North Dakota § 26.1-20.1-07 Maximum finance charge

North Dakota Statutes

§ 26.1-20.1-07 — Maximum finance charge

North Dakota § 26.1-20.1-07

Title 26.1Insurance

Ch. 26.1-20.1Insurance Premium Finance Companies

This text of North Dakota § 26.1-20.1-07 (Maximum finance charge) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 26.1-20.1-07 (2026).

Text

1.No insurance premium finance company may charge, contract for, receive, or collect a finance charge plus a flat service fee with respect to a premium finance agreement other than as permitted by this section.

2.The finance charge must be computed on the premiums due after subtracting the downpayment made by the insured in accordance with the premium finance agreement, from the effective date of the insurance coverage for which the premiums are being advanced, to and including the date when the final installment under the premium finance agreement is payable.

3.The annual percentage rate charged under a premium finance agreement made to finance an insurance policy for agricultural, personal, family, or household use may not exceed the annual percentage rate permitted under section 47-1

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1. No insurance premium finance company may charge, contract for, receive, or collect a
finance charge plus a flat service fee with respect to a premium finance agreement
other than as permitted by this section.
2. The finance charge must be computed on the premiums due after subtracting the
downpayment made by the insured in accordance with the premium finance
agreement, from the effective date of the insurance coverage for which the premiums
are being advanced, to and including the date when the final installment under the
premium finance agreement is payable.
3. The annual percentage rate charged under a premium finance agreement made to
finance an insurance policy for agricultural, personal, family, or household use may not
exceed the annual percentage rate permitted under section 47-14-09. In addition, an
insurance premium finance company may contract for a flat rate service or application
fee not exceeding the greater of one percent of the amount financed or twenty dollars
per premium finance agreement for expenses incurred in servicing the loan. The
finance rate and flat rate service or application fee charged under a premium finance
agreement made to finance an insurance policy for business, corporate, or other
purposes may be agreed to by the parties to the agreement.

4. The finance charge must be computed in advance on the principal balance of a
premium finance agreement according to the actuarial method on terms payable in
substantially equal successive monthly installments.
5. Notwithstanding the provisions of any premium finance agreement, any insured may
prepay the obligation in full at any time. If the insured prepays the obligation, the
insured must receive a refund credit if the amount of the refund is one dollar or more.
The amount of the refund credit must represent at least as great a proportion of the
finance charge as the sum of the periodic balances after the month in which
prepayment is made bears to the sum of all periodic balances under the schedule of
installments in the agreement. If, in addition to the finance charge, an additional flat
service fee was imposed, the flat service fee need not be refunded nor taken into
consideration in computing the refund credit.