Sec. 513a10. Maximum service charge.
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/il/chapter-215/act-5/513a10A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 513a10. Maximum service charge.
(a)No service charge shall be made for financing premiums other than as permitted by this Article.
(b)The service charge is to be computed on the principal balance 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 allowable charge as follows:
Allowable Charge Amount of Principal
Per Finance Agreement Balance
$20 $0 to $499
$30 $500 to $999
$40 $1000 or more
(d)The service charge or any other charge made by the licensee does not have to be refunded upon cancellation or prepayment. The allowable charge is considered to be part of the service charge.
(e)A premium finance agreement may provide for a delinquency charge of not less than $1 nor more than 5% of any installment in default for more than 5 days.
(f)Any other charges shall be disclosed in the premium finance agreement.