S-4080.1 _______________________________________________
SENATE BILL 6246
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State of Washington 53rd Legislature 1994 Regular Session
By Senators Fraser and Amondson
Read first time 01/18/94. Referred to Committee on Labor & Commerce.
AN ACT Relating to delinquency and cancellation charges on premium finance agreements; and amending RCW 48.56.100.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. 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 delinquency charge of
one dollar to a maximum of five percent of the delinquent installment ((but
not to exceed five dollars on any installment which)) that is in
default for a period of five days or more except that if the loan is
primarily for personal, family, or household purposes the delinquency charge
shall not exceed five dollars.
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 dollars.
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