PARRIS N. GLENDENING, Governor

Ch. 708

(c) If a notice of cancellation is withdrawn before its effective date and the
insurance coverage is reinstated, the premium finance agreement may require the insured
to pay a reinstatement charge in the same amount as the cancellation charge that would
have been paid if the cancellation had actually taken effect.

(D) A PREMIUM FINANCE AGREEMENT MAY PROVIDE FOR THE PAYMENT OF
COLLECTION COSTS AND ATTORNEY'S FEES ON CANCELLATION EQUAL TO 20% OF
THE OUTSTANDING DEBT IF THE PREMIUM FINANCE AGREEMENT IS REFERRED
FOR COLLECTION TO A COLLECTION AGENCY OR ATTORNEY.

23-308.

A premium finance company may charge a dishonored check fee, which may not
exceed [$20] $25, for actual expenses incurred in the processing of a dishonored check.

23-309.

A premium finance company may not charge an insured or a prospective insured
any fee for the expense that the premium finance company incurs in obtaining a
comprehensive loss underwriting exchange automobile report (CLUE report) regarding
the insured or prospective insured if a producer already has charged the insured or
prospective insured for obtaining the report.

23-310.

FILING OF A PREMIUM FINANCE AGREEMENT IS NOT NEEDED TO PERFECT THE
VALIDITY OF THE PREMIUM FINANCE AGREEMENT AS A SECURED TRANSACTION AS
AGAINST CREDITORS, SUBSEQUENT PURCHASERS, PLEDGEES, ENCUMBRANCERS,
TRUSTEES IN BANKRUPTCY OR ANY OTHER INSOLVENCY PROCEEDING UNDER ANY
LAW, OR ANYONE HAVING THE STATUS OR POWER OF ANY OF THOSE PERSONS,
THEIR SUCCESSORS, OR ASSIGNS.

23-401.

When in connection with a premium finance agreement a power of attorney or
other authority to cancel an insurance contract on behalf of an insured is given to a
premium finance company, the premium finance company may not cancel the insurance
contract except in accordance with this subtitle.

23-401.1.

(A) EXCEPT AS PROVIDED UNDER SUBSECTION (B) OF THIS SECTION. ANY
NOTICE TO AN INSURED SHALL BE SENT BY PERSONAL DELIVERY OR FIRST CLASS
MAIL.

(A)    (B) AT THE OPTION OF THE INSURED WITH RESPECT TO COMMERCIAL
AUTOMOBILE FIRE, OR LIABILITY INSURANCE AND AT THE REQUEST OF THE
INSURED. A PREMIUM FINANCE COMPANY MAY SEND ANY NOTICE REQUIRED
UNDER THIS SUBTITLE TO THE INSURED BY PERSONAL DELIVERY, FIRST CLASS
MAIL, ELECTRONIC MAIL, OR FACSIMILE TRANSMISSION.

(B)    A NOTICE DELIVERY METHOD OTHER THAN PERSONS DELIVERY OR
FIRST CLASS MAIL MAY BE USED ONLY WITH THE CONSENT OF THE INSURED.

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