(a) A premium finance company shall not charge, contract for, receive, or collect a service charge other than as permitted by this chapter.
(b) The service charge is to be computed on the balance of the premiums due (after subtracting the downpayment 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 installment of the premium finance agreement is payable.
(c) The service charge shall be a maximum of $10 per $100 per year plus an additional charge of $20 per premium finance contract which need not be refunded upon cancellation or prepayment.
CREDIT(S)
(Oct. 9, 1940, ch. 792, ch. III, § 59; Apr. 18, 1966, 80 Stat. 126, Pub. L. 89-403, § 1; Nov. 15, 1983, D.C. Law 5-40, § 2(a), 30 DCR 4994.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 35-1559.
1973 Ed., § 35-1369.
Legislative History of Laws
Law 5-40, the “Fire and Casualty Act Amendment Act of 1983,” was introduced in Council and assigned Bill No. 5-111, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on July 5, 1983, and September 6, 1983, respectively. Signed by the Mayor on September 22, 1983, it was assigned Act No. 5-65 and transmitted to both Houses of Congress for its review.