Maryland Code, INSURANCE 23-301.2
Terms Used In Maryland Code, INSURANCE 23-301.2
- 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.
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
- state: means :
(1) a state, possession, territory, or commonwealth of the United States; or
(2) the District of Columbia. See
(i) assign all rights and obligations under a premium finance agreement to another premium finance company that is registered in the State under this title; or
(ii) pledge a premium finance agreement as collateral for a loan.
(2) If a premium finance company assigns the obligation to service a premium finance agreement to another premium finance company under paragraph (1)(i) of this subsection, the assigning premium finance company shall notify the insured in accordance with subsection (c) of this section:
(i) that the obligation to service the premium finance agreement has been assigned to another premium finance company that is registered in the State under this title; and
(ii) of the name, address, and telephone number of the premium finance company to which the obligation has been assigned.
(b) (1) With respect to commercial automobile, fire, or liability insurance, a premium finance company:
(i) except as provided in paragraph (2) of this subsection, may assign all rights and obligations under a premium finance agreement to another person if the premium finance agreement expressly confers the right to assign all rights and obligations under the premium finance agreement; or
(ii) may pledge a premium finance agreement as collateral for a loan.
(2) A premium finance company that assigns rights and obligations under paragraph (1)(i) of this subsection shall:
(i) retain the obligation to service the premium finance agreement; or
(ii) assign the obligation to service the premium finance agreement to another premium finance company that is registered in the State under this title.
(3) If a premium finance company assigns the obligation to service a premium finance agreement to another premium finance company under paragraph (2)(ii) of this subsection, the assigning premium finance company shall notify the insured in accordance with subsection (c) of this section:
(i) that the obligation to service the premium finance agreement has been assigned to another premium finance company that is registered in the State under this title; and
(ii) of the name, address, and telephone number of the premium finance company to which the obligation has been assigned.
(c) A notice required under subsection (a)(2) or (b)(3) of this section shall be by:
(1) first-class mail; or
(2) if the premium finance company meets the requirements for delivering a notice under § 27-601.2 of this article, electronic means.