H-3466.1 _______________________________________________
HOUSE BILL 2661
_______________________________________________
State of Washington 52nd Legislature 1992 Regular Session
By Representative Beck
Read first time 01/23/92. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to insurance premium financing; and amending RCW 48.56.090 and 48.56.100.
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)) a twenty percent annual percentage rate per year plus an
((acquisition)) administrative charge of ((ten)) thirty
dollars per premium finance agreement which need not be refunded upon
cancellation or prepayment.
Sec. 2. RCW 48.56.100 and 1969 ex.s. c 190 s 10 are each amended to read as follows:
A
premium finance agreement may provide for the payment by the insured of a minimum
delinquency charge of ((one)) ten dollars to a maximum of
five percent of the delinquent installment but not to exceed ((five)) one
hundred dollars on any installment which is in default for a period of five
days or more.
If the
default results in the cancellation of any insurance contract listed in the
agreement, the agreement may provide for the payment by the insured of a
cancellation charge ((equal to the difference between any delinquency charge
imposed with respect to the installment in default and five)) of thirty
dollars.