Ch. 11

1996 LAWS OF MARYLAND

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 486-3 and 486-2(a)(l) and (3), (b), (c), (d),
(e), and (f).

Former Art. 48A, § 486-2(a)(2), which provided that "[m]ortgage" includes a
deed of trust, is deleted as unnecessary as the term "mortgage" was not used
in former § 486-2 and is not used in the revision.

Defined terms: "Commissioner" § 1-101
"Insurer" § 1-101
"Person" § 1-101

TITLE 23. PREMIUM FINANCING.

SUBTITLE 1. DEFINITIONS; GENERAL PROVISIONS.

23-101. DEFINITIONS.

(A) IN GENERAL.

IN THIS TITLE THE". FOLLOWING WORDS HAVE THE MEANINGS INDICATED.

REVISOR'S NOTE: This subsection is new language derived without substantive
change from the introductory language of former Art. 48A, § 486A. It is
revised as the standard introductory language to a definition section.

(B) PREMIUM FINANCE AGREEMENT.

(1)      "PREMIUM FINANCE AGREEMENT" MEANS AN AGREEMENT:

(I)      BY WHICH AN INSURED OR PROSPECTIVE INSURED PROMISES
TO PAY TO OR TO THE ORDER OF ANOTHER AN AMOUNT ADVANCED OR TO BE
ADVANCED UNDER THE AGREEMENT TO AN INSURER, AGENT, OR BROKER IN
PAYMENT. OF PREMIUMS; AND

(II)     THAT CONTAINS AN ASSIGNMENT OF OR IS OTHERWISE
SECURED BY THE UNEARNED PREMIUM OR REFUND OBTAINABLE FROM THE
INSURER ON CANCELLATION OF THE INSURANCE CONTRACT.

(2)     "PREMIUM FINANCE AGREEMENT" DOES NOT INCLUDE A PREMIUM
FINANCED IN CONNECTION WITH A TIME SALE OF GOODS OR SERVICES OR AN
EXTENSION OF CREDIT WITHOUT CHARGE BY AN AGENT OR BROKER.

REVISOR'S NOTE: This subsection is new language derived without substantive
change from former Art. 48A, § 486A(a).

In paragraph (1)(i) of this, subsection, the former reference to "agree[ing]" to
pay an amount is deleted in light of the reference to "promis[ing]" to pay.

Defined terms: "Agent" § 1-101
"Broker" § 1-101

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