NY Banking L § 568 (2021)
2021 New York Laws BNK - Banking Article 12-B - Insurance Premium Finance Agencies 568 - Limitation on Service and Other Charges.

§ 568.  Limitation  on service and other charges. 1. A premium finance agency shall not, except as otherwise provided  by  law,  impose,  take, receive  from,  reserve  or  charge  an insured greater charges than are permitted by this article.   2. A premium finance agency, including an insurance  agent  or  broker licensed as such, may, in a premium finance agreement, contract for, and if  so  contracted  for, the holder of the agreement may charge, receive and collect a service charge, for financing or arranging  the  financing of  premiums  under  the  agreement, computed as provided in subdivision four.   3. An insurance agent or broker not  licensed  as  a  premium  finance agency may, in a premium finance agreement which is payable to the agent or  broker  or  his  order at the office of a premium finance agency and which is endorsed or otherwise transferred or assigned to such a premium finance agency, contract for and, if  so  contracted  for,  the  premium finance  agency  holding  the  agreement may charge, receive and collect charges for financing or arranging the financing of premiums  under  the agreement, computed as provided in subdivision four.   4.  (a)  The  service  charge  provided  for  in this section shall be computed on the principal balance of the premium finance agreement  from the inception date of the insurance contract, the premiums for which are advanced  or to be advanced under the agreement, or from the due date of such premiums, disregarding any period of grace or  credit  allowed  for payment  thereof, to and including the date when the final instalment of the premium finance agreement is  payable,  at  not  exceeding  fourteen dollars  per one hundred dollars per annum, plus an additional charge of ten dollars per premium finance agreement, which additional charge  need not be refunded upon cancellation or prepayment, provided, however, that no  insurance  agent or broker or premium finance agency shall induce an insured  to  become  obligated  under  more  than  one  premium  finance agreement for the purpose of obtaining more than one additional charge.  (b)  In computing the service charge permitted by this subdivision, if the premium finance agreement is executed later than thirty  days  after the  inception  date,  there  shall  be deducted from the amount of such service charge an amount which bears the same proportion to such service charge, as (i) the number of days  from  the  thirtieth  day  after  the inception  date  until  the  day  of  execution  of  the premium finance agreement, bears to (ii) the number of days from the inception  date  to the  date  when the final instalment of the premium finance agreement is payable. No deduction shall be required under this  paragraph,  however, if  the  amount  thereof  is less than one dollar.  For purposes of this paragraph the term "inception date" shall mean the inception date of the insurance contract being financed, or the due date of the premium  being financed (disregarding any period of grace or credit allowed for payment thereof), which ever shall be earlier.  (c)  Such service charge shall be computed on the principal balance of a premium finance agreement payable in  successive  monthly  instalments substantially  equal  in  amount  for a period of one year. On a premium finance agreement providing for instalments extending for a period  less than  or  greater  than  one  year, the service charge shall be computed proportionately.  (d) When a premium finance agreement provides for unequal or irregular instalments, the service charge shall be computed at the effective  rate provided  for  in  paragraph  (a), having due regard for the schedule of instalments.  (e) The foregoing charges shall be inclusive of all  charges  incident to  the  premium  finance  agreement  and  for  the  extension of credit provided for therein.  (f) The foregoing paragraphs of this subdivision  four  apply  if  the premiums  under  only  one  insurance  contract  are  advanced  or to be advanced under a premium finance agreement; if premiums under more  than one  insurance  contract  are  advanced  or  are  to be advanced under a premium  finance  agreement,  the service charge shall be computed as if the premiums under each  insurance  contract  were  advanced  or  to  be advanced under separate premium finance agreements.