N.Y. BNK Law § 568 — New York Code / Act BNK / Article 12-B / Section 568
Limitation on service and other charges
Status: in_force

§ 568. Limitation on service and other charges. 1. A premium finance\nagency shall not, except as otherwise provided by law, impose, take,\nreceive from, reserve or charge an insured greater charges than are\npermitted by this article.\n  2. A premium finance agency, including an insurance agent or broker\nlicensed as such, may, in a premium finance agreement, contract for, and\nif so contracted for, the holder of the agreement may charge, receive\nand collect a service charge, for financing or arranging the financing\nof premiums under the agreement, computed as provided in subdivision\nfour.\n  3. An insurance agent or broker not licensed as a premium finance\nagency may, in a premium finance agreement which is payable to the agent\nor broker or his order at the office of a premium finance agency and\nwhich is endorsed or otherwise transferred or assigned to such a premium\nfinance agency, contract for and, if so contracted for, the premium\nfinance agency holding the agreement may charge, receive and collect\ncharges for financing or arranging the financing of premiums under the\nagreement, computed as provided in subdivision four.\n  4. (a) The service charge provided for in this section shall be\ncomputed on the principal balance of the premium finance agreement from\nthe inception date of the insurance contract, the premiums for which are\nadvanced or to be advanced under the agreement, or from the due date of\nsuch premiums, disregarding any period of grace or credit allowed for\npayment thereof, to and including the date when the final instalment of\nthe premium finance agreement is payable, at not exceeding fourteen\ndollars per one hundred dollars per annum, plus an additional charge of\nten dollars per premium finance agreement, which additional charge need\nnot be refunded upon cancellation or prepayment, provided, however, that\nno insurance agent or broker or premium finance agency shall induce an\ninsured to become obligated under more than one premium finance\nagreement for the purpose of obtaining more than one additional charge.\n  (b) In computing the service charge permitted by this subdivision, if\nthe premium finance agreement is executed later than thirty days after\nthe inception date, there shall be deducted from the amount of such\nservice charge an amount which bears the same proportion to such service\ncharge, as (i) the number of days from the thirtieth day after the\ninception date until the day of execution of the premium finance\nagreement, bears to (ii) the number of days from the inception date to\nthe date when the final instalment of the premium finance agreement is\npayable. No deduction shall be required under this paragraph, however,\nif the amount thereof is less than one dollar.  For purposes of this\nparagraph the term "inception date" shall mean the inception date of the\ninsurance contract being financed, or the due date of the premium being\nfinanced (disregarding any period of grace or credit allowed for payment\nthereof), which ever shall be earlier.\n  (c) Such service charge shall be computed on the principal balance of\na premium finance agreement payable in successive monthly instalments\nsubstantially equal in amount for a period of one year. On a premium\nfinance agreement providing for instalments extending for a period less\nthan or greater than one year, the service charge shall be computed\nproportionately.\n  (d) When a premium finance agreement provides for unequal or irregular\ninstalments, the service charge shall be computed at the effective rate\nprovided for in paragraph (a), having due regard for the schedule of\ninstalments.\n  (e) The foregoing charges shall be inclusive of all charges incident\nto the premium finance agreement and for the extension of credit\nprovided for therein.\n  (f) The foregoing paragraphs of this subdivision four apply if the\npremiums under only one insurance contract are advanced or to be\nadvanced under a premium finance agreement; if premiums under more than\none insurance contract are advanced or are to be advanced under a\npremium finance agreement, the service charge shall be computed as if\nthe premiums under each insurance contract were advanced or to be\nadvanced under separate premium finance agreements.\n