This section outlines the requirements for a premium finance agreement, which is a contract between an insured person and a finance company to pay insurance premiums over time. The agreement must be written in at least eight-point type and include specific details: names and addresses of the parties involved, a description of the insurance policies being financed, the total premiums and fees, and a detailed breakdown of these amounts. It should also list the down payment, costs for any credit life insurance, the principal balance, finance charges, unpaid balance, and the due date for the first payment. It must specify the number, amount, and frequency of installment payments. Additionally, it should state that the insured can pay off the entire balance early and receive a refund on the finance charges, as per another specific law section.

The law states that a premium finance agreement, which helps a person pay their insurance premiums, should not have any blanks that will be filled in later, except for some specific information if the insurance policy hasn't been issued yet. If an insurance company needs to adjust the agreement for additional premiums, they must send a notice to the customer listing the new balance, how often and how much they need to pay, and tell them they have the right to cancel the new agreement within 10 days. If the customer cancels, the insurance company might cancel their coverage, starting from the day they sent the notice.

When a loan application is submitted, the company must quickly notify the insured if the application is rejected or provide a copy of the agreement indicating acceptance. If any blank space in the agreement was completed after it was signed, then a filled-in copy must be mailed or delivered to the insured. The insured has 10 days to cancel their obligation under the agreement by notifying both the producer and the company in writing. If the insured does not cancel within this period, the agreement becomes fully binding.

This law allows a premium finance agreement to include a power of attorney. This means the finance company can cancel an insurance policy if the borrower doesn't follow the agreement's terms. If the company decides to cancel, it must send a notice to the insured at least 10 days before the cancellation date.

The company’s responsibility to pay damages is limited to the remaining principal balance. However, if the company fails to send the required cancellation notice on purpose, it may be liable for more.

This law states that any rules about canceling an insurance policy, which require notifying certain parties like government agencies or anyone with a security interest, remain unaffected by other parts of this division. However, the period for sending a cancellation notice should not add up to the period required by other specific sections (18606 or 18608). If the insurance company starts the cancellation process, it must ensure the required parties are notified and correctly calculate when the cancellation takes effect, but this date can't be earlier than what the company establishes.

This law requires that when an insurance policy is canceled, the insurance company must quickly refund any leftover premiums or dividends to the company that originally financed the insurance. This refund is ultimately meant to benefit the insured person. If the financing company receives more money than it was owed, the extra must be sent back promptly to the insured, or to the insured's agent, as directed by the insured.

When a company sends a notice required by certain sections, the employee handling the mailing must fill out and sign an affidavit. This affidavit includes the employee's name and address, confirms they are over 18, notes the date and place of mailing, lists the recipient's name and address, and confirms that the envelope was sealed and had the correct postage. This affidavit acts as evidence that the notice was mailed as indicated.