(215 ILCS 5/513a9) (from Ch. 73, par. 1065.60a9)
Sec. 513a9.
Premium finance agreement.
(a) A premium finance
agreement must be dated and signed by or on behalf of the named
insured, and the printed
portion shall be in at least 8-point type. The following items must be set
forth on the first page of the accepted finance agreement:
(1) the total amount of the premiums;
(2) the amount of the down payment;
(3) the principal balance (the difference between |
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(4) the amount of the finance charges expressed in
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| dollars and as an annual percentage rate;
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(5) the balance payable by the insured (sum of items
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(6) the number of installments, the due dates
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| thereof, and the amount of each installment expressed in dollars; and
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(7) the policy numbers or binder numbers.
(b) The premium finance company is required to
furnish full and complete
disclosure of the terms and conditions of the premium finance
agreement including, but not limited to, the specific insurance coverages
financed to the named insured no later than the date that the first
premium payment notice is sent to the insured.
(c) As to policies written primarily for personal, family, or household
use, the premium finance company must:
(1) deliver or mail the premium check or checks in
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| the amount of the principal balance directly to the insurer or insurers unless the insurer or insurers have given written authority to the premium finance company to deliver the checks to the producer;
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(2) issue the premium check or checks payable to the
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| insurer, insurers, or, if the insurer gives written authority to the premium finance company, to the producer; and
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(3) properly identify the premium check or checks by
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| policy number or binder number when the premium is paid to the insurer or insurers.
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(d) As to all other policies the premium finance company may:
(1) deliver or mail the premium check or checks in
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| the amount of the principal balance directly to the producer; and
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(2) issue the premium check or checks payable to the
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(e) A premium finance company that pays the financed premium to the
producer pursuant to subsection (d) establishes the producer as the agent of
the premium finance company for payment of the premium and for receipt of any
return premium.
(Source: P.A. 89-265, eff. 1-1-96; 90-381, eff. 8-14-97.)
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