Ch. 11                                      1996 LAWS OF MARYLAND

INSURANCE WILL BE PAID OR CREDITED PROMPTLY TO THE PERSON ENTITLED TO
IT IF THE INSURANCE IS TERMINATED BEFORE THE SCHEDULED MATURITY DATE
OF THE INDEBTEDNESS.

(2)     THE FORMULA TO BE USED IN COMPUTING A REFUND SHALL BE
FILED WITH AND APPROVED BY THE COMMISSIONER.

(3)     THE COMMISSIONER SHALL ESTABLISH A MINIMUM REFUND,
BELOW WHICH AN INSURER NEED NOT MAKE A REFUND.

(B) POLICY OR CERTIFICATE NOT ISSUED.

IF A CREDITOR REQUIRES A DEBTOR TO MAKE A PAYMENT FOR CREDIT LIFE
INSURANCE, CREDIT HEALTH INSURANCE, OR CREDIT INVOLUNTARY
UNEMPLOYMENT BENEFIT INSURANCE AND AN INDIVIDUAL POLICY OR GROUP
CERTIFICATE IS NOT ISSUED, THE CREDITOR IMMEDIATELY SHALL GIVE WRITTEN
NOTICE TO THE DEBTOR AND PROMPTLY SHALL MAKE AN APPROPRIATE CREDIT TO
THE DEBTOR'S ACCOUNT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 436-I(b) and (c).

In subsection (a)(1) and (3) of this section, the defined term "insurer" is
added for clarity and specificity to identify the entity that is required to act.

In subsection (b) of this section, the reference to the "debtor's" account is
added for clarity.

Defined terms: "Commissioner" § 1-101
"Credit health insurance" § 13-101
. .. "Credit involuntary unemployment benefit insurance" § 13-101
"Credit life insurance" § 13-101
"Creditor" § 13-101
"Debtor" § 13-101
"Indebtedness" § 13-101
"Insurance" § 1-101
"Insurer" § 1-101
"Person" § 1-101
"Policy" § 1-101

13-113. CLAIMS.

(A)     IN GENERAL.

(1)     A CLAIMANT SHALL REPORT A CLAIM PROMPTLY TO THE INSURER
OR ITS DESIGNATED CLAIM REPRESENTATIVE.

(2)     THE INSURER SHALL MAINTAIN ADEQUATE CLAIM FILES.

(3)     THE INSURER SHALL SETTLE A CLAIM AS SOON AS POSSIBLE AND IN
ACCORDANCE WITH THE TERMS OF THE INSURANCE CONTRACT.

(B)     METHOD OF PAYMENT.

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