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 […]
Section 23-308 – Dishonored Check Fee
A premium finance company may charge a dishonored check fee, which may not exceed $25, for actual expenses incurred in the processing of a dishonored check.
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 […]
Section 23-310 – Perfection of Premium Finance Agreement as Secured Transaction
Filing of a premium finance agreement is not needed to perfect the validity of the premium finance agreement as a secured transaction as against creditors, subsequent purchasers, pledgees, encumbrancers, trustees in bankruptcy or any other insolvency proceeding under any law, or anyone having the status or power of any of those persons, their successors, or […]
Section 23-311 – Reinstatement of Policy — Payment of Fee
A premium finance company is not required to reinstate a policy if: (1) the insurer requires a reinstatement fee, as authorized under § 27–216(b)(5) of this article, to be paid by the insured; and (2) the insured does not timely pay the reinstatement fee.
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 23-302.2 – 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 23-303 – 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 23-304 – 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 23-305 – Initial Service Fee
(a) A premium finance company may charge an initial service fee, which may not exceed $20, for actual expenses. (b) The initial service fee may not be refunded on cancellation or repayment.