§ 7001. Definitions As used in this chapter: (1) “Insurance premium finance company” means a person engaged in the business of entering into insurance premium finance agreements or acquiring insurance premium finance agreements from other insurance premium finance companies. For the purpose of this chapter and section 2201 of this title, insurance premium finance company […]
§ 7002. License required (a) No person shall engage in the business of an insurance premium finance company in the State without first having obtained a license as an insurance premium finance company from the Commissioner. (b) The annual license fee shall be $200.00. Licenses may be renewed from year to year as of July […]
§ 7003. Issuance and renewal of license (a) Upon the filing of an application and the payment of the license fee, the Commissioner shall make an investigation of each applicant and shall issue a license, if the applicant is qualified in accordance with this chapter. If the Commissioner does not so find, he or she […]
§ 7004. Revocation or suspension of license; appeal (a) The Commissioner may revoke or suspend the license of any insurance premium finance company when after investigation the Commissioner finds that: (1) the license issued to such company was obtained by fraud; (2) there was any misrepresentation or material omission in the application for the license; […]
§ 7005. Books and records (a) Every insurance premium finance company shall maintain complete and accurate records of each of its insurance premium finance transactions and these records shall be open to examination and investigation by the Commissioner. The Commissioner may at any time during regular business hours examine such records at any location at […]
§ 7006. Form of insurance premium finance agreement (a) An insurance premium finance agreement shall: (1) be dated and signed by or on behalf of the insured, and the printed portion thereof shall be in at least eight-point type; (2) contain the name and place of business of the insurance agent or broker negotiating the […]
§ 7007. Limitation on interest and other charges (a) An insurance premium finance company shall not charge, contract for, receive, or collect an interest charge or any fee, other than as permitted by this chapter. (b) The interest is to be computed on the balance of the premiums due (after subtracting the down payment made […]
§ 7008. Delinquency and collection charges (a) An insurance premium finance agreement may provide for the payment by the insured of a delinquency charge of $1.00 to a maximum of five percent of the amount of the delinquent installment which is in default for a period of five days or more, whichever is greater. (b) […]
§ 7009. Cancellation of insurance contract upon default (a) When an insurance premium finance agreement contains a power of attorney enabling the insurance premium finance company to cancel any insurance contract or contracts listed in the agreement, the insurance contract or contracts shall not be cancelled by the insurance premium finance company unless such cancellation […]
§ 7010. Return premiums Whenever a financed insurance contract is cancelled, the insurer shall return whatever gross unearned premiums are due under the insurance contract directly to the insurance premium finance company for the account of the insured or insureds as soon as reasonably possible, but in no event shall the period for payment exceed […]
§ 7011. Penalties for violations Any insurance premium finance company who willfully and knowingly violates the provisions of any section of this chapter shall be fined not more than $2,000.00 for each offense or imprisoned not more than five years, or both. Any insurance premium finance agreement, not invalid for any other reason, in the […]
