Current as of: 2010
(a) A premium finance agreement shall:
(1) Be dated and signed by the insured or on behalf of the insured by a power of attorney, and its printed portion shall be in at least eight-point type;
(2) Contain the name and place of business of the insurance agent negotiating the related insurance contract, the name and residence or the place of business of the insured as specified by the insured, the name and place of business of the premium finance company to which payments are to be made, a brief description of the insurance contracts involved and the amount of the premium; and
(3) Set forth the following items where applicable:
(A) The total amount of the premiums;
(B) The amount of the down payment;
(C) The principal balance (the difference between subdivisions (a)(3)(A) and (B));
(D) The amount of the interest;
(E) The balance payable by the insured (sum of subdivisions (a)(3)(C) and (D)); and
(F) The number of installments required, the amount of each installment expressed in dollars, and the due date or period of the installments.
(b) The items set out in subdivision (a)(3) need not be stated in the sequence or order in which they appear in subdivision (a)(3), and additional items may be included to explain the computations made in determining the amount to be paid by the insured. Compliance with the federal Truth In Lending Act, compiled in 15 U.S.C. § 1601 et seq., will satisfy disclosure requirements of this section.
[Acts 1980, ch. 920, § 7.]
Questions & Answers: InsuranceSee also:
U.S. Code Provisions: Insurance
Federal Regulations: Insurance