31A-21-302 - Premiums.
31A-21-302. Premiums.
(1) Subject to Section 31A-21-310 and Subsection 31A-21-106(1), the policy shallclearly state the amount of the total premium or shall explain in detail how it is calculated. Anyfee, charge, or other consideration that is not part of the premium shall be disclosed andexplained in writing to the insured. The disclosure and explanation shall be clearly stated eitheron the policy, or on the insurer's billing to the insured. The premium need not be contained in acertificate issued under a group policy. This Subsection (1) does not preclude premiumadjustments or changes upon the renewal or endorsement of an existing policy. However, therenewal or endorsement notice shall contain or be accompanied by a statement of the renewal orendorsement premium or credit.
(2) Except as provided in Chapter 23a, Insurance Marketing - Licensing Producers,Consultants, and Reinsurance Intermediaries, no person may charge or receive any considerationfor the insurance policy which is not stated in Subsection (1).
(3) No person may knowingly collect any excessive amount as a premium or any amountfor insurance which is not in the course of processing. Any amount unknowingly collected shallbe returned immediately on learning of the mistake. Prepayment of premiums pursuant to thepolicy is not an excessive collection. Insurance is in the course of processing if an applicationhas been made for it which is being considered by the insurer, even though it has not yet beenaccepted or rejected.
Amended by Chapter 298, 2003 General Session