If, within 15 business days after the date of written notice from a financial institution that the initial down payment for the coverage being financed has been dishonored, an insurer receives notice of the dishonor from an insurance producer or premium finance company, there is no valid insurance contract or insurance contracts, and the policy shall be voided.
Structure Maryland Statutes
Subtitle 4 - Cancellation of Insurance Contract Under Power of Attorney
Section 23-401 - Compliance With Subtitle Required
Section 23-401.1 - Notice to Insured
Section 23-402 - Notice of Intent to Cancel
Section 23-403 - Cancellation of Insurance Contract
Section 23-403.1 - Effect of Dishonored Down Payment
Section 23-404 - Notice to Third Parties of Cancellation
Section 23-405 - Return of Premium After Cancellation
Section 23-406 - Limitation on Collection After Cancellation