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§ 23-403. Cancellation of insurance contract

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 23. Premium Financing
Subtitle 4. Cancellation of Insurance Contract Under Power of Attorney (Refs & Annos)
MD Code, Insurance, § 23-403
§ 23-403. Cancellation of insurance contract
Notice of cancellation
(a)(1) After the end of the notice period under § 23-402(a) of this subtitle, the premium finance company may cancel the insurance contract by submitting to the insurer a notice of cancellation that specifies the effective date of the cancellation.
(2)(i) The premium finance company shall deliver or mail a copy of the notice of cancellation to the insured at the last known address of the insured.
(ii) With respect to commercial automobile, fire, or liability insurance, the premium finance company shall deliver the notice in accordance with the insured's request under § 23-401.1 of this subtitle.
Effective date of cancellation
(b)(1) If the insurer receives a notice of cancellation issued under subsection (a) of this section within 30 days after the effective date of cancellation specified in the notice, the insurer shall cancel the insurance contract effective on the date specified in the notice.
(2) Subject to paragraph (3) of this subsection, if the insurer receives a notice of cancellation issued under subsection (a) of this section more than 30 days after the effective date of cancellation specified in the notice, the insurance contract shall be canceled effective on the date the insurer receives the notice.
(3) If a premium finance company fails to meet the 30-day notice requirement under paragraph (1) of this subsection because the installment payment of the insured is dishonored after the effective date specified in the notice of cancellation, the dishonored payment is ineffective and the insurer may waive the 30-day notice requirement.
Cancellation made as if notice had been submitted by insured
(c) A cancellation under this section shall be made as if the notice of cancellation had been submitted by the insured, but without requiring the return of the policy.

Credits

Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 708, § 1, eff. Oct. 1, 1997.
Formerly Art. 48A, § 486G.
MD Code, Insurance, § 23-403, MD INSURANCE § 23-403
Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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