Restrictions on premium finance agreements

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  • No premium finance agreement or contract ancillary thereto shall contain any provision by which:
    • (1) In the absence of default of the insured, the premium finance company holding the agreement may, arbitrarily and without reasonable cause, accelerate the maturity of any part or all of the amount owing thereunder;

    • (2) A power of attorney is given to confer any authority to perform any act other than to request cancellation for nonpayment of premium; or

    • (3) The insured relieves the insurance agent or the premium finance company holding the agreement from liability for any legal rights or remedies which the insured may otherwise have against the agent or company.


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