S.B. 751                                                  VETOES

(C) WITH RESPECT TO COMMERCIAL AUTOMOBILE. FIRE OR LIABILITY
INSURANCE THE PREMIUM FINANCE COMPANY SHALL DELIVER THE NOTICE IN
ACCORDANCE WITH THE INSURED'S REQUEST UNDER § 23-401.1(B) OF THIS
SUBTITLE

23-403.

(a)     (1) After the end of the notice period under § 23-402(a) of this subtitle, the
premium finance company may cancel the insurance contract by submitting to the insurer
a notice of cancellation that specifies the effective date of the cancellation.

(2) (I) The premium finance company shall DELIVER OR mail a copy of
the notice of cancellation to the insured at the last known address of the insured.

(II) WITH RESPECT TO COMMERCIAL AUTOMOBILE, FIRE OR
LIABILITY INSURANCE, THE PREMIUM FINANCE COMPANY SHALL DELIVER THE
NOTICE IN ACCORDANCE WITH THE INSURED'S REQUEST UNDER § 23-401.1(B) OF
THIS SUBTITLE.

(b)     (1) If the insurer receives a notice of cancellation issued under subsection
(a) of this section within 30 days after the effective date of cancellation specified in the
notice, the INSURER SHALL CANCEL THE insurance contract [shall be canceled]
effective on the date specified in the notice, AS IF THE INSURED HAD REQUESTED THE
CANCELLATION, AND WITHOUT REQUIRING THE RETURN OF THE INSURANCE
CONTRACT OR FURTHER NOTICE TO THE INSURED.

(2)     Subject to paragraph (3) of this subsection, if the insurer receives a
notice of cancellation issued under subsection (a) of this section more than 30 days after
the effective date of cancellation specified in the notice, the insurance contract shall be
canceled effective on the date the insurer receives the notice.

(3)     If a premium finance company fails to meet the 30-day notice
requirement under paragraph (1) of this subsection because the installment payment of
the insured is dishonored after the effective date specified in the notice of cancellation,
the dishonored payment is ineffective and the insurer may waive the 30-day notice
requirement.

[(c) A cancellation under this section shall be made as if the notice of cancellation
had been submitted by the insured, but without requiring the return of the policy.]

23-404.

(a)     All statutory, regulatory, and contractual restrictions that provide that the
insured may not cancel an insurance contract unless notice is given to a governmental
agency, mortgagee, or other third party shall apply to a cancellation made under this
subtitle.

(b)     If an insurer is required under subsection (a) of this section to give notice on
behalf of itself or the insured, the insurer shall:

(1) give notice to the governmental agency, mortgagee, or other third party;
and

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