§ 58-35-55. Limitations on service charges; computation; minimum charges.
§58‑35‑55. Limitations on service charges; computation; minimumcharges.
(a) An insurancepremium finance company shall not directly or indirectly except as otherwiseprovided by law, impose, take, receive from, reserve, contract for, or chargean insured greater service charges than are permitted by this Article. Noinsurance premium finance company shall be permitted to charge or finance anymembership fees, dues, registration fees, or any other charges except theservice charges provided for in this Article for financing insurance premiumson policies of insurance lawfully placed in this State.
(b) An insurancepremium finance company may, in an insurance premium finance agreement,contract for, charge, receive, and collect a service charge for financing thepremiums under the agreement computed as provided in subsection (c).
(c) The service chargeprovided for in this section shall be computed on the principal balance of theinsurance premium finance agreement from the inception date of the insurance contract,the premiums for which are advanced or to be advanced under the agreementunless otherwise provided under rules and regulations prescribed by theCommissioner, to and including the date when the final installment of theinsurance premium finance agreement is payable, at a rate not exceeding twelvedollars ($12.00) per one hundred dollars ($100.00) per annum; plus anonrefundable origination fee which shall not exceed fifteen dollars ($15.00)per premium finance agreement.
(d) The provisions ofsubsection (c) of this section pertaining to the time from which the servicecharge is calculated apply if the premiums under only one insurance contractare advanced or are to be advanced under an insurance premium financeagreement. If premiums under more than one insurance contract are advanced orare to be advanced under an insurance premium finance agreement, the servicecharge shall be computed from the earlier of the following:
(1) The date that thepremium is advanced on behalf of the insured.
(2) The inception dateof any insurance contract financed on the premium finance agreement.
Only one minimum servicecharge shall apply to each insurance premium finance agreement.
(e) No insurance agentor insurance premium finance company shall induce an insured to becomeobligated under more than one insurance premium finance agreement for thepurpose of or with the effect of obtaining service charges in excess of thoseauthorized by this Article.
(f) A premium serviceagreement may provide for the payment by the insured of a delinquency andcollection charge on each installment in default for a period of not less thanfive days in an amount of one dollar ($1.00) or a maximum of five percent (5%)of such installment, whichever is greater, provided that only one suchdelinquency and collection charge may be collected on any such installmentregardless of the period during which it remains in default. (1963,c. 1118; 1967, c. 824; 1979, 2nd Sess., c. 1083, ss. 1, 2; 1981, c. 394, s. 1;1999‑157, s. 3.)