Vermont § 7007 - Limitation on interest and other charges

§ 7007. Limitation on interest and other charges

• (a) An insurance premium finance company shall not charge, contract for, receive, or collect
  an interest charge or any fee, other than as permitted by this chapter. (b) The interest is to be computed on the balance of the premiums due (after subtracting
  the down payment made by the insured in accordance with the insurance premium finance
  agreement) from the effective date of the insurance contract, for which the premiums
  are being advanced, to and including the date when the final installment of the insurance
  premium finance agreement is payable. (c) The interest rate shall not exceed the rates permitted by 9 V.S.A. § 41a(b)(5), or a nonrefundable charge of $15.00 per insurance premium finance agreement, whichever
  is greater, except as provided in this section. If the insurance policy that is the
  subject of the insurance premium finance agreement is for other than personal, family,
  or household purposes, then the parties to the contract may agree upon any rate of
  interest that shall be stated in the insurance premium finance agreement. The interest
  permitted by this subsection anticipates timely repayment in consecutive monthly installments
  equal in amount for a period of one year. For repayment in greater or lesser periods
  or in unequal, irregular, or other than monthly installments, the interest may be
  computed at an equivalent effective rate having due regard for the timely payments
  of installments. (d) Notwithstanding the provisions of any insurance premium finance agreement, an insured
  may prepay the obligation in full at any time. In such event, the insured shall receive
  a refund credit, which refund credit shall be computed according to the actuarial
  method on the assumption that all payments were made as originally scheduled. Where
  the amount of the refund credit is less than $1.00, no refund need be made, unless
  specifically requested by the insured. (Added 1983, No. 77, § 1; amended 2021, No. 105 (Adj. Sess.), § 249, eff. July 1, 2022.)