Government Employees Insurance v. Taylor

For the first time, we are presented with a case requiring a construction of Maryland Code (1957, 1972 Repl. Vol.), Art. 48A, §§ 486A-G, which was designed and enacted by the General Assembly originally in 1964 to regulate insurance premium finance agreements in this State. Very simply stated, a premium finance agreement permits a financial institution (the premium finance company 1 ) to secure the loan it makes to a prospective insured by retaining the power, upon default, to cancel the insurance policy procured through that loan and recover any unearned premium as a credit on the borrower’s…