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§ 23-301.2. Assignment of rights and obligations and pledge of premium finance agreement as col...

West's Annotated Code of MarylandInsuranceEffective: June 1, 2015

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 23. Premium Financing
Subtitle 3. Premium Finance Agreements; Charges and Fees (Refs & Annos)
Effective: June 1, 2015
MD Code, Insurance, § 23-301.2
§ 23-301.2. Assignment of rights and obligations and pledge of premium finance agreement as collateral for loan
Currentness
Private passenger motor vehicle and personal insurance
(a)(1) With respect to private passenger motor vehicle insurance and personal insurance, a premium finance company may:
(i) assign all rights and obligations under a premium finance agreement to another premium finance company that is registered in the State under this title; or
(ii) pledge a premium finance agreement as collateral for a loan.
(2) If a premium finance company assigns the obligation to service a premium finance agreement to another premium finance company under paragraph (1)(i) of this subsection, the assigning premium finance company shall notify the insured in accordance with subsection (c) of this section:
(i) that the obligation to service the premium finance agreement has been assigned to another premium finance company that is registered in the State under this title; and
(ii) of the name, address, and telephone number of the premium finance company to which the obligation has been assigned.
Commercial automobile, fire, or liability insurance
(b)(1) With respect to commercial automobile, fire, or liability insurance, a premium finance company:
(i) except as provided in paragraph (2) of this subsection, may assign all rights and obligations under a premium finance agreement to another person if the premium finance agreement expressly confers the right to assign all rights and obligations under the premium finance agreement; or
(ii) may pledge a premium finance agreement as collateral for a loan.
(2) A premium finance company that assigns rights and obligations under paragraph (1)(i) of this subsection shall:
(i) retain the obligation to service the premium finance agreement; or
(ii) assign the obligation to service the premium finance agreement to another premium finance company that is registered in the State under this title.
(3) If a premium finance company assigns the obligation to service a premium finance agreement to another premium finance company under paragraph (2)(ii) of this subsection, the assigning premium finance company shall notify the insured in accordance with subsection (c) of this section:
(i) that the obligation to service the premium finance agreement has been assigned to another premium finance company that is registered in the State under this title; and
(ii) of the name, address, and telephone number of the premium finance company to which the obligation has been assigned.
Mail or delivery of notice
(c) A notice required under subsection (a)(2) or (b)(3) of this section shall be by:
(1) first-class mail; or
(2) if the premium finance company meets the requirements for delivering a notice under § 27-601.2 of this article, electronic means.

Credits

Added by Acts 2013, c. 334, § 2, eff. July 1, 2013. Amended by Acts 2015, c. 16, § 1, eff. June 1, 2015.
MD Code, Insurance, § 23-301.2, MD INSURANCE § 23-301.2
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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