§ 58-35-50. Form, contents and execution of insurance premium finance agreements. - North Carolina Statutes

§ 58‑35‑50.  Form,contents and execution of insurance premium finance agreements.

(a)        An insurancepremium finance agreement shall be in writing, dated, signed by the insured,and the printed portion thereof shall be in type that is legible, as determinedby rule. It shall contain the entire agreement of the parties with respect tothe insurance contract, the premiums for which are advanced or to be advancedunder it, and the following:

"INSURANCE PREMIUM FINANCE AGREEMENT NOTICE

a.         Do not sign thisagreement before you read it.

b.         You are entitled toa copy of this agreement.

c.         Under the law, youhave the right to pay off in advance the full amount due and under certainconditions to obtain a partial refund of the service charge."

(b)        An insurance premiumfinance agreement shall:

(1)        Contain thefollowing:

a.         The name and placeof business of the insurance agent or broker negotiating the related insurancecontract;

b.         The name of theinsured and the residence, the place of business, or any other mailing addressof the insured as specified by the insured;

c.         The name and placeof business of the insurance premium finance company to which installments orother payments are to be made;

d.         A brief descriptionof the insurance contract;

e.         The premiums for whichare advanced or to be advanced under the agreement; and

f.          The amount of thepremiums for such insurance contract; and

(2)        Set forth thefollowing items where applicable:

a.         The total amount ofthe premiums;

b.         The amount of thedown payment;

c.         The principalbalance, which is the difference between items a and b;

d.         The amount of theservice charge;

e.         The balance payableby the insured, meaning the sum of the amounts stated under items c. and d. ofthis subdivision.

f.          The number ofinstallments required, the amount of each installment expressed in dollars andthe due date or period thereof.

(c)        The items set forthin subsection (b) of this section need not be stated in the sequence or orderin which they appear in that subsection, and additional items may be includedto explain the computations made in determining the amount to be paid by theinsured.

(d)        No insurancepremium finance agreement shall be signed by an insured when it contains anyblank space to be filled in after it has been signed; however, if the insurancecontract, the premiums for which are advanced or to be advanced under theagreement, has not been issued at the time of its signature by the insured andit so provides, the name of the authorized insurer by whom such insurancecontract is issued and the policy number and the due date of the firstinstallment may be left blank and later inserted in the original of theagreement after it has been signed by the insured. (1963, c. 1118; 1999‑157,s. 2.)