A. If any installment under a premium finance agreement is not paid in full within seven days after it is due, Sundays and holidays included, the insurance premium finance company may charge and collect a default charge not to exceed five percent of the installment. The default charge shall be collected only once on any installment.
B. An insurance premium finance company may charge and collect a fee, not in excess of twenty dollars, for each check returned to the insurance premium finance company because the drawer had no account or insufficient funds in the payor bank.
1981, c. 107, § 38.1-740.2; 1986, c. 562; 1994, c. 123.
Structure Code of Virginia
Chapter 47 - Insurance Premium Finance Companies
§ 38.2-4700. What persons deemed insurance premium finance companies
§ 38.2-4701. License required; application; fee
§ 38.2-4702. Investigation of applicant; issuance of license
§ 38.2-4703. Renewal of license
§ 38.2-4704. Suspension, revocation or failure to renew license; imposition of penalty
§ 38.2-4705. Maximum interest rate and maximum service charge on premium finance agreement
§ 38.2-4706. Default charge; bad check charge
§ 38.2-4709. Disposition of license and other fees
§ 38.2-4710. Penalty for engaging in business without license