reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 6 - Unsatisfied Claims › Section 20-609 - Subrogation to Rights of Claimant

(a)    Whenever the Fund makes payment in an action brought or claim made under this subtitle, the Fund shall be subrogated to the cause of action of the claimant receiving the payment against the driver or owner of the motor vehicle by which the accident was occasioned.
(b)    The Fund:
(1)    if the identity and whereabouts are established of the person that is the driver or owner, may bring an action against that person for the amount of damage the claimant sustains; and
(2)    may recover that amount out of any money payable with respect to death or injury under any policy in force when the accident occurred.
(c)    If the amount recovered in an action under subsection (b) of this section is greater than the amount paid out of the Fund, the Fund:
(1)    first, shall reimburse itself as provided in § 20-608 of this subtitle; and
(2)    second:
(i)    shall collect and pay the unpaid balance to the claimant; or
(ii)    shall assign and transfer to the claimant any judgment, note, or other right, interest, or cause of action that the Fund has against the uninsured driver or owner.
(d)    Notwithstanding any other statute of limitations, the Fund may bring an action against the person that is the driver or owner within 6 months after the identity and whereabouts of that person are established.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 6 - Unsatisfied Claims › Section 20-610 - Findings and Declarations

The General Assembly finds and declares that:
(1)    there is an unacceptably large number of uninsured motorists in the State;
(2)    uninsured motorists cause harm to insured drivers by increasing the cost of automobile insurance for everyone required to purchase uninsured motorist coverage;
(3)    uninsured motorists are a financial drain on the State and require substantial funding for the Uninsured Division of the Fund to cover legitimate claims of innocent pedestrians, passengers, and drivers who are injured by uninsured motorists;
(4)    to encourage uninsured motorists to become insured, the law for many years has provided financial penalties to be imposed on uninsured motorists and a substantial number of penalties are issued every year;
(5)    to further address the rate of uninsured motorists, the General Assembly passed legislation (Chapter 446 of the Acts of 2016) to require the Motor Vehicle Administration to conduct a program that waived substantial portions of delinquent uninsured motorist fines as an incentive for eligible participants to become insured, but less than 4% of eligible uninsured motorists actually entered the program;
(6)    the General Assembly also passed legislation (Chapter 401 of the Acts of 2016) to require drivers to carry proof of automobile insurance;
(7)    despite these statutory efforts, the rate of uninsured motorists has remained stubbornly high, hovering at about 12% according to the Insurance Research Council;
(8)    it is in the best interests of the State to address the rate of uninsured motorists in the State in a comprehensive and coordinated fashion;
(9)    the Fund was established in 1973 to provide the financial security required under the Maryland Vehicle Law to individuals who are unable to obtain automobile insurance from private insurers;
(10)    in addition to the Fund, motor vehicle liability insurance in the State is provided through a system of private insurers, insurance producers, and independent insurance producers;
(11)    the Uninsured Division is uniquely positioned to reduce the rate of uninsured motorists by conducting outreach and incentivizing, educating, and encouraging uninsured motorists to obtain automobile insurance from private insurers or the Fund; and
(12)    the effort to reduce the rate of uninsured motorists would be greatly enhanced by making the Uninsured Division the primary State agency with responsibility to conduct outreach and incentivize, educate, and encourage uninsured motorists to become insured.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 6 - Unsatisfied Claims › Section 20-611 - Uninsured Motorist Education and Enforcement Fund

(a)    In this section, “Uninsured Motorist Fund” means the Uninsured Motorist Education and Enforcement Fund.
(b)    There is an Uninsured Motorist Education and Enforcement Fund.
(c)    The purpose of the Uninsured Motorist Fund is to provide funding for the education of drivers about, and the enforcement of, the security requirements for motor vehicles under the Maryland Vehicle Law.
(d)    The Uninsured Division shall administer the Uninsured Motorist Fund.
(e)    The Uninsured Motorist Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(f)    The Uninsured Motorist Fund consists of:
(1)    revenues deposited to the Uninsured Motorist Fund under § 17–104.2 of the Transportation Article;
(2)    interest and investment earnings of the Uninsured Motorist Fund; and
(3)    any other money from any other source accepted for the benefit of the Uninsured Motorist Fund.
(g)    Money in the Uninsured Motorist Fund shall be used solely for:
(1)    the administration of the Uninsured Motorist Fund; and
(2)    the education of drivers and the public about:
(i)    the security requirements under the Maryland Vehicle Law; and
(ii)    the sources of automobile insurance in the State, including private insurers and the Fund.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 6 - Unsatisfied Claims › Section 20-613 - Payment of Premium in Installments

An applicant for a policy from the Fund who is participating in the Program under § 20–612 of this subtitle may:
(1)    be considered by the Fund to have met the requirements of § 20–502(a)(3) of this title; and
(2)    pay the premium for the policy in installments in accordance with § 20–507(g)(1)(ii)1B of this title, regardless of the amount of the premium.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 6 - Unsatisfied Claims › Section 20-614 - Contacting Owner Whose Registration Has Been Suspended

(a)    If the Uninsured Division receives information from the Motor Vehicle Administration as required under § 17–106 of the Transportation Article regarding an owner of a vehicle who has been notified by the Motor Vehicle Administration that the registration of the vehicle has been suspended, the Uninsured Division may not, in any fashion, contact the owner until at least 60 days after the effective date of the final termination or lapse of the required security, as reported to the Motor Vehicle Administration by an insurer.
(b)    If the Uninsured Division uses the information received from the Motor Vehicle Administration under § 17–106 of the Transportation Article to contact an owner, the Uninsured Division shall send a notice to the owner that:
(1)    provides the website addresses of the Motor Vehicle Administration, the Fund, and the Administration where the owner may find contact information for insurers that write motor vehicle liability insurance in the State and other information about motor vehicle liability insurance; and
(2)    advises the owner that the owner may contact the owner’s insurance producer, if any, or the owner’s prior insurer to determine whether motor vehicle liability insurance may be placed for the owner by the insurance producer or the insurer.
2023 Maryland Statutes › Insurance › Title 20 - Maryland Automobile Insurance Fund › Subtitle 7 - Prohibited Acts; Penalties › Section 20-701 - Filing False Notice or Document

(a)    A person may not knowingly file with the Fund a notice or document required under this title that is false or that contains a material misstatement of fact.
(b)    A person that violates this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500 or imprisonment not exceeding 30 days or both.
2023 Maryland Statutes › Insurance › Title 21 - Surety Insurance › Section 21-101 - Authority of Surety Insurers to Execute Bonds

(a)    A surety insurer qualified to act as surety or guarantor under this article may execute:
(1)    a bond, undertaking, recognizance, or other obligation that is required or allowed to be made, given, tendered, or filed with a surety by law or in the charter, ordinances, rules, or regulations of a municipal corporation, board, body, organization, court, judge, or public officer; and
(2)    a guaranty of the performance of an act, duty, or obligation, or the refraining from an act, that is required or allowed to be guaranteed.
(b)    The execution by a qualified surety insurer of a bond, undertaking, recognizance, obligation, or guaranty is in full compliance with each requirement of each law, charter, ordinance, rule, or regulation that:
(1)    the bond, undertaking, recognizance, obligation, or guaranty shall be executed by a surety; or
(2)    the surety shall be a resident, householder, or freeholder, or either or both, or shall have any other qualifications.
(c)    Each court, judge, department head, board, body, municipal corporation, and public officer shall accept a bond, undertaking, recognizance, obligation, or guaranty executed by a qualified surety insurer and treat it as conforming to and fully complying with each requirement of each applicable law, charter, ordinance, rule, or regulation.
(d)    A surety insurer may be released from its liability on a bond, undertaking, recognizance, obligation, or guaranty executed under subsection (a) of this section on the same terms and conditions provided by law for the release of an individual surety.
2023 Maryland Statutes › Insurance › Title 21 - Surety Insurance › Section 21-102 - Evidence of Qualification to Be Sole Surety

A certificate of authority, or certified copy of a certificate of authority, issued by the Commissioner to a surety insurer shall be accepted as evidence of qualification to become sole surety on a bond, undertaking, recognizance, or other obligation required or allowed by law, or in the charter, ordinances, rules, or regulations of a municipal corporation, board, organization, court, judge, or public officer, without further proof or qualification regarding solvency, credit, or financial sufficiency to act as a surety.
2023 Maryland Statutes › Insurance › Title 21 - Surety Insurance › Section 21-103 - Failure to Pay Bail Bond Judgment; Penalties

(a)    A surety insurer that is removed by the District Court from the list of surety insurers eligible to post bonds with the court because that surety insurer failed to timely resolve or satisfy one or more bail bond forfeitures appearing on the District Court’s list of absolute bond forfeitures in default shall be subject to the penalties under § 4–113 of this article.
(b)    A surety insurer that is precluded or removed by a circuit court from the list of surety insurers eligible to post bonds with any circuit court because that surety insurer failed to timely resolve or satisfy one or more bail bond forfeiture judgments shall be subject to the penalties under § 4–113 of this article.
(c)    Within 14 days after the failure of a surety insurer to resolve or satisfy all bond forfeitures in default by the District Court’s or circuit court’s deadline, the clerk of the applicable court shall notify the Commissioner, in writing, of the name of that surety insurer and each bond forfeiture that was not resolved or satisfied by the applicable court’s deadline.
2023 Maryland Statutes › Insurance › Title 22 - Title Insurance › Section 22-101 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    (1)    “Abstract of title” means a representation of the state of title to property based on a review of the records that impart constructive notice relating to title to property in the State.
(2)    “Abstract of title” includes a report of title and any other written or electronically created or preserved representation of the state of title to property.
(c)    (1)    “Title insurance commitment” means a written statement of the terms and conditions on which a title insurer is willing to issue a policy of title insurance if the title insurer accepts a premium for the policy.
(2)    “Title insurance commitment” includes a binder.
2023 Maryland Statutes › Insurance › Title 22 - Title Insurance › Section 22-103 - Notice to Buyer About Title Insurance

(a)    Except as provided in subsection (d) of this section, when, in connection with a real estate transaction that involves a purchase money mortgage or deed of trust on land in the State, a title insurer accepts a premium for a policy that insures the title to the property or the title insurer, its agent, or employee accepts a premium for mortgagee title insurance, the person first accepting the premium:
(1)    shall insert the name of each insured in the title insurance commitment for the title insurance; and
(2)    immediately on receipt of the premium, shall deliver to the buyer or agent or attorney of the buyer written notice:
(i)    of the name of each insured under the policy;
(ii)    of the face amount of the policy;
(iii)    of the buyer’s right and opportunity to obtain simultaneous title insurance in the buyer’s favor;
(iv)    of the additional premium that will be required for purchase of simultaneous title insurance in the buyer’s favor;
(v)    that the buyer’s title insurance will be subject only to the contingencies and conditions contained in the title insurance commitment and policy;
(vi)    of the buyer’s right to review the title insurance commitment or a sample of the form of policy in which the contingencies and conditions will be inserted;
(vii)    that contains a clear statement of the contingencies that must be satisfied to make the buyer’s policy effective, if the buyer’s policy is not effective on payment of the premium; and
(viii)    that the title insurance commitment or sample of the form of policy into which the contingencies and conditions for insuring will be inserted:
1.    does constitute a statement of the terms and conditions on which the title insurer is willing to issue its policy of title insurance if the title insurer accepts a premium for the policy;
2.    is not a representation as to the state of title; and
3.    does not constitute an abstract of title.
(b)    Before disbursing any funds, the person required to give notice under subsection (a) of this section shall obtain from the buyer, at the time the person delivers the notice, a statement in writing that the buyer has received the notice described in subsection (a) of this section and that the buyer wants or does not want owner’s title insurance.
(c)    (1)    The person required to give notice under subsection (a) of this section shall retain the original signed statement of receipt required by subsection (b) of this section and a copy of the notice required by subsection (a) of this section for 3 years.
(2)    The statement of receipt and notice shall be available for inspection by the Commissioner on request.
(d)    This section does not apply to a real estate transaction involving a mortgage or deed of trust securing an extension of credit made:
(1)    solely to acquire an interest in or to carry on a business or commercial enterprise; or
(2)    to any business or commercial organization.
2023 Maryland Statutes › Insurance › Title 22 - Title Insurance › Section 22-104 - Title Insurance Commitment or Sample of the Form of Policy

(a)    A title insurance commitment or sample of the form of policy into which the contingencies and conditions for insuring will be inserted:
(1)    constitutes a statement of the terms and conditions on which a title insurer is willing to issue a policy of title insurance if the title insurer accepts the premium for the policy;
(2)    is not a representation as to the state of title; and
(3)    does not constitute an abstract of title.
(b)    The rights, duties, and responsibilities applicable to the preparation or issuance of an abstract of title do not apply to the issuance of a title insurance commitment or sample of the form of policy into which the contingencies and conditions for insuring will be inserted.
(c)    A title insurance commitment or sample of the form of policy into which the contingencies and conditions for insuring will be inserted shall contain the following statement:
“This document constitutes a statement of the terms and conditions on which a title insurer is willing to issue a policy of title insurance if the title insurer accepts the premium for the policy. It is not a representation as to the state of title and does not constitute an abstract of title.”.
2023 Maryland Statutes › Insurance › Title 22 - Title Insurance › Section 22-105 - Deposits of Trust Money

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Beneficial owner” means a person, other than the buyer in a real estate transaction, for whose benefit a title insurer or its agent is entrusted to hold trust money.
(3)    “Trust money” means a deposit, payment, or other money that a person entrusts to a title insurer or its agent to hold for the benefit of a buyer in a real estate transaction or for a beneficial owner, in connection with an escrow, settlement, closing, or title indemnification.
(b)    A title insurer or its agent shall pool and commingle trust money received from clients or beneficial owners in connection with escrows, settlements, closings, or title indemnifications if, in the judgment of the title insurer or its agent, a separate deposit of the trust money would generate interest in an amount not greater than $50 or the cost of administering a separate account.
(c)    At least quarterly, the financial institution in which a commingled account is maintained under this section shall pay the interest earned on the account, less any service charges of the financial institution, to the Maryland Affordable Housing Trust to enhance the availability of affordable housing throughout the State as provided in § 10–102 of the Housing and Community Development Article.
(d)    Trust money required to be commingled under subsection (b) of this section in connection with a real estate transaction shall be deposited and maintained until disbursed in accordance with the transaction:
(1)    in a financial institution located in the State; or
(2)    subject to approval of the Commissioner of Financial Regulation, in a financial institution outside the State that complies with the requirements of this subtitle.
(e)    A title insurer or its agent does not violate, and may not be charged by the Commissioner with a violation of, any ethical or legal duties by placing trust money in an account under subsection (b) of this section with the interest paid to the Maryland Affordable Housing Trust under subsection (c) of this section.
(f)    Except for trust money that a title insurer or its agent places in a commingled account under subsections (b) and (c) of this section, and subject to regulations of the Commissioner, trust money in the possession of the title insurer or its agent may be deposited in any other deposit or investment vehicle:
(1)    specified by the client or beneficial owner; or
(2)    as agreed on by the client or beneficial owner and the title insurer or its agent.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 1 - Definitions; General Provisions › Section 23-101 - Definitions

(a)    In this title the following words have the meanings indicated.
(b)    “Actuarial method” has the meaning stated in § 12–1009 of the Commercial Law Article.
(c)    (1)    “Premium finance agreement” means an agreement:
(i)    by which an insured or prospective insured promises to pay a premium finance company the amount advanced or to be advanced under the agreement, together with interest and a service fee, to an insurer or an insurance producer in payment of premiums; and
(ii)    that contains an assignment of or is otherwise secured by the unearned premium or refund obtainable from the insurer on cancellation of the insurance contract.
(2)    “Premium finance agreement” does not include a premium financed in connection with a time sale of goods or services or an extension of credit without charge by an insurance producer.
(d)    “Premium finance company” means a person that engages in the business of entering into or accepting premium finance agreements.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 1 - Definitions; General Provisions › Section 23-102 - Scope of Title

No bank, savings bank, trust company, savings and loan association, credit union, industrial finance company, small loan company, or other similar organization that is regulated under the laws of the State or the United States nor any bank, savings bank, trust company, savings and loan association, or credit union that is organized in another state and has a branch in this State nor any authorized insurer that does not engage in the insurance financing business is subject to this title.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 1 - Definitions; General Provisions › Section 23-103 - Investigations and Examinations

(a)    The Commissioner may conduct investigations and examine the books, records, and accounts of a person under this title to the same extent as is authorized with respect to insurers under this article.
(b)    The expense of an examination shall be paid by the person examined as provided in § 2-208 of this article.
(c)    The Commissioner or an examiner shall make a complete report of each investigation or examination as provided in § 2-209 of this article.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 2 - Registration › Section 23-202 - Financial Requirements

(a)    To engage in business as a premium finance company in the State, each premium finance company shall elect to:
(1)    maintain a net worth of at least $250,000 calculated under generally accepted accounting principles;
(2)    file with the Commissioner an irrevocable letter of credit in the amount of $50,000 issued by a financial institution;
(3)    deposit with the State Treasurer cash in the amount of $50,000; or
(4)    file with the Commissioner a bond that:
(i)    is in favor of the State;
(ii)    is in the penal sum of $50,000;
(iii)    is executed by an authorized surety insurer; and
(iv)    is conditioned that the premium finance company will account for and pay over to the person entitled to receive it all money belonging to the person that comes into the possession of the premium finance company, including unearned premiums due to an insured and unearned commissions due to an insurer.
(b)    A bond shall remain in force until the surety insurer is released from liability by the Commissioner or until the bond is canceled by the surety insurer.
(c)    The total liability of the surety insurer under a bond may not exceed the penal sum of the bond.
(d)    (1)    (i)    The surety insurer may cancel a bond after filing written notice with the Commissioner at least 30 days before the effective date of the cancellation.
(ii)    A cancellation under this paragraph does not affect any liability that accrued before the cancellation.
(2)    After notification of the cancellation of the bond, the premium finance company shall act promptly to replace the bond.
(3)    If the premium finance company fails to act promptly to replace the bond, the Commissioner shall deny, suspend, revoke, or refuse to renew the registration of the premium finance company until the required bond is filed.
(e)    If, at any time, the premium finance company fails to comply with subsection (a) of this section, the Commissioner shall deny, suspend, revoke, or refuse to renew the registration of the premium finance company until the premium finance company complies with subsection (a) of this section.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 2 - Registration › Section 23-203 - Applications for Registration

(a)    An applicant for initial registration shall:
(1)    file with the Commissioner:
(i)    an application on the form that the Commissioner requires;
(ii)    in the case of a corporation or limited liability company, a certificate of good standing issued by the State Department of Assessments and Taxation;
(iii)    evidence of compliance with § 23-202 of this subtitle;
(iv)    the form of the premium finance agreement to be used; and
(v)    the finance charge, initial service fee, and all other fees and charges to be applied; and
(2)    pay to the Commissioner an application fee of $250.
(b)    The registration application shall include the following information:
(1)    the name, business address, and telephone number of the premium finance company; and
(2)    the name and business address of each officer, director, principal, and partner of the premium finance company.
(c)    A registration application may require the applicant to disclose the identity, trade names, and names of managers and owners of the applicant.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 2 - Registration › Section 23-204 - Issuance or Denial of Registration

(a)    When an applicant complies with the filing requirements and pays the registration fee to the Commissioner in accordance with § 23-203 of this subtitle, the Commissioner shall determine whether the applicant meets the requirements of this title.
(b)    The Commissioner shall deny registration to an applicant if the Commissioner determines that the applicant has submitted an incomplete registration.
(c)    The Commissioner shall register each applicant that meets the requirements of this title.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 2 - Registration › Section 23-205 - Term and Renewal of Registration

(a)    A registration expires on the first July 1 after its effective date unless it is renewed as provided in this section.
(b)    Before a registration expires, the registrant may renew it for an additional 1-year term if the registrant:
(1)    files with the Commissioner:
(i)    a renewal application on the form that the Commissioner requires;
(ii)    in the case of a corporation or limited liability company, a certificate of good standing issued by the State Department of Assessments and Taxation; and
(iii)    evidence of compliance with § 23-202 of this subtitle; and
(2)    pays to the Commissioner a renewal fee of $50.
(c)    The Commissioner shall renew the registration of each registrant that meets the requirements of this section.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 2 - Registration › Section 23-206 - Change of Information

(a)    The Commissioner shall require a premium finance company to report, on forms provided by the Commissioner, changes in officers, directors, owners, trade names, principals, partners, business addresses, and telephone numbers within 30 days after a change occurs.
(b)    (1)    A premium finance company shall file all changes to:
(i)    the form of the premium finance agreement used by the premium finance company; and
(ii)    the finance charge, initial service fee, and any other fees and charges applied by the premium finance company.
(2)    A premium finance company may not use a premium finance agreement form or apply a fee or charge unless the filing required under paragraph (1) of this subsection is approved by the Commissioner.
(3)    A premium finance company shall disclose to the Commissioner, on written request, the method or formula used to calculate the finance charges and amount of refund on cancellation of the insurance contract.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 2 - Registration › Section 23-207 - Records

Each premium finance company:
(1)    shall maintain records of its premium finance transactions for at least 3 years after making the final entry with respect to a premium finance agreement;
(2)    shall allow the Commissioner to examine the records; and
(3)    may keep the records in photographic, imaging, microfilm, microfiche, electronic data processing, computer, or facsimile form.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 2 - Registration › Section 23-208 - Denials, Suspensions, Revocations, and Refusals to Renew; Penalties; Responsibility for Acts of Third Parties

(a)    Subject to the hearing provisions of Title 2 of this article, the Commissioner may deny a registration to an applicant or suspend, revoke, or refuse to renew the registration of a registrant if the Commissioner finds that the applicant or registrant has:
(1)    failed to comply with a lawful requirement of the Commissioner under this title;
(2)    violated a provision of this title;
(3)    made a material misstatement in the application for registration;
(4)    engaged in fraudulent or dishonest practices; or
(5)    demonstrated incompetency or untrustworthiness to engage in the business of a premium finance company.
(b)    (1)    Instead of or in addition to suspending, revoking, or refusing to renew a registration, the Commissioner may:
(i)    impose on the registrant a penalty of not less than $25 but not exceeding $1,000 for each violation of this article, up to a maximum of $20,000 in the event of multiple violations; or
(ii)    require that restitution be made by a registrant that violates this title to a person that has suffered financial injury as a result of a violation of this title.
(2)    For purposes of this subsection, restitution means the sum of money that, if paid to a person that suffers financial injury as a result of violation of this title, will restore the person to the same financial position the person would have been in had the violation not occurred.
(c)    (1)    A premium finance company that delegates administration of a premium finance agreement to a third party is responsible for a violation of any provision of this title by the third party in the administration of the premium finance agreement, regardless of the delegation.
(2)    For purposes of this subsection, the following acts by an insurance producer in relation to a premium finance agreement are not considered to be the administration of the premium finance agreement:
(i)    signing a premium finance agreement;
(ii)    accepting payments; or
(iii)    issuing receipts.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 3 - Premium Finance Agreements; Charges and Fees › Section 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.
(2)    Except as provided under subsection (b)(5)(viii) of this section, the printed part of the premium finance agreement shall be in approximately 8–point type and be easily readable by an average individual.
(b)    A premium finance agreement shall contain:
(1)    the name and place of business of the insurance producer negotiating the related insurance contract;
(2)    the name and residence or place of business of the insured as specified by the insured;
(3)    the name and place of business of the premium finance company to which payments may be made;
(4)    an itemized list for each insurance contract or coverage financed under the premium finance agreement that includes:
(i)    the applicable application number, binder number, or policy number;
(ii)    the effective date of the insurance contract or coverage;
(iii)    the name of the company issuing the insurance contract or coverage; and
(iv)    the premium for the insurance contract or coverage; and
(5)    if applicable, the following items:
(i)    the total amount of the premiums;
(ii)    the amount of the down payment;
(iii)    the principal balance (the difference between items (i) and (ii) of this item);
(iv)    the amount of the finance charge;
(v)    the balance payable by the insured (the sum of items (iii) and (iv) of this item);
(vi)    the number of installments required, the amount of each installment expressed in dollars, and the due date or period of each installment;
(vii)    the electronic payment fee; and
(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.
(2)    Additional items may be included to explain the computations made in determining the amount to be paid by the insured.
(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.
(e)    Subject to §§ 23–501.1 and 23–505.2 of this title, a premium finance agreement may include monthly payments for the purchase price of a motor club service contract.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 3 - Premium Finance Agreements; Charges and Fees › Section 23-301.1 - Additional Inclusions

In addition to financing the premium of a surplus lines insurance contract, a premium finance agreement may include any:
(1)    premium receipts tax that a surplus lines broker is required to charge under § 3-324 of this article and pay to the Commissioner under § 3-325 of this article;
(2)    policy fee that a surplus lines broker is allowed to charge under § 27-216 of this article; and
(3)    inspection fee that a surplus lines broker is allowed to charge under § 27-216 of this article.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 3 - Premium Finance Agreements; Charges and Fees › Section 23-301.2 - Assignment of Rights; Use as Collateral

(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.
(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.
(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.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 3 - Premium Finance Agreements; Charges and Fees › Section 23-302 - Copies of Premium Finance Agreements

(a)    A copy of each premium finance agreement or other notice of a premium finance agreement that describes the policy or policies involved shall be given to the agency issuing the policy or policies or to the insurers involved.
(b)    (1)    If a policy is procured through a surplus lines broker licensed in the State, and payment is not made directly to the surplus lines broker or the insurer, a copy of the premium finance agreement or other notice of the premium finance agreement shall be sent to the surplus lines broker by the insurance producer or premium finance company.
(2)    A premium finance company may require an insurance producer who procures premium financing to:
(i)    send to the surplus lines broker the notice required under paragraph (1) of this subsection within 10 business days of the execution of a premium finance agreement; and
(ii)    provide to the premium finance company, within 10 business days of receipt of a policy, the insurer’s name, policy number, and any other information necessary to complete a premium finance agreement.
(c)    When a premium finance agreement is signed, the premium finance company, or the insurance producer, if applicable, shall provide the insured with, or cause the insured to be provided with, a legible copy of the fully completed and executed premium finance agreement.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 3 - Premium Finance Agreements; Charges and Fees › Section 23-302.1 - Financing Additional Premium

(a)    An insured may finance an additional premium if:
(1)    the insured has paid the down payment, if any, required by the premium finance company on the additional premium; and
(2)    the premium finance company delivers or mails a written notice to the insured at the last known address of the insured indicating that:
(i)    there is a revised premium finance agreement; and
(ii)    in the event of default in payment of the revised premium finance agreement, the policy may be canceled.
(b)    An insurer may not delay cancellation for the sole purpose of applying premiums on deposit to any additional premium.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 3 - Premium Finance Agreements; Charges and Fees › Section 23-302.2 - Notice of Additional Premium

If an insurer receives notice of a financed insurance premium, the insurer shall, within 10 business days after its calculation, notify the insured, the insurer’s insurance producer, and premium finance company of any additional premium arising under the financed policy.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 3 - Premium Finance Agreements; Charges and Fees › Section 23-303 - Maximum Charges

(a)    The maximum charges stated in §§ 23-304 and 23-305 of this subtitle shall include all interest, fees, and charges incident to the premium finance agreement and the resulting extension of credit.
(b)    Notwithstanding subsection (a) of this section, delinquency, collection, cancellation, reinstatement, and electronic payment fee charges may be made in accordance with the limitations of §§ 23-306, 23-307, and 23-307.1 of this subtitle.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 3 - Premium Finance Agreements; Charges and Fees › Section 23-304 - Finance Charge

(a)    The finance charge shall be computed:
(1)    on the amount of the entire premium loan advanced, including any taxes or fees that are financed under § 23–301.1 of this subtitle, after subtracting any down payment on the premium loan made by the insured;
(2)    from the inception date of the insurance contract or from the due date of the premium, disregarding any grace period or credit allowed for payment of the premium, through the date when the final installment under the premium finance agreement is payable; and
(3)    in an amount not exceeding the sum of 1.15% for each 30 days of the loan, computed in advance.
(b)    (1)    An insured shall receive a refund of a finance charge that exceeds any amount due under the premium finance agreement if:
(i)    the insurance contract is canceled; or
(ii)    the insured prepays the loan in full at any time.
(2)    The amount of the refund under paragraph (1) of this subsection may be calculated by the actuarial method.
(3)    (i)    A finance charge:
1.    is earned in 30–day increments; and
2.    in accordance with subparagraph (ii) of this paragraph, may be earned on the first day of each 30–day period.
(ii)    If a finance charge is earned on the first day of each 30–day period, the premium finance agreement shall contain a notification that the finance charge is earned on the first day of each 30–day period.
(4)    A premium finance company may not retain more of the finance charge than is earned under this section.
(c)    With respect to commercial automobile, fire, or liability insurance only, a finance charge may be imposed on any unpaid principal balance of the loan remaining after all unearned premiums have been returned if the unearned premiums are less than the unpaid principal balance due to:
(1)    an audit by the insurer resulting in additional premium;
(2)    the application of a minimum premium on a policy;
(3)    an endorsement that is made after a policy is issued and results in additional premium; or
(4)    a lawful delay in canceling an insurance policy that is beyond the control of the premium finance company.
(d)    Notwithstanding any other provision of law, a premium finance company may not use the Rule of 78s in computing a finance charge under this section.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 3 - Premium Finance Agreements; Charges and Fees › Section 23-306 - Delinquency and Collection Charge

(a)    A premium finance agreement may require the insured to pay a delinquency and collection charge on each installment that is in default for a period of not less than 5 days.
(b)    A delinquency and collection charge shall be at least $1, up to a maximum of 5% of the installment in default, but may not exceed:
(1)    $8, with respect to private passenger automobile or personal fire or liability insurance; and
(2)    $100, with respect to commercial automobile, fire, or liability insurance.
(c)    Only one delinquency and collection charge may be collected on an installment, regardless of the period during which the installment remains in default.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 3 - Premium Finance Agreements; Charges and Fees › Section 23-307 - Cancellation Charge; Reinstatement Charge

(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:
(1)    with respect to private passenger automobile or personal fire or liability insurance, equal to the difference between a delinquency and collection charge imposed under § 23–306 of this subtitle with respect to the installment in default and:
(i)    $15 for a default before or during calendar year 2014;
(ii)    $16 for a default during calendar year 2015;
(iii)    $17 for a default during calendar year 2016;
(iv)    $18 for a default during calendar year 2017;
(v)    $19 for a default during calendar year 2018; and
(vi)    $20 for a default during or after calendar year 2019; and
(2)    with respect to commercial automobile, fire, or liability insurance, 5% of the installment, not to exceed an amount equal to the difference between a delinquency and collection charge imposed under § 23–306 of this subtitle with respect to the installment in default and $100.
(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:
(1)    on or after the effective date stated in the notice of cancellation issued to the insurer under § 23–403 of this title; or
(2)    on or after the cancellation effective date stated in the notice of intent to cancel delivered or mailed to the insured under § 23–402 of this title, if:
(i)    the premium finance company has notified the insured in the notice of intent to cancel that a cancellation fee will be imposed on the cancellation effective date stated in the notice of intent to cancel; and
(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.”.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 3 - Premium Finance Agreements; Charges and Fees › Section 23-307.1 - Electronic Payment Fee

(a)    (1)    In this section the following words have the meanings indicated.
(2)    (i)    “Electronic check” means a form of payment in which a fund transfer is made electronically from a payer’s bank account to a premium finance company’s bank account.
(ii)    “Electronic check” does not include a written check that is delivered to a premium finance company or an agent by hand delivery, regular mail, or other form of personal delivery.
(3)    “Electronic payment” includes payment by credit card, debit card, or electronic check.
(b)    A premium finance agreement may require the insured to pay an electronic payment fee if the insured elects to pay a premium finance company by means of an electronic payment.
(c)    A premium finance company may charge an electronic payment fee, which may not exceed $8, for actual expenses incurred by the premium finance company for the electronic payment.
2023 Maryland Statutes › Insurance › Title 23 - Premium Financing › Subtitle 3 - Premium Finance Agreements; Charges and Fees › Section 23-309 - Fee for Obtaining Clue Report

A premium finance company may not charge an insured or a prospective insured any fee for the expense that the premium finance company incurs in obtaining a comprehensive loss underwriting exchange automobile report (CLUE report) regarding the insured or prospective insured if a producer already has charged the insured or prospective insured for obtaining the report.