Section 23-402 – Notice of Intent to Cancel
(a) At least 10 days before canceling an insurance contract, a premium finance company shall deliver or mail to the insured written notice of intent to cancel the insurance contract unless the defaulted installment payment is received within the 10–day notice period. (b) For an automobile liability insurance contract, the notice of intent to cancel shall include […]
Section 23-403 – Cancellation of Insurance Contract
(a) (1) After the end of the notice period under § 23–402(a) of this subtitle, the premium finance company may cancel the insurance contract by submitting to the insurer a notice of cancellation that specifies the effective date of the cancellation. (2) (i) The premium finance company shall deliver or mail a copy of the notice of cancellation to […]
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 […]
Section 23-403.1 – Effect of Dishonored Down Payment
If, within 15 business days after the date of written notice from a financial institution that the initial down payment for the coverage being financed has been dishonored, an insurer receives notice of the dishonor from an insurance producer or premium finance company, there is no valid insurance contract or insurance contracts, and the policy […]
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.
Section 23-404 – Notice to Third Parties of Cancellation
(a) All statutory, regulatory, and contractual restrictions that provide that the insured may not cancel an insurance contract unless notice is given to a governmental agency, mortgagee, or other third party shall apply to a cancellation made under this subtitle. (b) If an insurer is required under subsection (a) of this section to give notice on behalf […]
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 […]
Section 23-405 – Return of Premium After Cancellation
(a) (1) Notwithstanding any other provision of this article, when an insurance contract is canceled, whether by a premium finance company, an insurer, or an insured, the insurer shall return any gross unearned premiums that are due under the insurance contract, computed pro rata, and excluding any expense constant, administrative fee, or any nonrefundable charge filed with […]
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 […]
Section 23-406 – Limitation on Collection After Cancellation
Whenever an insurance contract is canceled in accordance with this subtitle, the premium finance company may not collect from an insured an amount due under the premium finance agreement that is less than $5.