Ch. 688 1996 LAWS OF MARYLAND
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:
Article - Insurance
23-309.
A PREMIUM FINANCE COMPANY MAY NOT CHARGE AN INSURED OR A
PROSPECTIVE INSURED ANY FEE FOR THE EXPENSE THAT THE PREMIUM FINANCE
COMPANY INCURS IN OBTAINING A COMPREHENSIVE LOSS UNDERWRITING
EXCHANGE AUTOMOBILE REPORT (CLUE REPORT) REGARDING THE INSURED OR
PROSPECTIVE INSURED IF A PRODUCER ALREADY HAS CHARGED THE INSURED OR
PROSPECTIVE INSURED FOR OBTAINING THE REPORT.
SECTION 2. 3. AND BE IT FURTHER ENACTED, That the Maryland Automobile
Insurance Fund shall report to the Senate Finance Committee and the House Economic
Matters Committee on or before October 1, 1999 on information relating to the impact of
allowing premium finance companies to obtain comprehensive loss underwriting exchange
automobile reports (CLUE reports) for the placement of policies through the Maryland
Automobile Insurance Fund. The report shall include;
(1) the number of agents, brokers, and premium finance companies sponsored
by the Fund who obtain CLUE reports directly from any person that provides the reports;
(2) the number of agents and brokers who obtain CLUE reports through a
premium finance company;
(3) the amount of savings in administrative costs that the Fund has realized as
a direct result of allowing the Fund to sponsor premium finance companies to obtain CLUE
reports;
(4) the impact, if any, on the Fund's rates as a direct result of allowing the Fund
to sponsor premium finance companies to obtain CLUE reports;
(5) the average cost of a CLUE report to a policyholder that is obtained by a
premium finance company; and
(6) the impact on the policy cancellation rate and on the number of additional
premium notices issued by the Fund as a result of allowing the Fund to sponsor premium
finance companies to obtain CLUE reports.
SECTION 4. AND BE IT FURTHER ENACTED. That Section 1 Sections I and
3 of this Act shall take effect October 1, 1996.
SECTION 4. 5. AND BE IT FURTHER ENACTED, That Section 2 of this Act
shall take effect October 1, 1997.
Approved May 23, 1996.
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