Ch. 708                                    1997 LAWS OF MARYLAND                           

(2)     SUBJECT TO SUBSECTION (B) OF THIS SECTION, from the EARLIER OF
THE inception date of the insurance contract or from the due date of the premium,
disregarding any grace period or credit allowed for payment of the premium; through the
date when the final installment under the premium finance agreement is payable; and

(3)     at a rate not exceeding 1.15% for each 30 days, charged in; advance.

(B) IF PREMIUMS UNDER MORE THAN ONE INSURANCE CONTRACT ARE
INCLUDED IN THE SAME PREMIUM FINANCE AGREEMENT, INTEREST MAY BE
COMPUTED FROM THE EFFECTIVE DATE OF THE EARLIEST INSURANCE CONTRACT
TO THE DATE WHEN THE FINAL INSTALLMENT IS DUE.

23-305.

(a)     A premium finance company may charge an initial service fee FOR EACH
LOAN MADE, which may not exceed $20, for actual expenses.

(b)     The initial service fee may not be refunded on cancellation or repayment.
23-306.

(a)     A premium finance agreement may require the insured to pay a delinquency
and collection charge on each installment that is in default for a period of not less than 5
days.

(b)     A delinquency and collection charge shall be at least $1, up to a maximum of
5% of the installment in default, but may not exceed:

(1)     $5, with respect to private passenger automobile or personal fire or
liability insurance; and

(2)     [$50] $100, with respect to commercial automobile, fire, or liability
insurance.

(c)     Only one delinquency and collection charge may be collected on an
installment, regardless of the period during which the installment remains in default.

23-307.                                                                                                         

(a)     A premium finance agreement may require the insured to pay a cancellation
charge if a default in paying an installment results in the cancellation of an insurance
contract listed in the premium finance agreement.

(b)     A cancellation charge shall be;

(1)     with respect to private passenger automobile or personal fire or liability
insurance, equal to the difference between a delinquency and collection charge imposed
under § 23-306 of this subtitle with respect to the installment in default and $10; and

(2)     with respect to commercial automobile, fire, or liability insurance, 5% of
the installment, not to exceed [$50] AN AMOUNT EQUAL TO THE DIFFERENCE
BETWEEN A DELINQUENCY AND COLLECTION CHARGE IMPOSED UNDER § 23-306 OF
THIS SUBTITLE WITH RESPECT TO THE INSTALLMENT IN DEFAULT AND $100.

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