S.B. 751                                                  VETOES

(c) The Commissioner or an examiner shall make a complete report of each
investigation or examination as provided in § 2-209 of this article.

23-201.

(a)     A premium finance company must register with the Commissioner before
engaging in business as a premium finance company in the State.

(b)     An insurer, agent, or broker must register with the Commissioner before
engaging in the business of financing premiums in the State.

(C) THE REGISTRATION REQUIREMENTS OF THIS TITLE DO NOT APPLY TO A
PERSON WHO PURCHASES OR OTHERWISE ACQUIRES A PREMIUM FINANCE
AGREEMENT FROM A REGISTERED PREMIUM FINANCE COMPANY IF A REGISTERED
PREMIUM FINANCE COMPANY OR A PERSON LISTED IN § 23-102 OF THIS TITLE
REMAINS FULLY RESPONSIBLE FOR THE PREMIUM FINANCE AGREEMENT AND ITS
ADMINISTRATION.

23-202.

(a)     To engage in business as a premium finance company in the State, each
premium finance company shall ELECT TO.

(1)      MAINTAIN A NET WORTH OF AT LEAST $250,000 CALCULATED UNDER
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES:

(2)      FILE WITH THE COMMISSIONER A AN IRREVOCABLE LETTER OF
CREDIT IN THE AMOUNT OF $50,000 ISSUED BY A FINANCIAL INSTITUTION; OR

(3) DEPOSIT WITH THE STATE TREASURER CASH IN THE AMOUNT OF
$50,000; OR

(3)     (4) file with the Commissioner a bond that:
[(1)](I) is in favor of the State;

[(2)] (II) is in the penal sum of [ $25,000] $50,000;

[(3)] (III) is executed by an authorized surety insurer; and

[(4)] (IV) is conditioned that the premium finance company will account
for and pay over to the person entitled to receive it all money belonging to the person that
comes into the possession of the premium finance company, including unearned
premiums due to an insured and unearned commissions due to an insurer.

(b)     [The] A bond shall remain in force until the surety insurer is released from
liability by the Commissioner or until the bond is canceled by the surety insurer.

(c)     The total liability of the surety insurer under [the] A bond may not exceed
the penal sum of the bond.

(d)     (1) (i) The surety insurer may cancel [the] A bond after filing written
notice with the Commissioner at least 30 days before the effective date of the
cancellation.

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