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Ch. 532 2002 LAWS OF MARYLAND
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(3) Subject to subsection [(d)] (E) of this section, at the option of the
borrower, a lender may be coinsured or protected to the extent of his interest by a
mortgagee clause.
[(c)] (D) (1) (i) Subject to subsection [(d)] (E) of this section, the amount of
property insurance may not exceed either the reasonable value of the property
insured or the originally scheduled total of payments under the loan contract.
(ii) The terms and conditions of the property insurance policy shall
be filed with and approved by the Insurance Commissioner.
(iii) Property insurance may be provided by the lender if the
borrower, at the time the loan is made, fails to furnish a loss payable endorsement for
the protection of the lender in an amount sufficient to cover the amount of the Loan or
the value of the property securing the loan, whichever is less.
(iv) If, however, within 30 days of the inception date of the loan, the
borrower does provide a loss payable endorsement for the protection of the lender, and
no claim has been filed under the coverage purchased, the lender shall cancel the
property insurance on the loan and shall refund the entire original property
insurance premium to the borrower.
(v) A lender providing property insurance under this section shall
give the borrower, at the time the loan is made, a written notice of the borrower's
right to provide a loss payable endorsement for the protection of the lender and the
borrower's right to a refund of the entire property insurance premium.
(2) [Accident and] CREDIT health insurance shall provide for:
(i) Benefits not exceeding the then scheduled unpaid total of
payments of the loan;
(ii) A waiting period of at least 14 days; and
(iii) Periodic benefits, the amount of each of which may not exceed
the originally scheduled total of payments under the loan contract, divided by the
number of installments.
(3) The amount of credit life insurance in force may not exceed the
unpaid principal but shall include all accrued interest under the loan contract.
(4) [(i) In this paragraph, "involuntary unemployment benefit
insurance" means any insurance designed to pay the creditor the monthly payment
obligation of the debtor due to the debtor's involuntary loss of employment.
(ii)] [Involuntary] CREDIT INVOLUNTARY unemployment benefit
insurance shall provide that, in the event of involuntary loss of employment, the
aggregate amount of periodic benefits payable in the event of involuntary loss of
employment, as defined in the policy, may riot exceed the then scheduled unpaid total
of payments of the loan.
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