Washington Code 48.56.090 – Service charge
Current as of: 2023 | Check for updates
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(1) A premium finance company shall not charge, contract for, receive, or collect a service charge other than as permitted by this chapter.
Terms Used In Washington Code 48.56.090
- Contract: A legal written agreement that becomes binding when signed.
- Premium finance agreement: means an agreement by which an insured or prospective insured promises to pay to a premium finance company the amount advanced or to be advanced under the agreement to an insurer or to an insurance producer in payment of premiums on an insurance contract together with a service charge as authorized and limited by this chapter and as security therefor the insurance premium finance company receives an assignment of the unearned premium. See Washington Code 48.56.020
(2) The service charge is to be computed on the balance of the premiums due (after subtracting the down payment 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.
(3) The service charge shall be a maximum of ten dollars per one hundred dollars per year plus an acquisition charge of ten dollars per premium finance agreement which need not be refunded upon cancellation or prepayment.