agents to provide a certain disclosure to insureds with respect to personal lines
automobile insurance; providing for the application of certain provisions of this
Act; and generally relating to discrimination against discrimination against
independent agents and insurance premium financing.

BY adding to

Article - Insurance

Section 10-133

Annotated Code of Maryland

(1997 Volume and 1998 Supplement)

BY repealing and reenacting, with amendments,
Article - Insurance
Section 23-505.1 and 23-505.2
Annotated Code of Maryland
(1997 Volume and 1998 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Insurance

10-133.

AN INDEPENDENT AGENT MAY NOT NEGOTIATE OR PLACE A PREMIUM
FINANCE AGREEMENT WITH A PREMIUM FINANCE COMPANY IN WHICH THE
INDEPENDENT AGENT HAS A DIRECT OR INDIRECT OWNERSHIP INTEREST.

23-505.1.

(A) 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 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.

(B) THIS SECTION DOES NOT APPLY TO LIFE INSURANCE OR HEALTH
INSURANCE COVERAGES, EXCEPT THOSE COVERAGES DESCRIBED IN § 20-504 OF
THIS ARTICLE.

23-505.2.

(A) An insurer 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 an agent, broker, or insured that uses
premium financing by denying the agent, broker, or insured the same rights accorded
to agents, brokers, or insureds who pay premiums in a different manner.