# Insurance (GIN)

## Title 23. Premium Financing

### Subtitle 1. Definitions; General Provisions

#### Section 23-101

(a) In this title the following words have the meanings indicated.

(b) "Actuarial method" has the meaning stated in Sec. 12-1009 of the Commercial Law Article.

(c)

  (1) "Premium finance agreement" means an agreement:

    (i) by which an insured or prospective insured promises to pay a premium finance company the amount advanced or to be advanced under the agreement, together with interest and a service fee, to an insurer or an insurance producer in payment of premiums; and

    (ii) that contains an assignment of or is otherwise secured by the unearned premium or refund obtainable from the insurer on cancellation of the insurance contract.

  (2) "Premium finance agreement" does not include a premium financed in connection with a time sale of goods or services or an extension of credit without charge by an insurance producer.

(d) "Premium finance company" means a person that engages in the business of entering into or accepting premium finance agreements.

#### Section 23-102

No bank, savings bank, trust company, savings and loan association, credit union, industrial finance company, small loan company, or other similar organization that is regulated under the laws of the State or the United States nor any bank, savings bank, trust company, savings and loan association, or credit union that is organized in another state and has a branch in this State nor any authorized insurer that does not engage in the insurance financing business is subject to this title.

#### Section 23-103

(a) The Commissioner may conduct investigations and examine the books, records, and accounts of a person under this title to the same extent as is authorized with respect to insurers under this article.

(b) The expense of an examination shall be paid by the person examined as provided in Sec. 2-208 of this article.

(c) The Commissioner or an examiner shall make a complete report of each investigation or examination as provided in Sec. 2-209 of this article.

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Md. Code Ann., Ins. (as displayed at mgaleg.maryland.gov, October 16, 2026)