SECTIONS 29000-29003 - California Statutes

FINANCIAL CODE

SECTION 29000-29003

29000. As used in this division, "premium financing" means engaging
in the business of advancing money, directly or indirectly, to an
insurer or producer at the request of an insured pursuant to the
terms of a premium finance agreement, wherein the insured has
assigned the unearned premiums, accrued dividends, or loss payments
as security for such advancement in payment of premiums on insurance
contracts only, and does not include the financing of insurance
contract premiums purchased in connection with the financing of goods
and services.

29001. As used in this division, "finance charge" means any amount
which the insured agrees to pay in excess of the premium and fees
charged by the insurer or producer, and exclusive of the cost of
credit life insurance and attorney fees.

29002. As used in this division, "premium finance agreement" means
a loan contract, note, agreement, or obligation by which an insured
agrees to pay to a lender in installments the principal amount
advanced by the lender to an insurer or producer in payment of
premium on an insurance contract or contracts, plus charges, with the
assignment, as security therefor, of the unearned premiums, accrued
dividends, or loss payments.

29003. Any person engaged in premium financing may pay compensation
to a licensed insurance agent or broker for arranging, directing or
performing services in connection with a premium financing agreement;
provided, that the premium financer shall maintain for inspection by
the appropriate regulatory authority for a period of three years a
statement, in a manner and form approved by the regulatory authority,
setting forth the fees paid to individual insurance agents and
brokers who are paid for services in connection with premium
financing.