(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.