364.125. Other charges allowed. - Missouri Statutes

Other charges allowed.

364.125. 1. A premium finance agreement may provide forthe payment by the insured of a delinquency charge of up to fivepercent of any installment which is in default for a period offive days or more. If the premium finance agreement is forpersonal, family or household purposes, then the maximumdelinquency charge shall be fifteen dollars. If the defaultresults in the cancellation of any insurance contract listed inthe agreement, the agreement may provide for the payment by theinsured of a cancellation charge of fifteen dollars.

2. A premium finance agreement may provide for payment ofcollection costs and attorney's fees equal to twenty percent ofthe outstanding indebtedness if the premium finance agreement isreferred for collection to a collection agency or attorney whoare not salaried employees of the premium finance company.

3. None of the charges referred to in this section shall beconsidered, directly or indirectly, in determining whether aviolation of the usury laws has occurred under a premium financeagreement.

(L. 1984 S.B. 686 § 6)