PARRIS N. GLENDENING, Governor

Ch. 11

23-502. SPLITTING FEES.

A PERSON MAY NOT PAY ANY PART OF AN INITIAL SERVICE FEE OR ANY
OTHER FEE OR CHARGE TO AN AGENT, BROKER, EMPLOYEE OF AN AGENT OR
BROKER, OR TO ANY OTHER PERSON AS AN INDUCEMENT TO FINANCING AN
INSURANCE CONTRACT WITH A PREMIUM FINANCE COMPANY.

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

The reference to an initial "service fee" is added for consistency with § 23-305
of this title.

The reference to a "charge" is added for clarity and consistency with Subtitle
3 of this title, which refers to various charges and fees.

The defined term "insurance contract" is substituted for the former term
"policy" for consistency throughout this title.

Defined terms: "Agent" § 1-101
"Broker" § 1-101
"Insurance contract" § 1-101
"Person" § 1-101

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

23-503. INDUCEMENT TO OBTAIN MULTIPLE INITIAL SERVICE FEES.

A PREMIUM FINANCE COMPANY MAY NOT INDUCE AN INSURED TO ENTER
INTO MORE THAN ONE PREMIUM FINANCE AGREEMENT IN ORDER TO OBTAIN
MORE THAN ONE INITIAL SERVICE FEE.

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

Defined terms: "Premium finance agreement" § 23-101
"Premium finance company" § 23-101

23-504. EXCESS CHARGES.

UNLESS OTHERWISE AUTHORIZED BY LAW, A PERSON MAY NOT CHARGE,
TAKE, RECEIVE FROM, RESERVE, OR IMPOSE ON AN INSURED OR PROSPECTIVE
INSURED GREATER CHARGES THAN THOSE ALLOWED BY THIS TITLE.

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

Defined term: "Person" § 1-101

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