Permissible charges: Late payment; returned check; collection costs or attorney’s fees.
1. A company shall not impose or collect a fee or charge which is not authorized by this section.
2. An agreement may provide for a charge for any late payment of an installment of not less than $1 and not more than 5 percent of the installment.
3. A company may collect a fee of not more than $15 for each check returned to the company because the insured had insufficient money or credit with the drawee to pay the check or because the insured stopped payment on the check.
4. An agreement may provide for payment of collection costs or attorney’s fees, equal to 20 percent of the outstanding indebtedness if the agreement is referred for collection to a collection agency or attorney who is not an employee of the company.
Last modified: February 27, 2006