Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                        CHAPTER 283-S.F.No. 205 
           An act relating to insurance; modifying the allowable 
          delinquency and related charges in premium finance 
          agreements; amending Minnesota Statutes 1990, section 
          59A.10. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 59A.10, is 
amended to read: 
    59A.10 [DELINQUENCY DEFAULT CHARGES.] 
    Subdivision 1.  [DELINQUENCIES.] A premium finance 
agreement may provide for payment by the insured of a 
delinquency charge.  The delinquency charge may be $1 or not 
exceed five percent of the delinquent installment, but not more 
than $5.  The delinquency charge may be imposed upon any 
installment which is in default for a period of ten days or more.
    Subd. 2.  [CANCELLATIONS AND COLLECTIONS.] If the default 
results in the cancellation or subsequent reinstatement of any 
insurance contract listed in the agreement, the agreement may 
provide for payment by the insured of a cancellation charge 
equal to the difference between any delinquency or default 
charge imposed with respect to the installment in default and $5 
of $10.  A premium finance agreement may also provide for the 
payment of statutory attorneys fees and statutory court costs if 
the agreement is referred for collection to an attorney not a 
salaried employee of the insurance premium finance company. 
    Presented to the governor May 29, 1991 
    Signed by the governor June 1, 1991, 3:58 p.m.