Page:United States Statutes at Large Volume 80 Part 1.djvu/164

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PUBLIC LAW 89-403-APRIL 18, 1966

[80 STAT.

" (b) Every licensee shall preserve its records of such premium finance transactions, including cards used in a card system, or at least three years after making the final entry in respect to any premium finance agreement. The preservation of records m photographic form shall constitute compliance with this requirement. "SEC. 57. POWER To MAKE RULES.—The Superintendent shall have authority to make and enforce such reasonable rules and regulations as may be necessary in making effective the provisions of this chapter, but such rules and regulations shall not be contrary to nor inconsistent with the provisions of this chapter. "SEC. 58. FORM OF PREMIUM FINANCE AGREEMENT.— (a) A premium

finance agreement shall— "(1) be dated, 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 negotiating the related insurance contract, the name and residence or the place of business of the premium finance company to which payments are to be made, a description of the insurance contracts involved and the amount of the premium therefor; and "(3) set forth the following items where applicable: " (A) the total amount of the premiums, " (B) the amount of the downpayment, " (C) the principal balance (the difference between items (A)and(B)), , " (D) the amount of the service charge, " (E) the balance payable by the insured (sum of items (C) and (D)), and " (F) the number of installments required, the amount of each installment expressed in dollars, and the due date or period thereof. " (b) The items set out in clause (3) of subsection (a) need not be stated in the sequence or order in which they appear in such clause, and additional items may be included to explain the computations made in determining the amount to be paid by the insured. "SEC.

Computation.

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59. MAXIMUM SERVICE CHARGE.— (a)

A

premium

finance

company shall not charge, contract for, receive, or collect a service charge other than as permitted by this chapter. tt^]^^ -pj^g, gervlce charge is to be computed on the balance of the premiums due (after sul3tracting the downpayment made by the insured in accordance with the premium finance agreement) from the effective date of the insurance coverage, for which the premiums are being advanced, to and including the date when the final installment of the premium finance agreement is payable. " (c) The service charge shall be a maximum of $6 per $100 per year plus an additional charge of $10 per premium finance contract which need not be refunded upon cancellation or prepayment. "SEC. 60. DELINQUENCY CHARGES.—A premium finance agreement may provide for the payment by the insured of a delinquency charge of | l to a maximum of 5 per centum of the delinquent installment but not to exceed $5 on any installment which is in default for a period of five days or more. "SEC. 61. CANCELLATION or INSURANCE CONTRACT U P O N DEFAULT.—

(a) When a premium finance agreement contains a power of attorney enabling the premium finance company to cancel any insurance contract or contracts listed in the agreement, the insurance contract or contracts shall not be canceled by the premium finance company unless such cancellation is effectuated in accordance with this section.

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