1. A. Excess Insurance.

   1. (1) If a policy of credit life or credit health insurance limits the life or health insurance benefits to stated policy maximums, the policy and certificates of insurance issued under a group policy shall provide that if the insured has been charged premiums for insurance in excess of the stated maximums the insurer may terminate the excess insurance and refund all premiums paid by the debtor for the excess insurance.
   2. (2) The notice of termination of the excess insurance shall state that the premium paid by the debtor for the excess coverage shall be refunded to the person entitled to it.
   3. (3) A single premium credit life or credit health insurance policy and certificate shall further provide that excess insurance shall remain in force if the insurer does not terminate the excess insurance within 60 days after the effective date of coverage or if the debtor suffers a covered loss within the 60-day period but before notification by the insurer of termination of the excess coverage.
   4. (4) An outstanding balance credit life or credit health insurance policy and certificate shall further provide that the excess insurance shall be in force for the period for which a premium was charged unless the excess insurance is cancelled before the occurrence of a loss.

2. B. Ineligible Debtor.

   1. (1) Misstatement of Age.

      1. (a) The policy or certificate provisions required by this section do not apply to an ineligible debtor who has misstated the debtor's age.

      2. (b) An ineligible debtor who has misstated the debtor's age is subject to:

         1. (i) For credit life insurance, the policy or certificate provisions required by Regulation .13 of this chapter; or
         2. (ii) For credit health insurance, the policy or certificate provisions required by Regulation .17 of this chapter.
   2. (2) If a debtor's eligibility for credit life or credit health insurance is subject to restrictions based on health, employment, age, or other factors, the policy and certificates of insurance issued under a group policy shall provide that if insurance is issued to an ineligible debtor, including a debtor who has correctly stated the debtor's age as exceeding the stated maximum eligibility age, the insurer may terminate the insurance and refund all premiums paid by the debtor.
   3. (3) The notice of termination of the insurance shall state that the premium paid by the debtor shall be refunded to the person entitled to it.
   4. (4) A single premium credit life or credit health insurance policy and certificate shall further provide that the insurance shall remain in force if the insurer does not terminate the coverage within 60 days after the effective date of coverage or if the debtor suffers a covered loss within the 60-day period but before notification by the insurer of termination of the insurance.
   5. (5) An outstanding balance credit life or credit health insurance policy and certificate shall provide that the insurance shall be in force for the period for which a premium was charged unless the insurance is cancelled with no less than 31 days notice before the occurrence of a loss.

Authority: Commercial Law Article, §12-312 and Title 12, Subtitle 3; Insurance Article, §§2-109, 13-110, 13-111, and 13-112; Annotated Code of Maryland

Effective date: January 1, 1978 (4:25 Md. R. 1940)

Chapter revised at 7:11 Md. R. 1035

Regulations .04 and .21 amended as an emergency provision effective September 1, 1980 (7:14 Md. R. 1345); adopted permanently effective December 30, 1980 (7:24 Md. R. 2256)

Regulations .13 and .17 amended effective January 28, 1985 (12:2 Md. R. 139)

Regulation .13 amended effective August 8, 1988 (15:16 Md. R. 1914)

Regulation .15 amended effective August 8, 1988 (15:16 Md. R. 1914)

Regulation .24D adopted effective August 8, 1988 (15:16 Md. R. 1914)

Regulation .27 amended as an emergency provision effective June 24, 1980 (7:14 Md. R. 1345); adopted permanently effective December 30, 1980 (7:24 Md. R. 2256) This amendment changed the effective date given in the Notice of Final Adoption (see 7:11 Md. R. 1035) from July 1, 1980 to September 1, 1980

Annotation: Regulations .04F(14), .20, and .21, concerning the regulation of maximum commissions, held valid and within the legislative grant of authority to the Insurance Commissioner. Agency quasi-legislative actions are not limited by a recorded administrative record. These regulations and their enabling statute do not violate the Contract Clause of the U.S. Constitution. Automobile Trade Association v. Insurance Commissioner, 292 Md. 15, 437 A. 2d 199 (1981).

Chapter recodified from COMAR 09.30.51 to COMAR 31.13.01 effective September 7, 1998 (25:18 Md. R. 1439)

Regulation .04B amended effective May 15, 2000 (27:9 Md. R. 860)

Regulation .06A amended effective May 15, 2000 (27:9 Md. R. 860)

Regulation .08A, B repealed effective May 15, 2000 (27:9 Md. R. 860)

Regulation .29 adopted effective May 15, 2000 (27:9 Md. R. 860)

Chapter revised effective March 1, 2001 (27:22 Md. R. 2062)

Regulation .04B amended effective October 12, 2015 (42:20 Md. R. 1266); November 7, 2016 (43:22 Md. R. 1223)

Regulation .09A amended effective October 12, 2015 (42:20 Md. R. 1266)

Regulation .13 amended effective October 12, 2015 (42:20 Md. R. 1266)

Regulation .15A, E amended effective June 1, 2016 (43:5 Md. R. 387)

Regulation .17 amended effective October 12, 2015 (42:20 Md. R. 1266)

Regulation .21A amended effective November 7, 2016 (43:22 Md. R. 1223)

Regulation .22C amended effective February 27, 2017 (44:4 Md. R. 256)