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§ 3307. Form of insurance premium finance agreement

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. Insurance

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 40 P.S. Insurance (Refs & Annos)
Chapter 13. Insurance Premium Finance Company Act
40 P.S. § 3307
§ 3307. Form of insurance premium finance agreement
Currentness
(a) Contents. An insurance premium finance agreement shall:
(1) Be dated and signed by or on behalf of the insured, and the printed portion thereof shall be in at least eight-point type.
(2) Be dated and signed by the agent or broker, if any, executing such agreement.
(3) Contain the name and principal place of business of the insurance agent negotiating the related insurance contract, the name and residence or the place of business of the insured as specified by him, the name and place of business of the insurance premium finance company to which payments are to be made, a brief description of the insurance contracts involved and the amount of the premium therefor.
(4) Comply with all applicable standards set forth in the Federal Truth in Lending Act (15 U.S.C. § 1601 et seq.).
(b) Approval of form. The form of an insurance premium finance agreement shall be one which has been submitted to the commissioner for his review and approved by him for use. The commissioner shall approve or disapprove a form within 30 days from the date of its submittal. If the commissioner should fail to act within this time period, the form, as submitted, shall be deemed approved.
(c) Agreement period. An insurance premium finance agreement shall be for a period of time no longer than the term of the policy, but in no event to exceed three years.
(d) Prohibited terms. No insurance premium finance agreement shall contain any of the following terms:
(1) A provision that, in the absence of default of the insured, the insurance 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 to confess judgment in this Commonwealth.
(3) A waiver by the insured of any right of action against the insurance premium finance company, any holder of an insurance premium finance agreement or any person acting on behalf of either, for any violation of this act or other wrongful act committed in the enforcement of the contract or agreement.
(4) A provision that the seller or holder of the contract, or any person acting on his behalf, is given authority to take a mortgage or other security against residential real estate of the buyer or any other obligee to the contract.

Credits

1984, Dec. 19, P.L. 1182, No. 224, § 7, effective in 60 days.
40 P.S. § 3307, PA ST 40 P.S. § 3307
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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