(1) A premium finance company shall not charge, contract for, receive, or collect a service charge other than as permitted by the subtitle.
(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.

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Terms Used In Kentucky Statutes 304.30-090

  • Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
  • Contract: A legal written agreement that becomes binding when signed.
  • Year: means calendar year. See Kentucky Statutes 446.010

(3) The service charge shall be a maximum of twelve dollars ($12) per one hundred dollars ($100) per year plus an additional charge of fifteen dollars ($15) per premium finance contract which need not be refunded upon cancellation or prepayment.
Effective: July 15, 1986
History: Amended 1986 Ky. Acts ch. 71, sec. 1, effective July 15, 1986. — Created
1970 Ky. Acts ch. 301, subtit. 30, sec. 9, effective June 18, 1970.