S-0322.1  _______________________________________________

 

                         SENATE BILL 5078

          _______________________________________________

 

State of Washington      54th Legislature     1995 Regular Session

 

By Senators Fraser, Prentice, Newhouse and Sellar

 

Read first time 01/10/95.  Referred to Committee on Financial Institutions & Housing.

 

Concerning premium finance agreements.



    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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