Ch. 273

1997 LAWS OF MARYLAND

CHAPTER 273
(House Bill 1099)

AN ACT concerning

Premium Financing - Administration, Cancellation, and Prohibitions

FOR the purpose of altering certain provisions of law relating to premium finance
companies and premium finance agreements; altering certain requirements and
contents of premium finance agreements, their terms, administration, charges, and
cancellation; authorizing the financing of certain additional or renewal premiums
under certain circumstances, subject to certain conditions and limitations; requiring
certain notices to certain persons under certain circumstances; limiting certain
deductions with regard to certain policies under certain circumstances; providing
for certain effects of a notice of dishonor under certain circumstances; altering and
adding certain provisions relating to premiums and their return, including
calculation, responsibility, application, and interest; prohibiting certain acts by
certain persons, including insurers and agents, subject to certain penalties; and
generally relating to premium finance companies and premium finance agreements.

BY adding to

Article - Insurance

Section 23-302.1, 23-302.2, 23-310, 23-403.1, 23-505.1, and 23-505.2
Annotated Code of Maryland
(1996 Volume)

(As enacted by Chapter 11 of the Acts of the General Assembly of 1996)

BY repealing and reenacting, with amendments,
Article - Insurance
Section 23-405
Annotated Code of Maryland
(1996 Volume)

(As enacted by Chapter 11 of the Acts of the General Assembly of 1996)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Insurance

23-302.1.

(A) AN INSURED MAY FINANCE AN ADDITIONAL OR RENEWAL PREMIUM MAY
BE FINANCED IF:

(1) THE INSURED HAS PAID THE DOWN PAYMENT, IF ANY, REQUIRED
BY THE PREMIUM FINANCE COMPANY ON THE ADDITIONAL OR RENEWAL
PREMIUM; AND

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