PARRIS N. GLENDENING, Governor                                S.B. 751

(G) ANY OUTSTANDING BALANCE REMAINING AFTER A PREMIUM FINANCE
AGREEMENT IS CANCELED MAY EARN INTEREST AT THE RATE STATED IN THE
PREMIUM FINANCE AGREEMENT UNTIL THE BALANCE IS PAID IN FULL.

23-505.1.

AN INSURER. ITS AGENT, BROKER. OR PRODUCER MAY NOT: AN INSURER THAT
MARKETS THROUGH INDEPENDENT AGENTS AS DEFINED IN THIS ARTICLE MAY
NOT. WITH RESPECT TO COMMERCIAL AUTOMOBILE, FIRE, OR LIABILITY
INSURANCE:

(1) REFUSE TO ISSUE OR DENY THE ISSUANCE OF A POLICY FOR
COMMERCIAL AUTOMOBILE, FIRE, OR LIABILITY INSURANCE BECAUSE PREMIUMS
HAVE BEEN ADVANCED BY A REGISTERED PREMIUM FINANCE COMPANY NOT
AFFILIATED WITH THE INSURER; OR

(2) REQUIRE AN INSURED TO USE A PARTICULAR PREMIUM FINANCE
COMPANY OR OTHER INSTALLMENT PLAN.

23-505.2.

AN INSURER OR ITS AGENT THAT MARKETS THROUGH INDEPENDENT AGENTS
AS DEFINED IN THIS ARTICLE MAY NOT, WITH RESPECT TO COMMERCIAL
AUTOMOBILE, FIRE. OR LIABILITY INSURANCE. DISCRIMINATE, INTIMIDATE, OR
RETALIATE AGAINST A PRODUCER, AN AGENT, BROKER, OR INSURED THAT USES
PREMIUM FINANCING BY DENYING THE PRODUCER, AGENT. BROKER, OR INSURED
THE SAME RIGHTS ACCORDED TO PRODUCERS, AGENTS, BROKERS, OR INSUREDS
WHO PAY PREMIUMS IN A DIFFERENT MANNER.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1997.

May 22, 1997

The Honorable Thomas V. Mike Miller, Jr.
President of the Senate
State House
Annapolis MD 21401

Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed Senate Bill 751:

This bill alters several provisions in the Insurance Article concerning premium financing,
including provisions regarding registration requirements, fees, opportunity for a hearing,
and premium finance agreement requirements.

House Bill 1021, which was passed by the General Assembly and signed by me on this
date, accomplishes the same purpose. Therefore, it is not necessary for me to sign Senate
Bill 751.

Sincerely,

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