California Financial Code 18605 – A premium finance agreement shall be in writing and the printed …
A premium finance agreement shall be in writing and the printed portion thereof shall be in at least eight-point type. The agreement shall set forth:
1. The names and addresses of the insured and the company, and the date of the agreement.
Terms Used In California Financial Code 18605
- Charges: as used in this division , include the aggregate interest, fees, bonuses, commissions, brokerage, discounts, expenses, and other forms of costs charged, contracted for, or received by an industrial loan company or any other person in connection with the investigating, arranging, negotiating, procuring, guaranteeing, making, servicing, collecting, or enforcing of a loan, or for forbearance of money, credit, goods, things in action, or any other service or services rendered. See California Financial Code 18007
- company: means a premium finance agency. See California Financial Code 18565
- insured: means the person who has purchased or arranged to purchase an insurance contract and who enters into a premium finance agreement with a premium finance agency. See California Financial Code 18562
- premium finance agreement: means a loan contract, note, agreement or obligation by which an insured agrees to pay to a company in installments the principal amount advanced by the company to an insurer or producer in payment of premium on an insurance contract or contracts, plus charges, with the assignment as security therefor of the unearned premiums, accrued dividends or loss payments, the final installment due date of the agreement not to extend beyond the term of the insurance contract included in the agreement having the latest expiration date. See California Financial Code 18564
- principal balance: means the difference between the amount of the premium and fees charged by the insurer or producer and the downpayment on the premium. See California Financial Code 18566
- Writing: includes any form of recorded message capable of comprehension by ordinary visual means. See California Financial Code 8
2. A description of the insurance contracts for which the premiums are advanced including the total amount of the premiums and fees and a specific breakdown thereof by policies and a general description of coverages.
3. The amount of the downpayment.
4. The cost, if any, for credit life insurance.
5. The principal balance.
6. The finance charges.
7. The unpaid balance.
8. The due date of the first installment.
9. The number, amount and frequency of payment of the installments.
10. A statement that the insured may prepay the full amount due and receive a refund credit of the unearned finance charge, in the manner provided by Section 18629.
(Repealed and added by Stats. 1976, Ch. 964.)