§ 23-307. Cancellation or reinstatement charges
West's Annotated Code of MarylandInsuranceEffective: July 1, 2013
Effective: July 1, 2013
MD Code, Insurance, § 23-307
§ 23-307. Cancellation or reinstatement charges
(a) Except as provided in subsection (d) of this section, a premium finance agreement may require the insured to pay a cancellation charge if a default in paying an installment results in the cancellation of an insurance contract listed in the premium finance agreement.
(b) A cancellation charge shall be:
(c) A premium finance company may require the payment of a reinstatement charge that is in place of and in the same amount as the cancellation charge if, after a cancellation charge is imposed in accordance with the requirements of subsection (d) of this section, the insured pays the defaulted installment.
(d) A premium finance agreement may impose a cancellation charge:
(ii) the notice of intent to cancel includes the following statement in 12-point or larger type: “If you do not pay the delinquent amount before the cancellation effective date stated in this notice, at any time within 30 days of the cancellation effective date, your insurance policy is subject to cancellation on the cancellation effective date. This means that if you have a loss on or after the cancellation effective date stated in this notice, you may not have coverage for the loss.”.
Credits
Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 708, § 1, eff. Oct. 1, 1997; Acts 2002, c. 356, § 1, eff. Oct. 1, 2002; Acts 2006, c. 194, § 1, eff. Oct. 1, 2006; Acts 2013, c. 334, § 1, eff. July 1, 2013.
Formerly Art. 48A, § 486F.
MD Code, Insurance, § 23-307, MD INSURANCE § 23-307
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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