A premium finance agreement may provide for the payment by the insured of the delinquency charge of $1.50 to a maximum of five percent of the delinquent installment which is in default for a period of five days or more. If the default results in the cancellation of any insurance contract listed in the agreement, the agreement may provide for the payment by the insured of a cancellation charge of $5.00 in the case of a consumer insurance premium finance agreement and $15.00 in the case of a commercial insurance premium finance agreement.
Structure Code of Alabama
Chapter 40 - Insurance Premium Finance Companies.
Section 27-40-1 - Definitions.
Section 27-40-2 - Exemptions From Chapter.
Section 27-40-3 - Licenses - Required; Fees; Information to Be Furnished Commissioner.
Section 27-40-4 - Licenses - Investigation and Qualifications of Applicant; Issuance.
Section 27-40-5 - Licenses - Suspension or Revocation.
Section 27-40-6 - Books and Records.
Section 27-40-7 - Promulgation and Enforcement of Rules and Regulations.
Section 27-40-8 - Contents and Style of Premium Finance Agreement.
Section 27-40-9 - Service Charges; Prepayment of Obligation.
Section 27-40-10 - Delinquency and Cancellation Charges.
Section 27-40-11 - Procedure for Cancellation of Insurance Contract Upon Default.
Section 27-40-12 - Return of Gross Unearned Premiums Upon Cancellation of Contract.
Section 27-40-13 - Filing of Agreement.
Section 27-40-14 - Exclusive Jurisdiction of Department of Insurance.
Section 27-40-17 - Notification of Existence of Premium Finance Agreement.
Section 27-40-18 - Delivery of Copy of Premium Finance Agreement to Insured.