Ch. 11                                          1996 LAWS OF MARYLAND

"Insurance" § 1-101
"Life insurance" § 1-101
"Policy" § 1-101

13-106. AMOUNTS OF INSURANCE.

(A)     INITIAL AMOUNT.

(1) THE INITIAL AMOUNT OF CREDIT LIFE INSURANCE MAY NOT
EXCEED THE TOTAL AMOUNT REPAYABLE UNDER THE CONTRACT OF
INDEBTEDNESS.

(2). NOTWITHSTANDING ANY OTHER PROVISION OF THIS TITLE,
INSURANCE ON AN AGRICULTURAL CREDIT TRANSACTION COMMITMENT NOT
EXCEEDING A TERM OF 1 YEAR MAY BE WRITTEN UP TO THE AMOUNT OF THE LOAN
COMMITMENT ON A NONDECREASING OR LEVEL TERM PLAN.

(3) NOTWITHSTANDING ANY OTHER PROVISION OF THE CODE,
INSURANCE ON AN EDUCATIONAL CREDIT TRANSACTION COMMITMENT MAY BE
WRITTEN FOR THE AMOUNT OF THAT PART OF THE COMMITMENT THAT HAS NOT
BEEN ADVANCED BY THE CREDITOR.                                            

(B)      PERIODIC INDEMNITY AMOUNT.

(1)      THE TOTAL AMOUNT OF PERIODIC INDEMNITY PAYABLE BY CREDIT
HEALTH INSURANCE IN THE EVENT OF DISABILITY MAY NOT EXCEED THE
AGGREGATE OF THE PERIODIC SCHEDULED UNPAID INSTALLMENTS OF THE
INDEBTEDNESS.

(2)      THE AMOUNT OF EACH PERIODIC INDEMNITY PAYMENT UNDER A
POLICY OF CREDIT HEALTH INSURANCE MAY NOT EXCEED THE ORIGINAL
INDEBTEDNESS DIVIDED BY THE NUMBER OF PERIODIC INSTALLMENTS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 436E.

In subsection (a)(3) of this section, the reference to "any other provision of
the Code" is substituted for the former reference to "this subtitle or any other
section" as a more precise statement of the scope of the exception.

In subsection (b)(1) of this section, the former reference to disability "as
defined in the policy" is deleted as unnecessary in light of the defined term
"credit health insurance".

Defined terms: "Credit health insurance" § 13-101
"Credit life insurance" § 13-101
"Creditor" § 13-101         

"Indebtedness" § 13-101
"Insurance" § 1-101
"Policy" § 1-101

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