(a) In this title the following words have the meanings indicated.
(b) “Actuarial method” has the meaning stated in § 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.