Ch. 11                                          1996 LAWS OF MARYLAND

NOTWITHSTANDING SUBSECTION (A) OF THIS, SECTION, DELINQUENCY,
COLLECTION, CANCELLATION, AND REINSTATEMENT CHARGES MAY BE MADE IN
ACCORDANCE WITH THE LIMITATIONS OF §§ 23-306 AND 23-307 OF THIS SUBTITLE.

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

Defined term: "Premium finance agreement" § 23-101

23-304. FINANCE CHARGE.

THE FINANCE CHARGE SHALL BE COMPUTED:

(1)      ON THE AMOUNT OF THE ENTIRE PREMIUM LOAN ADVANCED,
AFTER SUBTRACTING ANY DOWN PAYMENT ON THE PREMIUM LOAN MADE BY THE
INSURED;

(2)      FROM THE INCEPTION DATE OF THE INSURANCE CONTRACT OR
FROM THE DUE DATE OF THE PREMIUM, DISREGARDING ANY GRACE PERIOD OR
CREDIT ALLOWED FOR PAYMENT OF THE PREMIUM, THROUGH THE DATE WHEN
THE FINAL INSTALLMENT UNDER THE PREMIUM FINANCE AGREEMENT IS PAYABLE;
AND

(3) AT A RATE NOT EXCEEDING 1.15% FOR EACH 30 DAYS, CHARGED IN
ADVANCE.                                                         

REVISOR'S NOTE: This section is new language derived without substantive
change from the first sentence of former Art. 48A, § 486E(a).

Defined terms: "insurance contract" § 1-101 .                                             

"Premium" § 1-101
"Premium finance agreement" § 23-101

23-305. INITIAL SERVICE FEE.

(A)     IN GENERAL.

A PREMIUM FINANCE COMPANY MAY CHARGE AN INITIAL SERVICE FEE,
WHICH MAY NOT EXCEED $20, FOR ACTUAL EXPENSES.

(B)      REFUND PROHIBITED.

THE INITIAL SERVICE FEE MAY NOT BE REFUNDED ON CANCELLATION OR
REPAYMENT.

REVISOR'S NOTE: This section is new language derived without substantive
change from the first clause of the second sentence of former Art. 48A, §
486E(a).

Defined term: "Premium finance company" § 23-101

23-306. DELINQUENCY AND COLLECTION CHARGE.

(A) IN GENERAL.

- 606 -