUE A POLICY OF INSURANCE OR PROVIDE THE REQUIRED NOTICE OF
CANCELLATION OF THE BINDER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 379.

In the introductory language of subsection (d)(2) of this section, the reference
to a binder given under "this subsection" is substituted for the former overly
broad reference to a binder given "under this section".

Defined terms: "Health insurance" § 1-101
"Insurance" § 1-101
"Insurer" § 1-101
"Life insurance" § 1-101
"Policy" § 1-101
"Premium" § 1-101
"Property insurance" § 1-101

SUBTITLE 2. LIFE AND HEALTH INSURANCE AND ANNUITIES.
12-201. INSURABLE INTEREST REQUIRED FOR PERSONAL INSURANCE.
(A) IN GENERAL.

(1)      AN INDIVIDUAL OF COMPETENT LEGAL CAPACITY MAY PROCURE
OR EFFECT AN INSURANCE CONTRACT ON THE INDIVIDUAL'S OWN LIFE OR BODY
FOR THE BENEFIT OF ANY PERSON.

(2)      EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION, A
PERSON MAY NOT PROCURE OR CAUSE TO BE PROCURED AN INSURANCE
CONTRACT ON THE LIFE OR BODY OF ANOTHER INDIVIDUAL UNLESS THE BENEFITS
UNDER THE INSURANCE CONTRACT ARE PAYABLE TO:

(I)       THE INDIVIDUAL INSURED;

(II)     THE INDIVIDUAL INSURED'S PERSONAL REPRESENTATIVE; OR

(III)   A PERSON WITH AN INSURABLE INTEREST IN THE INDIVIDUAL
INSURED AT THE TIME THE INSURANCE CONTRACT WAS MADE.

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