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                             ENGROSSED HOUSE BILL 2661

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State of Washington              52nd Legislature             1992 Regular Session

By Representative Beck

Read first time 01/23/92.  Referred to Committee on Financial Institutions & Insurance.Increasing the charges for insurance premium financing.

     AN ACT Relating to insurance premium financing; and amending RCW 48.56.090.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     Sec. 1.  RCW 48.56.090 and 1969 ex.s. c 190 s 9 are each amended to read as follows:

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

     (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)) The service charge in a premium finance agreement shall not exceed one and one-half percent per month on the outstanding unpaid principal balance. The company may also charge and collect a nonrefundable administrative fee not exceeding thirty dollars per premium finance agreement.