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Title 3 . Commerce, Community, and Economic Development
Chapter 23 . Miscellaneous
Section 250. Credit and loans considered premium financing

3 AAC 23.250. Credit and loans considered premium financing

(a) When a licensee extends credit beyond the date premiums are required to be remitted to the insurer, or loans funds to a person whose coverage has been placed through the licensee, the extension of credit or making a loan is premium financing and the terms of the financing must comply with 3 AAC 23.210 - 3 AAC 23.380.

(b) A licensee is not required to comply with 3 AAC 23.210 - 3 AAC 23.380 if the licensee

(1) does not charge the insured a service charge for the extension of credit or loan of funds to pay a premium; however, a licensee may charge the licensee's standard late fee; and

(2) notifies the insured, by a regular monthly statement or separate written notice within 30 days after extending credit, of the amount of credit or loan and for what purpose the credit or loan has been extended.

(c) A licensee who completes a transaction through an extension of credit or loan of funds in compliance with (b) of this section must

(1) take the risk of extending credit or loaning funds; and

(2) if notified by the insured that the extension of credit for the payment of premium is not desired, reverse the extension of credit from the insured's records effective to the date the credit was extended.

History: Eff. 4/22/79, Register 70; am 8/4/94, Register 131; am 3/11/98, Register 145

Authority: AS 21.06.090

AS 21.36.122

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The Alaska Administrative Code was automatically converted to HTML from a plain text format. Every effort has been made to ensure its accuracy, but neither Touch N' Go Systems nor the Law Offices of James B. Gottstein can be held responsible for any possible errors. This version of the Alaska Administrative Code is current through June, 2006.

If it is critical that the precise terms of the Alaska Administrative Code be known, it is recommended that more formal sources be consulted. Recent editions of the Alaska Administrative Journal may be obtained from the Alaska Lieutenant Governor's Office on the world wide web. If any errors are found, please e-mail Touch N' Go systems at E-mail. We hope you find this information useful. Copyright 2006. Touch N' Go Systems, Inc. All Rights Reserved.

Last modified 7/05/2006