6-1401. Definitions In this chapter, unless the context otherwise requires: 1. " Branch office" means any place of business maintained by a licensee in addition to the principal place of business of a licensee. 2. " Insured" means any person covered under an insurance contract or other evidence of insurance coverage subject to regulation under […]
6-1402. Licensure required; contents of application; fees; nontransferable; branch office permit A. A person shall not engage in the business of a premium finance company in this state without first being licensed as a premium finance company by the deputy director. A person who is not exempt under section 6-1403 and who advertises for, solicits […]
6-1403. Exemptions A. The licensing requirements of this article do not apply to: 1. Any savings and loan association, bank, savings bank, trust company, consumer lender or credit union authorized to do business in this state. 2. Any agent or broker who is licensed by the department and who allows an insured to pay premiums […]
6-1404. Denial, suspension or revocation of licenses and branch office permits A. The deputy director may deny a license to a person or suspend or revoke a license if the deputy director finds that an applicant or licensee: 1. Is insolvent as defined in section 47-1201. 2. Refuses to allow an examination by the deputy […]
6-1405. Issuance of license or branch office permit; license year; requirements A. If no grounds for denial of a license or branch office permit are found to exist, the deputy director shall, within one hundred twenty days of receiving a complete application, grant the application and issue a license or branch office permit to the […]
6-1406. Books and records of premium finance company; access to records A. A licensee shall maintain books, accounts and records as prescribed by the deputy director that will enable the deputy director to determine whether the licensee is complying with this article. B. A licensee shall preserve its books, accounts and records of premium finance […]
6-1407. Removal of place of business A licensee may change the licensed place of business by giving written notice to the deputy director, who shall amend the license accordingly.
6-1408. Annual report of licensee; civil penalty for failure to file A. On or before February 1, the licensee shall annually file a report under oath and in the form prescribed by the deputy director concerning the business and operations during the preceding calendar year. On good cause shown by a licensee, the deputy director […]
6-1409. Effect of revocation, suspension or surrender on preexisting contracts; impairment of contracts A. A revocation, suspension or surrender of any license does not impair or affect the obligation of any preexisting premium finance agreement between any licensee and insured. B. If any provision of this article is amended or repealed in a manner that […]
6-1410. Form of premium finance agreement; notice A. A premium finance agreement shall: 1. Be dated and signed by the insured and the printed portion of the agreement shall be in at least eight-point type. 2. Contain the name, place of business and mailing address of the agent or broker who is negotiating the related […]
6-1411. Disclosure requirements Every licensee shall make available to agents, brokers and managing general agents disclosures as prescribed by title I of the consumer credit protection act (15 United States Code sections 1601 through 1667) in both English and Spanish. All premium finance agreements shall disclose in English and Spanish, in close proximity to the […]
6-1412. Limitation on interest and other charges A. It is unlawful for a licensee to charge, contract for, receive or collect an interest charge other than as permitted by this article. B. The interest is to be computed on the balance of the premiums due, after subtracting the down payment made by the insured in […]
6-1413. Other charges allowed A. A licensee may contract for, and if so contracted for, may collect a service charge for financing or arranging the financing of premiums under the agreement in an amount not to exceed ten dollars for each premium finance agreement. The service charge need not be refunded on cancellation, prepayment or […]
6-1414. Splitting of premium finance agreement prohibited No agent or broker or premium finance company shall induce an insured to become obligated under more than one premium finance agreement for the purpose of obtaining a higher rate of interest than would otherwise be permitted by this chapter or obtaining more than one service charge.
6-1415. Cancellation of insurance contract upon default A. If a premium finance agreement contains a power of attorney enabling the licensee to cancel any insurance contract or contracts listed in the agreement, the insurance contract or contracts shall not be cancelled by the licensee unless the cancellation is in accordance with this section. B. The […]
6-1416. Return premiums A. Except as provided in subsection B, if a financed insurance policy is cancelled by any party, the insurer shall return the gross unearned premiums due under the policy directly to the premium finance company for the account of the insured as soon as reasonably possible, but not more than twenty days […]
6-1417. Servicing of premium finance agreements A. A licensee may receive and disburse monies in the servicing of premium finance agreements. All monies received in the process of servicing these agreements shall be kept separate, distinct and apart from funds belonging to the licensee and shall be deposited with a financial institution located in this […]
6-1418. Exemption from any filing requirements No filing is necessary to perfect the validity of the premium finance agreement as a secured transaction as against creditors, subsequent purchasers, pledgees, encumbrancers, trustees in bankruptcy or their successors or assigns or any other insolvency proceeding under any law.
6-1419. Rules The deputy director may adopt rules necessary for the proper conduct of a premium finance company.
