Ch. 11                                      1996 LAWS OF MARYLAND

(1)     IF THE INSURER RECEIVES A NOTICE OF CANCELLATION ISSUED
UNDER SUBSECTION (A) OF THIS SECTION WITHIN 30 DAYS AFTER THE EFFECTIVE
DATE OF CANCELLATION SPECIFIED IN THE NOTICE, THE INSURANCE CONTRACT
SHALL BE CANCELED EFFECTIVE ON THE DATE SPECIFIED IN THE NOTICE.

(2)      SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION, IF THE INSURER
RECEIVES A NOTICE OF CANCELLATION ISSUED UNDER SUBSECTION (A) OF THIS
SECTION MORE THAN 30 DAYS AFTER THE EFFECTIVE DATE OF CANCELLATION
SPECIFIED IN THE NOTICE, THE INSURANCE CONTRACT SHALL BE CANCELED
EFFECTIVE ON THE DATE THE INSURER RECEIVES THE NOTICE.

(3)      IF A PREMIUM FINANCE COMPANY FAILS TO MEET THE 30-DAY
NOTICE REQUIREMENT UNDER PARAGRAPH (1) OF THIS SUBSECTION BECAUSE THE
INSTALLMENT PAYMENT OF THE INSURED IS DISHONORED AFTER THE EFFECTIVE
DATE SPECIFIED IN THE NOTICE OF CANCELLATION, THE DISHONORED PAYMENT IS
INEFFECTIVE AND THE INSURER MAY WAIVE THE 30-DAY NOTICE REQUIREMENT.

(C) RETURN OF POLICY NOT REQUIRED.

A CANCELLATION UNDER THIS SECTION SHALL BE MADE AS IF THE NOTICE OF
CANCELLATION HAD BEEN SUBMITTED BY THE INSURED, BUT WITHOUT REQUIRING
THE RETURN OF THE POLICY.

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

In subsection (a)(1) of this section, the reference to canceling the "insurance
contract" is added for clarity.

Also in subsection (a)(1) of this section, the reference to the "notice period
under § 23-402(a) of this subtitle" is substituted for the former reference to
"such ten (10) day period" for clarity.

In subsection (b)(1) and (2) of this section, the former references to a "copy
of a notice of cancellation are deleted as surplusage.

Defined terms: "Insurance contract" § 1-101
"Insurer" § 1-101
"Policy" § 1-101
"Premium finance company" § 23-101

23-404. NOTICE TO THIRD PARTIES OF CANCELLATION.

(A)     IN GENERAL.

ALL STATUTORY, REGULATORY, AND CONTRACTUAL RESTRICTIONS THAT
PROVIDE THAT THE INSURED MAY NOT CANCEL AN INSURANCE CONTRACT UNLESS
NOTICE IS GIVEN TO A GOVERNMENTAL AGENCY, MORTGAGEE, OR OTHER THIRD
PARTY SHALL APPLY TO A CANCELLATION MADE UNDER THIS SUBTITLE.

(B)     PROCEDURE.

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