When, pursuant to the written or oral request of an insured or applicant for insurance, an insurance producer or agency advances all or any part of the premium for an insurance policy to the insurer in behalf of the insured or applicant for insurance, the producer or agency is entitled to recover from the insured or applicant for insurance, in addition to the amount advanced, a service charge equal to the greater of one and one-half percent or one dollar and fifty cents a month on any unpaid balance. The producer or agency has a lien equal to the amount of the unpaid balance and service charges upon any unearned premium on the policy held by the insurer and subject to refund by the insurer under the policy.
HISTORY: Former 1976 Code Section 38-43-410 [1947 (45) 322; 1952 Code Section 37-681; 1962 Code Section 37-681] recodified as Section 38-73-410 by 1987 Act No. 155, Section 1; Former 1976 Code Section 38-51-410 [1962 Code Section 37-259.10 1969 (56) 780; 1978 Act No. 496] recodified as Section 38-43-410 by 1987 Act No. 155, Section 1; 2002 Act No. 323, Section 2, eff January 31, 2003.