New York Laws
Article 12-B - Insurance Premium Finance Agencies
568 - Limitation on Service and Other Charges.

(b) In computing the service charge permitted by this subdivision, if
the premium finance agreement is executed later than thirty days after
the inception date, there shall be deducted from the amount of such
service charge an amount which bears the same proportion to such service
charge, as (i) the number of days from the thirtieth day after the
inception date until the day of execution of the premium finance
agreement, bears to (ii) the number of days from the inception date to
the date when the final instalment of the premium finance agreement is
payable. No deduction shall be required under this paragraph, however,
if the amount thereof is less than one dollar. For purposes of this
paragraph the term "inception date" shall mean the inception date of the
insurance contract being financed, or the due date of the premium being
financed (disregarding any period of grace or credit allowed for payment
thereof), which ever shall be earlier.
(c) Such service charge shall be computed on the principal balance of
a premium finance agreement payable in successive monthly instalments
substantially equal in amount for a period of one year. On a premium
finance agreement providing for instalments extending for a period less
than or greater than one year, the service charge shall be computed
proportionately.
(d) When a premium finance agreement provides for unequal or irregular
instalments, the service charge shall be computed at the effective rate
provided for in paragraph (a), having due regard for the schedule of
instalments.
(e) The foregoing charges shall be inclusive of all charges incident
to the premium finance agreement and for the extension of credit
provided for therein.
(f) The foregoing paragraphs of this subdivision four apply if the
premiums under only one insurance contract are advanced or to be
advanced under a premium finance agreement; if premiums under more than
one insurance contract are advanced or are to be advanced under a
premium finance agreement, the service charge shall be computed as if
the premiums under each insurance contract were advanced or to be
advanced under separate premium finance agreements.