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2007 Laws of Maryland
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Ch. 338
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[(g)] (H) A binder is no longer valid after the policy as to which it was given
is issued.
[(h)] (I) (1) If a binder is given to a consumer borrower to satisfy a
lender's requirement that the borrower obtain property insurance or credit loss
insurance as a condition of making a loan secured by a first mortgage or first deed of
trust on an interest in owner-occupied residential real property, the insurer or its
insurance producer shall include in or with the binder:
(i) the name and address of the insured consumer borrower;
(ii) the name and address of the lender;
(iii) a description of the insured residential real property;
(iv) a provision that the binder may not be canceled within the
term of the binder unless the lender and the insured borrower receive written notice at
least 15 days before the cancellation;
(v) except in the case of the renewal of a policy after the closing
of a loan, a paid receipt for the full amount of the applicable premium; and
(vi) the amount of coverage.
(2) With respect to a binder given under this subsection, an insurer:
(i) if the binder is to be canceled, shall give the lender and the
insured consumer borrower at least 15 days' written notice before the cancellation; and
(ii) within 45 days after the date the binder was given, shall
issue a policy of insurance or provide the required notice of cancellation of the binder.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be
construed to apply to all binders or policies of personal insurance issued or delivered
on or after the effective date of this Act.
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2007.
Approved by the Governor, May 8, 2007.
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- 2140 -
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