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This entry was published on 2014-09-22
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SECTION 567
Form and content of premium finance agreements
Banking (BNK) CHAPTER 2, ARTICLE 12-B
§ 567. Form and content of premium finance agreements. 1. A premium
finance agreement shall be in writing and dated on the date of its
signature by the insured; the printed portion thereof shall be in at
least eight point type.

2. It shall contain the entire agreement of the parties with respect
to the insurance contract, the premiums for which are advanced or to be
advanced under it, and:

(a) At its top, the words PREMIUM FINANCE AGREEMENT in at least ten
point bold type; and

(b) A notice in at least eight point bold type, reading as follows:
NOTICE: 1. Do not sign this agreement before you read it or if it
contains any blank space. 2. You are entitled to a completely filled in
copy of this agreement. 3. Under the law, you have the right to pay off
in advance the full amount due and under certain conditions to obtain a
partial refund of the service charge.

3. A premium finance agreement shall:

(a) Contain the name and place of business of the insurance agent or
broker, if any, negotiating the related insurance contract, the name and
residence or the place of business of the insured as specified by him,
the name and place of business of the premium finance agency which is to
hold or acquire the agreement and to which instalment or other payments
are to be made, a description of the insurance contract, the premiums
for which are advanced or to be advanced under the agreement, and the
amount of the premiums for such insurance contract; and

(b) Set forth the items required to be disclosed by the act of
congress entitled "Truth in Lending Act" and the regulations thereunder,
as such act and regulations may from time to time be amended.

4. No premium finance agreement shall be signed by an insured when it
contains any blank space to be filled in after it has been signed;
however, if any insurance contract, the premiums for which are advanced
or to be advanced under the agreement, has not been issued at the time
of its signature by the insured and it so provides, the name of the
authorized insurer by whom such insurance contract is issued and the
policy number and the due date of the first instalment may be left blank
and later inserted in the original of the agreement after it has been
signed by the insured.