(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.
Structure Maryland Statutes
Subtitle 5 - Prohibited Acts; Penalties
Section 23-501 - Maif Add-on Coverage as Condition of Financing Premium
Section 23-502 - Splitting Fees
Section 23-503 - Inducement to Obtain Multiple Initial Service Fees
Section 23-504 - Excess Charges
Section 23-505 - Failure to Pay Delinquency and Collection Charge