Alabama § 27-40-10 - Delinquency and Cancellation Charges.
Full text of Alabama Code of Alabama § 27-40-10 — Delinquency and Cancellation Charges., with citation guidance and answers to common questions.
§ 27-40-10. Delinquency and Cancellation Charges.
A premium finance agreement may provide for the payment by the insured of the delinquency charge of $1.50 to a maximum of five percent of the delinquent installment which is in default for a period of five days or more. If the default results in the cancellation of any insurance contract listed in the agreement, the agreement may provide for the payment by the insured of a cancellation charge of $5.00 in the case of a consumer insurance premium finance agreement and $15.00 in the case of a commercial insurance premium finance agreement.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 27-40-10
What does Code of Alabama § 27-40-10 cover?
Section 27-40-10 ("Delinquency and Cancellation Charges.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 27-40-10?
A common citation format is "Code of Alabama § 27-40-10" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 27-40-10 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.