40-2609. Premium finance agreement.
40-2609
40-2609. Premium finance agreement.No premium finance agreement shall be issued or delivered in this stateuntil the form of the same has been filed with the commissioner ofinsurance, nor if the commissioner of insurance gives written noticewithin thirty (30) days of such filing to the licensee proposing toissue such premium finance agreement, showing wherein the form of suchpremium finance agreement does not comply with the requirements of thelaws of this state; but the failure of any licensee to comply with thissection shall not constitute a defense to any action brought on itspremium finance agreement. A premium finance agreement shall: (a) Bedated, signed by or on behalf of the insured, and the printed portionthereof shall be in at least 8-point type,
(b) contain the name and place of business of the insurance agentnegotiating the related insurance contract, the name and residence orthe place of business of the insured as specified by him, the name andplace of business of the premium finance company to which payments areto be made, a description of the insurance contracts involved and theamount of the premium therefor; and
(c) set forth the following itemswhere applicable:
(1) The total amount of the premiums,
(2) the amount of the down payment,
(3) the principal balance (difference between items (1) and (2)),
(4) the annual percentage rate and the dollar amount of the totalcharges (including any additional charge),
(5) the balance payable by the insured (sum of items (3) and (4)),and
(6) the number of installments required, the amount of eachinstallment expressed in dollars, and the due date or period thereof.The items set out in subsection (c) of this section need not be statedin the sequence or order in which they appear in such clause, andadditional items may be included to explain the computations made indetermining the amount to be paid by the insured.
History: L. 1968, ch. 287, § 9; L. 1971, ch. 172, § 1; April 1.