364.120. Interest or discount, amount allowed, computation--prepayment of obligation--refund credit, calculation.

MISSOURI STATUTES AND CODES

364.120. Interest or discount, amount allowed, computation--prepayment of obligation--refund credit, calculation.

Interest or discount, amount allowed, computation--prepayment ofobligation--refund credit, calculation.

364.120. 1. A premium finance company shall not charge, contractfor, receive, or collect any interest or discount charge other than aspermitted by sections 364.100 to 364.160.

2. The interest or discount is to be computed on the balance of thepremiums due, after subtracting the down payment made by the insured inaccordance with the premium finance agreement, from the effective date ofthe insurance contract, for which the premiums are being advanced, to andincluding the date when the final installment of the premium financeagreement is payable.

3. The interest or discount shall be a maximum of fifteen dollars perone hundred dollars per year, which shall be computed as a fifteen percentadd-on interest rate, plus an additional service charge of ten dollars perpremium finance agreement which need not be refunded on cancellation orprepayment; except that, if the insurance premiums being financed are forother than personal, family or household purposes, the parties to thepremium finance agreement may agree to any rate of interest which shall bestated in the premium finance agreement. The interest or discountpermitted by this subsection anticipates timely repayment in consecutivemonthly installments equal in amount for a period of one year. Forrepayment in greater or lesser periods or in unequal, irregular, or otherthan monthly installments, the interest or discount may be computed at anequivalent effective rate having due regard for the timely payments ofinstallments.

4. Notwithstanding the provisions of any premium finance agreement,any insured may prepay the obligation in full at any time and shall receivea refund credit. The amount of the refund shall be calculated by theactuarial method of calculating refunds and no more interest shall beretained by the lender than is actually earned.