PARRIS N. GLENDENING, Governor

Ch. 708

premium finance companies and premium finance agreements.

BY repealing and reenacting, with amendments,
Article - Insurance
Section 23-101, 23-201 23-202 through 23-205, 23-207, 23-208, 23-301, 23-302,

23-304 23-305 23-306 through 23-308, 23-402, 23-403, and 23-405, and

23-501

Annotated Code of Maryland

(1996 Volume)

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

BY repealing and reenacting, without amendments,
Article - Insurance

Section 23-102, 23-103, 23-206, 23-201, 23-209, 23-210, 23-302, 23-303, 23-304,
23-305, 23-309, 23-401, 23 402, 23-404, 23-406, and 23-501 23-502 through
23-506

Annotated Code of Maryland

(1996 Volume)

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

BY adding to

Article - Insurance

Section 23-310 and 23-401.1

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

23-101.

(a)     In this title the following words have the meanings indicated.

(b)     (1) "Premium finance agreement" means an agreement:

(i) by which an insured or prospective insured promises to pay to [or
to the order of another an] A PREMIUM FINANCE COMPANY OR ITS ASSIGNEE THE
amount advanced or to be advanced under the agreement TOGETHER WITH INTEREST
AND A SERVICE FEE to an insurer, THE INSURER'S agent, or A PRODUCER OR broker in
payment of premiums; and

(ii) that contains an assignment of or is otherwise secured by the
unearned premium or refund obtainable from the insurer on cancellation of the insurance
contract, TOGETHER WITH INTEREST AND A SERVICE CHANGE.

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