“Premium finance agency” means any industrial loan company incorporated under this division which, by the terms of its authority to engage in the industrial loan business, is permitted to issue or sell investment certificates subject to the limitations set forth in Section 18596 and its business is limited to that set forth in this chapter.
Insurance Premium FinancingDefinitions
Section § 18560
A "premium finance agency" is an industrial loan company allowed to issue or sell investment certificates under specific conditions outlined in Section 18596. This company's business operations are restricted to what's specified in this particular chapter.
premium finance agency industrial loan company investment certificates
Section § 18561
This section states that any terms about insurance mentioned in this chapter should be understood as they're defined in the Insurance Code and as commonly used in the insurance business.
Such terms relating to insurance as are used in this chapter shall have the meaning ascribed to them in the Insurance Code and in the practices of the insurance business.
insurance terminology Insurance Code definitions insurance business practices
Section § 18562
This section defines 'insured' as someone who buys or organizes the purchase of an insurance policy and also enters into a premium finance agreement with a financing agency.
As used in this chapter, “insured” means the person who has purchased or arranged to purchase an insurance contract and who enters into a premium finance agreement with a premium finance agency.
insured insurance contract premium finance agreement
Section § 18563
This law explains what "premium financing" means. It's when a company loans money to an insurance company or agent on behalf of a policyholder to help them pay for insurance premiums. The policyholder gives up any refunds or payments they're owed as a guarantee for the loan. This does not cover situations where premiums are part of a deal to buy other goods or services. The loan amount should reasonably match the insurance premiums needing to be paid.
As used in this chapter, “premium financing” means the activities of a company engaging in the business of advancing money directly or indirectly to an insurer or producer at the request of an insured pursuant to the terms of a premium finance agreement, wherein the insured has assigned the unearned premiums, accrued dividends or loss payments as security for such advancement in payment of premiums on insurance contracts only, and acquiring premium finance agreements, and does not include the financing of insurance contract premiums purchased in connection
with the financing of goods and services. The amount of such advancement in payment of premiums must bear a reasonable relationship to the premium or premiums being financed.
premium financing insurance premiums advance money
Section § 18564
This section defines a 'premium finance agreement' as a type of loan contract. Under this agreement, a person who has insurance (the insured) agrees to pay back a company in installments for the money it spent on their insurance premiums. The insured also gives the company additional rights as security, like unearned premiums or any future payments from insurance gains. Importantly, the loan contract won't require installments to be paid after the insurance policy period ends.
As used in this chapter, “premium finance agreement” means a loan contract, note, agreement or obligation by which an insured agrees to pay to a company in installments the principal amount advanced by the company to an insurer or producer in payment of premium on an insurance contract or contracts, plus charges, with the assignment as security therefor of the unearned premiums, accrued dividends or loss payments, the final installment due date of the agreement not to extend beyond the term of the insurance contract included in the agreement having the latest expiration date.
premium finance agreement loan contract installments
Section § 18565
In this section, the term "company" specifically refers to a premium finance agency.
As used in this chapter, “company” means a premium finance agency.
premium finance agency company definition finance terminology
Section § 18566
This law defines 'principal balance' in the context of insurance as the amount left after subtracting the down payment from the premium and fees charged by the insurer or producer.
As used in this chapter, “principal balance” means the difference between the amount of the premium and fees charged by the insurer or producer and the downpayment on the premium.
principal balance premium fees
Section § 18567
This section defines a "finance charge" in the context of insurance. It's any extra cost the insured agrees to pay beyond the standard premium and fees charged. However, it doesn't include the cost of credit life insurance or attorney fees.
As used in this chapter, “finance charge” means any amount which the insured agrees to pay the company in excess of the premium and fees charged by the insurer or producer, and exclusive of the cost of credit life insurance and attorney fees.
finance charge insurance premium extra charges
