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§ 13-109. Delivery of policy or certificate to debtor

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 13. Credit Life, Health, and Involuntary Unemployment Benefit Insurance (Refs & Annos)
MD Code, Insurance, § 13-109
§ 13-109. Delivery of policy or certificate to debtor
In general
(a) Except as otherwise provided in this section, the individual policy or group certificate of credit life insurance, credit health insurance, or credit involuntary unemployment benefit insurance shall be delivered to the insured debtor when the indebtedness is incurred.
Delivery of copy of application or notice of proposed insurance
(b)(1) If the individual policy or group certificate is not delivered to the debtor when the indebtedness is incurred, a copy of the application for the policy or a notice of proposed insurance shall be delivered to the debtor when the indebtedness is incurred.
(2) The application for the policy or notice of proposed insurance shall:
(i) be signed by the debtor;
(ii) include:
1. the name and home office address of the insurer;
2. the name of the insured debtor;
3. the premium or amount of payment, if any, paid by the debtor shown separately for credit life insurance, credit health insurance, and credit involuntary unemployment benefit insurance;
4. a brief description of the coverage, including the amount and term of the coverage; and
5. a statement that the proposed insurance becomes effective under § 13-107 of this title on acceptance by the insurer;
(iii) refer exclusively to insurance coverage; and
(iv) be separate from the loan, sale, or other credit statement of account, instrument, or agreement, unless that document sets forth prominently the information required by this paragraph.
(3) If the insurer accepts the insurance, within 30 days after the date the indebtedness is incurred, the insurer shall cause the individual policy or group certificate to be delivered to the debtor.
Insurers not accepting risk
(c) If the named insurer does not accept the risk:
(1) the debtor shall receive an individual policy or group certificate that sets forth the name and home office address of the substituted insurer, if any, and the amount of the premium to be charged; and
(2) an appropriate refund shall be made if the amount of the premium charged by the substituted insurer is less than the premium set forth in the notice of proposed insurance.

Credits

Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 70, § 7, eff. Oct. 1, 1997.
Formerly Art. 48A, § 436G.
MD Code, Insurance, § 13-109, MD INSURANCE § 13-109
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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