PARRIS N. GLENDENING, Governor

Ch. 273

(2) THE PREMIUM FINANCE COMPANY DELIVERS OR MAILS A WRITTEN
NOTICE TO THE INSURED AT THE LAST KNOWN ADDRESS OF THE INSURED
INDICATING THAT:

(I) THERE IS A REVISED PREMIUM FINANCE AGREEMENT; AND

(II) IN THE EVENT OF DEFAULT IN PAYMENT OF THE REVISED
PREMIUM FINANCE AGREEMENT, THE POLICY MAY BE CANCELED.

(B) AN INSURER MAY NOT DELAY CANCELLATION FOR THE SOLE PURPOSE
OF APPLYING PREMIUMS ON DEPOSIT TO ANY ADDITIONAL PREMIUM

23-302.2.

(A) IF AN INSURER RECEIVES NOTICE OF A FINANCED INSURANCE PREMIUM,
THE INSURER SHALL, WITHIN 5 10 BUSINESS DAYS AFTER ITS CALCULATION, NOTIFY
THE INSURED, INSURER'S AGENT, AND PREMIUM FINANCE COMPANY OF ANY
ADDITIONAL PREMIUM ARISING UNDER THE FINANCED POLICY.

(B) IF THE INSURER FAILS TO NOTIFY THE INSURED, INSURER'S AGENT, OR PREMIUM FINANCE COMPANY OF AN ADDITIONAL PREMIUM UNDER SUBSECTION
(A) OR THIS SECTION, THE INSURER MAY NOT DEDUCT THE ADDITIONAL PREMIUM
OR ANY PART OF THE ADDITIONAL PREMIUM FROM THE CALCULATION OF
UNEARNED PREMIUM ON CANCELLATION OF THE POLICY.

23-310.

A PRODUCER, AGENT, AN AGENT OR BROKER MAY ONLY BE APPOINTED AS AN
AGENT OF A PREMIUM FINANCE COMPANY IF THE APPOINTMENT IS IN WRITING
AND IS FILED WITH THE COMMISSIONER.

23-403.1.

IF AN INSURER RECEIVES NOTICE FROM AN AGENT OR PREMIUM FINANCE
COMPANY, WITHIN 15 BUSINESS DAYS AFTER RECEIPT OF THE INITIAL DOWN
PAYMENT FOR THE COVERAGE BEING FINANCED, THAT THE INITIAL DOWN
PAYMENT HAS BEEN DISHONORED A SECOND TIME BY A FINANCIAL INSTITUTION,
THERE IS NO VALID INSURANCE CONTRACT OR INSURANCE CONTRACTS, AND THE
POLICY SHALL BE VOIDED.

23-405.

(a) (1) Whenever an insurance contract is canceled in accordance with this
subtitle, the insurer shall return any gross unearned premiums that are due under the
insurance contract; [less agents' earned commissions] COMPUTED PRO RATA, AND
EXCLUDING ADMINISTRATIVE FEES FILED WITH THE COMMISSIONER, to the
premium finance company for the account of the insured within a reasonable time not
exceeding [60] 45 days after:

(i) receipt by the insurer of [the] A WRITTEN notice of cancellation
FROM THE PREMIUM FINANCE COMPANY; or

(ii) completion of any payroll audit necessary to determine the amount
of premium earned while the insurance contract was in force.

- 2097 -