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Martin O'Malley, Governor
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H.B. 634
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(IV) BE SENT BY CERTIFICATE OF MAIL.
[(f)] (G) A binder or other contract for temporary insurance:
(1) may be made orally or in writing; and
(2) except as superseded by the clear and express terms of the binder,
is considered to include:
(i) all the usual terms of the policy as to which the binder was
given; and
(ii) the applicable endorsements designated in the binder.
[(g)] (H) A binder is no longer valid after the policy as to which it was given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
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- 4731 -
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