CERTIFICATION OF ENROLLMENT

                        SENATE BILL 5078

                    Chapter 72, Laws of 1995

                        54th Legislature

                      1995 Regular Session

        Premium finance agreements‑-Delinquency charges

                    EFFECTIVE DATE:  7/23/95

Passed by the Senate March 7, 1995   YEAS 49   NAYS 0 JOEL PRITCHARD President of the Senate Passed by the House April 5, 1995   YEAS 96   NAYS 0

CERTIFICATE I, Marty Brown, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 5078 as passed by the Senate and the House of Representatives on the dates hereon set forth.

CLYDE BALLARD Speaker of the       House of Representatives

MARTY BROWN                             Secretary

Approved April 18, 1995 Place Style On Codes above, and Style Off Codes below.

FILED                      April 18, 1995 - 1:01 p.m.

MIKE LOWRY Governor of the State of Washington

Secretary of State                   State of Washington

          _______________________________________________

                         SENATE BILL 5078

          _______________________________________________

             Passed Legislature - 1995 Regular Session

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.

    Passed the Senate March 7, 1995.

    Passed the House April 5, 1995.

Approved by the Governor April 18, 1995.

    Filed in Office of Secretary of State April 18, 1995.

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