Md. Code Regs. 31.01.02.08 - Premium Finance Companies

A. The bulletin issued by the Commissioner under Regulation .05 of this chapter may require every premium finance company registered to do business in this State to:

(1) Suspend cancellations of insurance policies for nonpayment of funds due under the premium finance agreement;

(2) Grant affected persons an extension of any and all contractual provisions or other requirements that impose a time limit for an insured to perform any act including the payment of funds; and

(3) Waive additional interest, penalties, fees, or other charges accrued or assessed as the result of the extension required herein.

B. A premium finance company may cancel prospectively, after appropriate notice is issued, any policy if all payments due under the premium finance agreement are not paid within 60 calendar days after the date of the expiration of the bulletin issued pursuant to Regulation .05 of this chapter.

C. A premium finance company may not cancel any insurance policy for failure of the insured to pay interest, penalties, or other charges until 60 calendar days after the date of the expiration of the bulletin issued pursuant to Regulation .05 of this chapter.

Notes

Md. Code Regs. 31.01.02.08