PARRIS N. GLENDENING, Governor                             S.B. 751

Section 23-310 and 23-401.1

Annotated Code of Maryland

(1996 Volume)

(As enacted by Chapter 11 of the Acts of the Genera! 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 CHARGE.

(2) "Premium finance agreement" does not include a premium financed in
connection with a time sale of goods or services or an extension of credit without charge
by an agent or broker.

(C) "PRODUCER" MEANS AN AGENT OR BROKER AS DEFINED IN THIS
ARTICLE.

[(c)] (D) "Premium finance company" means a person that engages in the
business of entering into or accepting premium finance agreements.

23-102.

No bank, savings bank, trust company, savings and loan association, credit union,
industrial finance company, small loan company, or other similar organization that is
regulated under the laws of the State or the United States nor any bank, savings bank,
trust company, savings and loan association, or credit union that is organized in another
state and has a branch in this State nor any authorized insurer that does not engage in the
insurance financing business is subject to this title.

23-103.

(a)     The Commissioner may conduct investigations and examine the books,
records, and accounts of a person under this title to the same extent as is authorized with
respect to insurers under this article.

(b)     The expense of an examination shall be paid by the person examined as
provided in § 2-208 of this article.

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