Ch. 35

1997 LAWS OF MARYLAND

27-216. IMPROPER PREMIUMS AND CHARGES.

(A) INSURANCE NOT PROVIDED.

A PERSON MAY NOT WILLFULLY COLLECT A PREMIUM OR CHARGE FOR
INSURANCE IF THE INSURANCE IS NOT THEN PROVIDED, OR IS NOT IN DUE COURSE
TO BE PROVIDED SUBJECT TO ACCEPTANCE OF THE RISK BY THE INSURER, IN A
POLICY ISSUED BY AN INSURER AS AUTHORIZED BY THIS ARTICLE.

(B) IMPROPER PREMIUMS AND CHARGES GENERALLY; EXCEPTIONS.

(1) A PERSON MAY NOT WILLFULLY COLLECT A PREMIUM OR CHARGE
FOR INSURANCE THAT:

(I) EXCEEDS OR IS LESS THAN THE PREMIUM OR CHARGE
APPLICABLE TO THAT INSURANCE UNDER THE APPLICABLE CLASSIFICATIONS AND
RATES AS FILED WITH AND APPROVED BY THE COMMISSIONER; OR

(II) IF CLASSIFICATIONS, PREMIUMS, OR RATES ARE NOT
REQUIRED BY THIS ARTICLE TO BE FILED WITH AND APPROVED BY THE
COMMISSIONER, EXCEEDS OR IS LESS THAN THE PREMIUM OR CHARGE SPECIFIED
[N THE POLICY AND SET BY THE INSURER.

(2) PARAGRAPH (1) OF THIS SUBSECTION DOES NOT PROHIBIT:

(I) A SURPLUS LINES BROKER THAT HOLDS A CERTIFICATE OF
QUALIFICATION UNDER TITLE 3, SUBTITLE 3 OF THIS ARTICLE FROM CHARGING
AND COLLECTING APPLICABLE STATE AND FEDERAL TAXES IN ADDITION TO THE
REQUIRED PREMIUM;

(II) A LIFE INSURER FROM CHARGING AND COLLECTING THE
AMOUNT ACTUALLY EXPENDED FOR A MEDICAL EXAMINATION OF AN APPLICANT
FOR LIFE INSURANCE OR REINSTATEMENT OF A POLICY OF LIFE INSURANCE;

(III) A BROKER FROM CHARGING A FEE, NOT EXCEEDING 15% OF
THE PREMIUM, FOR SERVICES RENDERED IN REPLACING INSURANCE IN AN
INSURER IF COMMISSIONS ARE NOT PAYABLE BY THE INSURER;

(IV) AN AGENT OR BROKER FROM CHARGING AND COLLECTING,
AS ACTUAL EXPENSES INCURRED IN PLACING AUTOMOBILE INSURANCE WITH THE
MARYLAND AUTOMOBILE INSURANCE FUND:

1. A MAXIMUM CHARGE OF $10 PLUS $1 MORE THAN THE
ACTUAL CHARGE BY THE MOTOR VEHICLE ADMINISTRATION FOR A DRIVING
RECORD REQUIRED TO BE PRESENTED WITH THE APPLICATION, UNLESS
OTHERWISE PROVIDED BY THE FUND; OR

2. THE AMOUNT PROVIDED IN SUBSECTION (E) OF THIS

SECTION; OR

(V) AN AUTHORIZED INSURER FROM CHARGING AND
COLLECTING REASONABLE INSTALLMENT FEES AS APPROVED BY THE
COMMISSIONER.

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