If a premium finance agency wants to do more than just finance insurance premiums, it must change its foundational legal documents and comply with the same rules and requirements as if it's applying for the first time under this division.

If a corporation is set up as a premium finance agency, its articles of incorporation must specifically state that fact.

This law states that any premium finance agency must have at least $75,000 in capital stock. Even if the agency opens multiple branch offices or business locations, it doesn't need more than this amount.

Before starting or expanding with a new branch, a premium finance agency must fully pay the entire minimum capital stock amount in cash.

This section of the law clarifies that the office of an insurance producer can prepare an insurance premium finance agreement and send it to a premium finance agency for approval. This action does not make the producer's office a business location of the finance company. Also, when producers prepare such agreements in their office, they are not considered brokers for the finance company.

If there's a disagreement between this chapter and another chapter about how premium finance agencies or insurance premium financing should operate, this chapter takes priority.

This law states that certain financial regulations listed in other sections do not apply to premium finance agencies, which are businesses that help people pay insurance premiums over time.

This law says that certain rules do not apply to genuine loans of $2,500 or more. This also includes premium finance agencies dealing with these loans, as long as these provisions aren't used to sidestep other regulations.

If you've received notice about a premium finance agreement being reassigned and you make a payment to the last known assignee, your payment counts and covers any future assignees. Even if the agreement is reassigned, you can still bring up any issues you had with the initial agreement against the company or any later assignees. Also, any rules and rights a premium finance agency has apply to whoever the agreement is reassigned to.

If you have a premium finance agreement, you can request a written statement from the company about your payments any time during the agreement or up to a year after your last payment. This statement will show the dates and amounts of payments and any remaining unpaid balance. You can get one free statement each year, and if you want more, the company can charge up to $1 for each extra statement.

If you've paid off your loan completely, you can ask the company to give you back the premium finance agreement. They'll mark it as "Paid" and return it to you.

You don't need to file a premium finance agreement to make it valid and protected against claims or disputes from creditors or others who might later buy or claim rights to the insured’s assets.

This law states that any downpayment made by the insured, or by an insurance producer for the insured, must be held by the company in trust and then transferred to the insurer. The full amount of the premium, as specified in the premium finance agreement, should be paid to the insurer within 30 days from the policy's start date, 30 days after the company receives the premium finance agreement, or 15 days after notifying the insured of a revised finance agreement, depending on which is later. If the premium is paid to the insurance agent or broker, they are not considered the company's agent because of this payment. The company must also allow the commissioner access to financial records of these trust accounts if requested.

Companies receiving downpayments under Section 18592 must manage these funds responsibly. They can either keep the money in a separate trust account or use financial instruments like time deposits or certificates of deposit, ensuring that there's always enough to cover these downpayments. If a company goes bankrupt, these funds must first go back to the insured individuals for any agreements with incomplete payments. If the funds aren't enough, they will be divided fairly among the insureds. Essentially, this law aims to protect the interests of insured individuals by ensuring their downpayment funds are secured regardless of the company's financial stability.

In California, if a company is set up as an industrial loan company and wants to engage in the business of financing insurance premiums, it must operate under the rules that apply to premium finance agencies. This means they need to follow all the same regulations as those companies specifically set up to finance insurance premiums.

This law says that a premium finance agency is not allowed to use the words “industrial loan company” in its company name, on any of its loan documents, or in its advertisements.

A premium finance company can issue or sell investment certificates in two ways. First, they can sell them directly to customers when financing their insurance premiums, but the total finance charges, including interest, can’t exceed what’s allowed by another law (Section 18626). Second, they can sell to certain institutional investors or government agencies, as specified by the Financial Protection Commissioner.