§ 575 — Refinancing

§ 575. Refinancing. A premium finance agency may, upon agreement with\nthe insured, extend the scheduled due date or defer the scheduled\npayment of all or of any part of any instalment or instalments payable\nthereunder. The agreement for such extension or deferment must be in\nwriting and signed by the parties thereto. The premium finance agency\nmay charge and contract for the payment of an extension or deferral\ncharge by the insured and collect and receive the same, but such charge\nmay not exceed an amount equal to one per centum per month simple\ninterest on the amount of the instalment or instalments, or part\nthereof, extended or deferred for the period of extension or deferral.\nSuch period shall not exceed the period from the date when such extended\nor deferred instalment or instalments, or part thereof, would have been\npayable in the absence of such extension or deferral, to the date when\nsuch instalment or instalments, or part thereof, are made payable under\nthe agreement of extension or deferment; except that a minimum charge of\none dollar for the period of extension or deferral may be made in any\ncase where the extension or deferral charge, when computed at such rate,\namounts to less than one dollar.\n