Sec. 513a2. Definitions.
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/il/chapter-215/act-5/513a2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 513a2. Definitions.
(a)"Accepted agreement" means a premium finance agreement deemed to be accepted by a premium finance company when a binder number or policy number is provided for each policy premium listed on the premium finance agreement and premium payment book or when the first premium payment notice has been sent to the named insured.
(b)"Financing insurance premiums" means to be engaged in the practice of:
(1)advancing monies directly or indirectly to an insurer pursuant to the terms of an
acquired premium finance agreement; or
(2)allowing 10% or more of a producer's or registered firm's premium accounts
receivable to be more than 90 days past due.
(c)"Premium finance agreement" means a promissory note, loan contract, or agreement by which an insured or prospective insured promises to pay to another person an amount advanced or to be advanced thereunder to an insurer in payment of premiums on an insurance contract together with a service charge and which contains an assignment of or is otherwise secured by the unearned premium payable by the insurer upon cancellation of the insurance contract; provided, however, that a premium finance agreement shall not include an installment sale contract, lease agreement, security agreement, or mortgage covering personal or real property that includes a charge for insurance or pursuant to which the vendor, lessor, lienholder, or mortgagee is authorized to pay or advance the premium for insurance with respect to that property.
(d)"Premium finance company" means any person engaged in the business of financing insurance premiums, of entering into premium finance agreements with insureds, or of acquiring premium finance agreements.