PARRIS N. GLENDENING, Governor

Ch. 11

13-107. TERM OF INSURANCE.

(A)     COMMENCEMENT — IN GENERAL.

(1)      EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, THE
TERM OF CREDIT LIFE INSURANCE, CREDIT HEALTH INSURANCE, OR CREDIT
INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE SUBJECT TO ACCEPTANCE BY
THE INSURER, BEGINS ON THE DATE THAT THE DEBTOR BECOMES OBLIGATED TO
THE CREDITOR.

(2)      IF A GROUP POLICY PROVIDES COVERAGE FOR AN EXISTING
OBLIGATION, THE CREDIT LIFE INSURANCE, CREDIT HEALTH INSURANCE, OR
CREDIT INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE BEGINS ON THE
EFFECTIVE DATE OF THE GROUP POLICY.

(B)     SAME — EVIDENCE OF INSURABILITY.

IF AN INSURER REQUIRES EVIDENCE OF INSURABILITY AND THE EVIDENCE IS
PROVIDED MORE THAN 30 DAYS AFTER THE DEBTOR BECOMES OBLIGATED TO THE
CREDITOR:

(1)      THE TERM OF THE CREDIT LIFE INSURANCE, CREDIT HEALTH
INSURANCE, OR CREDIT INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE MAY
BEGIN ON THE DATE THAT THE INSURER DETERMINES THAT THE EVIDENCE IS
SATISFACTORY; AND

(2)      THE INSURER SHALL REFUND OR ADJUST ANY CHARGE TO THE
DEBTOR FOR INSURANCE AS APPROPRIATE.

(C)     SCHEDULED MATURITY OF INDEBTEDNESS.

(1)      THE TERM OF CREDIT LIFE INSURANCE, CREDIT HEALTH
INSURANCE, OR CREDIT INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE MAY
NOT EXTEND MORE THAN 15 DAYS AFTER THE SCHEDULED MATURITY DATE OF
THE INDEBTEDNESS, UNLESS THE TERM IS EXTENDED WITHOUT ADDITIONAL COST
TO THE DEBTOR.

(2)      IF THE INDEBTEDNESS IS DISCHARGED BEFORE ITS SCHEDULED
MATURITY DATE DUE TO RENEWAL OR REFINANCING, THE INSURER SHALL
TERMINATE THE CREDIT LIFE INSURANCE, CREDIT HEALTH INSURANCE, OR CREDIT
INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE IN FORCE BEFORE ISSUANCE
OF ANY NEW CREDIT LIFE INSURANCE, CREDIT HEALTH INSURANCE, OR CREDIT
INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE FOR THE RENEWED OR
REFINANCED INDEBTEDNESS.

(3)      THE INSURER SHALL PAY OR CREDIT A REFUND AS PROVIDED IN §
13-112 OF THIS TITLE IN ALL CASES OF TERMINATION OF THE INSURANCE BEFORE
THE SCHEDULED MATURITY DATE OF THE INDEBTEDNESS.

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

In subsections (b) and (c)(2) and (3) of this section, the references to "the

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