Code of Maryland Regulations
Title 31 - MARYLAND INSURANCE ADMINISTRATION
Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE
Chapter 31.13.01 - Standards for Credit Life and Credit Health Insurance
Section 31.13.01.04 - Definitions

(a) An amount that decreases by substantially equal periodic payments; and

(b) A final installment amount that is larger than any one of the periodic payments.

(a) Cash loans not secured by real estate made by banks;

(b) Cash loans made by credit unions;

(c) Cash loans not secured by real estate made by creditors other than banks and credit unions;

(d) Cash loans secured by real estate made by banks;

(e) Cash loans secured by real estate made by creditors other than banks and credit unions;

(f) Production credit association and other agricultural loans;

(g) Installment sales finance contracts; or

(h) Revolving charge agreements, credit card accounts, and open-end credit other than credit union accounts.

(a) Commissions as a percentage of, or otherwise based on, premiums or amounts of insurance sold.

(b) Retrospective or refund rate credits, except credits on creditor paid insurance.

(c) Dividends, except dividends on creditor paid insurance.

(d) Commissions or any other form of compensation or remuneration for reinsurance ceded or assumed.

(e) Service fees or administrative fees.

(f) Consulting fees.

(g) Expense allowances.

(h) Gifts.

(i) Expense for vacations or travel other than travel for training purposes or attendance at conventions.

(j) Value of electronic data-processing equipment or services furnished.

(k) Allowances or subsidies for rent, payroll, advertising, telephone, or other purposes.

(l) Advertising provided by the insurer.

(m) Supplies, excluding application, reporting and claim forms, envelopes for transmitting the forms, and brochures, rate books, and rate charts related to the insurer's credit life or credit health insurance.

(n) Dividends, profits, capital gains, commissions, or other benefits which may be reasonably anticipated under reinsurance agreements with any unauthorized reinsurer affiliated with or controlled by a licensed agent or broker, a creditor, or an affiliate, corporate parent, subsidiary, associate, director, officer, active or retired employee, or other representative of the creditor or the licensed insurance agent. An unauthorized reinsurer does not include any insurer authorized to do business in this State or any insurer qualified under Insurance Article, § 13-116, Annotated Code of Maryland, or any insurer meeting the qualifications of a nonadmitted accredited reinsurer.

(o) Services, including an amount paid to an employee of the insurer specifically for services provided to a creditor or affiliate of the creditor if the services are normally performed outside the home office of the insurer, but not including services performed by account executives or liaison personnel of the insurer who visit the offices of the creditor at occasional intervals and who are regular salaried officers or employees of the insurer and who receive no commission or other compensation directly dependent upon the amount of business obtained.

(p) Value of training programs for employees of the creditor or agent, excluding training of employees provided solely in connection with a program of credit life or credit health insurance for the purpose of acquainting the creditor's employees with administrative procedures of the insurer when the salary of the employees during the training period is paid by the creditor.

(q) Rental by the insurer of space or equipment from the agent or creditor, excluding rentals not related to any insurance transaction on terms approved by the Commissioner;

(r) Commission or some other form of compensation or remuneration in excess of what otherwise would be payable in connection with the sale of allied lines of insurance or other business, such as credit property insurance and maintenance warranties.

(s) Profit sharing plans.

(t) Bonuses.

(u) Finders fees.

(v) Offers of share ownership in an agency or corporation at less than the fair market value.

(a) For a period less than the entire term of the loan; and

(b) If the debtor is disabled as defined by the policy.

(a) "Policy year", in the case of a group policy, means the period between a policy anniversary and the next succeeding policy anniversary.

(b) "Policy year", in the case of individual policies, means a calendar year, or a period of 12 consecutive months beginning from an anniversary of the opening of an account, as the insurer may elect.