2013 Maryland Code
INSURANCE
§ 23-301 - Requirements for premium finance agreements


MD Ins Code § 23-301 (2013) What's This?

§23-301.

(a) (1) A premium finance agreement shall be dated and signed by or on behalf of the insured.

(2) 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; and

(vii) the electronic payment fee.

(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.

(d) A premium finance agreement may provide for additional insurance premiums to be financed and added to the initial premium finance agreement.

§ 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.

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