Maryland Code, INSURANCE 23-501.1
Current as of: 2023 | Check for updates
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Terms Used In Maryland Code, INSURANCE 23-501.1
- Contract: A legal written agreement that becomes binding when signed.
- Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(a) A premium finance company may not impose any finance charge or other charge on any payment for the purchase price of a motor club service contract.
(b) A premium finance company may not cancel an insurance contract if any payment under the premium finance agreement:
(1) is sufficient to pay the installment due under the premium finance agreement that is related to the insurance contract obligation; but
(2) is not sufficient to cover the amount of the monthly payment for the motor club service contract.