Title 33, Chapter 22, Section 9
(a) As used in this Code section, the term:
(1) "Commercial insurance premium finance agreement" means any
insurance premium finance agreement other than a consumer premium
(2) "Consumer insurance premium finance agreement" means an insurance premium finance agreement, as defined in Code Section 33-22-2, wherein the insurance contracts which are the subject of the premium finance agreement are for personal, family, or household purposes or where the premiums for those agreements are $3,000.00 or less.
(b) A premium finance company shall not charge, contract for,
receive, or collect a service charge other than as permitted by this
(c) The service charge shall 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 payment of the
premium finance agreement is payable.
(d) The service charge per consumer insurance premium finance
agreement shall be a maximum of $12.00 per $100.00 per annum plus an
additional charge which shall not exceed $20.00 per premium finance
agreement, which additional charge need not be refunded upon
prepayment. Any insured may prepay his premium finance agreement in
full at any time before the due date of the final payment and in
such event the unearned service charge shall be refunded in
accordance with the Rule of 78 and shall represent at least as great
a proportion of the service charge, if any, as the sum of the
periodic balances after the month in which prepayment is made bears
to the sum of all periodic balances under the schedule of payments
in the agreement.
(e) The service charge for a commercial insurance premium finance
agreement shall be properly agreed upon by the parties to the
contract. The claim or defense of usury by such insureds who enter
into such a commercial insurance premium finance agreement or their
successors or anyone in their behalf shall not be valid if such
agreement is a valid contract in all other respects.