§ 23-301. Requirements for premium finance agreements
West's Annotated Code of MarylandInsuranceEffective: July 1, 2013
Effective: July 1, 2013
MD Code, Insurance, § 23-301
§ 23-301. Requirements for premium finance agreements
(a)(1) A premium finance agreement shall be dated and signed by or on behalf of the insured.
(b) A premium finance agreement shall contain:
(viii) in at least 12-point type, the following statement: “If this agreement is canceled or the loan is prepaid in full before the end of its term, the actuarial method will be used to calculate the earned finance charge. Under this method, most of the finance charge is earned in the early months of the loan term rather than equally in each month. You may request a sample illustration of how the finance charge is earned.”.
(c)(1) The items set out in subsection (b)(5) of this section need not be stated in the sequence in which they appear.
(3) With respect to commercial automobile, fire, or liability insurance, a premium finance agreement may include separate provisions requiring representations, warranties, or other obligations of the insurance producer who sells, solicits, or negotiates the insurance policy, the premiums for which are financed under the premium finance agreement.
(d) A premium finance agreement may provide for additional insurance premiums to be financed and added to the initial premium finance agreement.
Credits
Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 708, § 1, eff. Oct. 1, 1997; Acts 2001, c. 731, § 1, eff. July 2, 2001; Acts 2003, c. 21, § 1, eff. April 8, 2003; Acts 2004, c. 211, § 1, eff. Oct. 1, 2004; Acts 2006, c. 194, § 1, eff. Oct. 1, 2006; Acts 2013, c. 334, § 1, eff. July 1, 2013.
Formerly Art. 48A, § 486C.
MD Code, Insurance, § 23-301, MD INSURANCE § 23-301
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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