Code of Alabama - Title 27: Insurance - Chapter 40 - Insurance Premium Finance Companies

• Section 27-40-1 Definitions
  For the purposes of this chapter, the following words and phrases shall have the following meanings: (1) INSURANCE PREMIUM FINANCE COMPANY. A person engaged in...
• Section 27-40-2 Exemptions from chapter
  The provisions of this chapter shall not apply with respect to any of the following: (1) Any insurance company licensed to do business in this...
• Section 27-40-3 Licenses - Required; fees; information to be furnished commissioner
  (a) No person shall engage in the business of financing insurance premiums in this state without first having obtained a license as a premium finance...
• Section 27-40-4 Licenses - Investigation and qualifications of applicant; issuance
  (a) Upon the filing of an application and the payment of the license fee the commissioner shall make an investigation of each applicant and shall...
• Section 27-40-5 Licenses - Suspension or revocation
  (a) The commissioner may revoke or suspend the license of any premium finance company when, and if, after complaint and investigation, it appears to the...
• Section 27-40-6 Books and records
  (a) Every licensee shall maintain records of its premium finance transactions and the said records shall be open to examination and investigation by the commissioner....
• Section 27-40-7 Promulgation and enforcement of rules and regulations
  The commissioner shall have authority to make and enforce such reasonable rules and regulations as may be necessary in making effective the provisions of this...
• Section 27-40-8 Contents and style of premium finance agreement
  (a) The contents and style of the premium finance agreement shall be as follows: (1) It shall be dated, signed by the insured or an...
• Section 27-40-9 Service charges; prepayment of obligation
  (a) For the purpose of this section, "consumer insurance premium finance agreement" means an insurance premium finance agreement as defined in Section 27-40-1 wherein the...
• Section 27-40-10 Delinquency and cancellation charges
  A premium finance agreement may provide for the payment by the insured of the delinquency charge of $1.50 to a maximum of five percent of...
• Section 27-40-11 Procedure for cancellation of insurance contract upon default
  (a) When a premium finance agreement contains a power of attorney enabling the premium finance company to cancel any insurance contract or contracts listed in...
• Section 27-40-12 Return of gross unearned premiums upon cancellation of contract
  (a) Whenever a financed insurance contract is cancelled, the insurer shall return whatever gross unearned premiums are due under the insurance contract to the premium...
• Section 27-40-13 Filing of agreement
  No filing of the premium finance agreement shall be necessary to perfect the validity of such agreement as a secured transaction as against creditors, subsequent...
• Section 27-40-14 Exclusive jurisdiction of Department of Insurance
  When a premium finance company has complied with the licensing provisions of this chapter, it shall not be subject to any other licensing or regulatory...
• Section 27-40-15 Premium financed to be sent to insurance company, agent, or surplus lines broker; issuance of drafts, etc.; duties with respect to cancellation
  (a) The amount of premium financed, more specifically referred to as "the principal balance" in paragraph c. of subdivision (3) of subsection (a) of Section...
• Section 27-40-16 Payment of rebates or inducements prohibited; purchase of premium finance agreement
  No premium finance company and no employee of such a company shall pay, allow, or offer to pay or allow in any manner whatsoever to...
• Section 27-40-17 Notification of existence of premium finance agreement
  Any premium finance company which enters into a premium finance agreement under this chapter shall notify the insurer whose premiums are being financed of the...
• Section 27-40-18 Delivery of copy of premium finance agreement to insured
  Prior to the due date of the first installment payable under a premium finance agreement, the premium finance company holding the agreement shall deliver to...

Last modified: May 3, 2021