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Alaska Statutes (Last Updated: January 11, 2017) |
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Title 06. BANKS AND FINANCIAL INSTITUTIONS. |
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Chapter 06.40. PREMIUM FINANCING ACT. |
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Article 06.40.02. OPERATIONS. |
Section 06.40.130. Delinquency charge; separate financing.
Latest version.
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(a) A premium finance agreement may provide for the payment by the borrower of a delinquency charge for any payment that is in default for a period of 10 days or more. The charge may be made for each month or fraction of a month that the payment is in default. The amount of the charge may be a minimum of $1 and as a maximum shall be subject to the following limits:
(1) for delinquent payments of less than $250, five percent of the payment or $5, whichever is less; or
(2) for delinquent payments of $250 or more, two percent of the payment.
(b) A borrower has the option to separate the financing of the premiums for one insurance policy from a premium finance agreement by requesting in writing that the premium finance company provide that service and by paying a $10 separate charge.