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Ch. 532 2002 LAWS OF MARYLAND
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[(f)] (H) A lender may not require the borrower to purchase any insurance:
(1) Through a particular insurance producer or insurance company; or
(2) From the lender.
12-1007.
(a) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) "COVERED LOAN" MEANS A MORTGAGE LOAN MADE UNDER THIS
SUBTITLE THAT MEETS THE CRITERIA DESCRIBED FOR A LOAN SUBJECT TO THE
FEDERAL HOME OWNERSHIP EQUITY PROTECTION ACT SET FORTH IN 15 U.S.C. §
1602(AA), AS MODIFIED FROM TIME TO TIME BY REGULATION Z, 12 C.F.R. PART 226,
EXCEPT THAT THE COMPARISON PERCENTAGES FOR THE MORTGAGE LOAN SHALL
BE ONE PERCENTAGE POINT LESS THAN THOSE SPECIFIED IN 15 U.S.C. § 1602(AA), AS
MODIFIED FROM TIME TO TIME BY REGULATION Z, 12 C.F.R. PART 226.
(3) "CREDIT HEALTH INSURANCE" HAS THE MEANING STATED IN
§ 13-101 OF THE INSURANCE ARTICLE.
(4) "CREDIT INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE" HAS
THE MEANING STATED IN § 13-101 OF THE INSURANCE ARTICLE.
(5) (I) "CREDIT LIFE INSURANCE" MEANS INSURANCE ON THE LIFE OF
A BORROWER THAT PROVIDES INDEMNITY FOR REPAYMENT OF A SPECIFIC LOAN OR
CREDIT TRANSACTION ON THE DEATH OF THE BORROWER
(II) "CREDIT LIFE INSURANCE" DOES NOT INCLUDE LIFE
INSURANCE PAYABLE TO A BENEFICIARY DESIGNATED BY THE BORROWER OTHER
THAN THE OBLIGEE OF A SPECIFIC LOAN OR CREDIT TRANSACTION.
(6) "MORTGAGE LOAN" HAS THE MEANING STATED IN § 11-501 OF THE
FINANCIAL INSTITUTIONS ARTICLE.
(7) "PREMIUM" HAS THE MEANING STATED IN § 1-101 OF THE
INSURANCE ARTICLE.
(8) "SINGLE PREMIUM COVERAGE" MEANS INSURANCE FOR WHICH THE
TOTAL PREMIUM IS PAYABLE IN ONE LUMP SUM AT OR BEFORE THE TIME COVERAGE
COMMENCES.
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(B) In connection with a loan to a consumer borrower:
(1) The purchase of credit life INSURANCE, credit [accident and] health
INSURANCE, [credit disability,] CREDIT involuntary unemployment benefit
INSURANCE, and similar insurance coverages is optional with the consumer borrower;
and
(2) Subject to § 12-1007.1 of this subtitle, the purchase of property
insurance, title insurance, and credit loss insurance from an insurer of the borrower's
choice may be required if the loan is secured.
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- 4014 -
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