00RS HB396

HB396

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HB 396 (BR 1636) - R. Crimm

     AN ACT relating to insurance premium finance companies.
     Create a new section of Subtitle 30 of KRS Chapter 304 to prohibit a premium finance company from selling, assigning, or transferring its license; prohibit the selling, assigning, or transferring of a premium finance agreement except as provided; create a new section of Subtitle 30 of KRS Chapter 304 to provide that if an insurer receives written notice that the initial down payment has been dishonored by a financial institution within 15 days after receipt of the initial down payment, there shall be no valid contract and the policy shall be void; amend KRS 304.30-080 to require an insurance premium finance agreement to be readable and intelligible and signed by the premium finance applicant; permit a premium finance company to include in the premium finance agreement a security interest in the unearned premium due on the policy in the event of cancellation of the policy; amend KRS 304.30-090 to prohibit a premium finance company from charging interest to accrue beyond the final installment due date, except in the event of default; amend KRS 304.30-110 to make technical changes.

     Jan 19-introduced in House
     Jan 20-to Banking and Insurance (H)
     Jan 24-posted in committee
     Feb 17-reported favorably, 1st reading, to Calendar
     Feb 18-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Tuesday, February 22, 2000
     Mar 17-recommitted to Appropriations and Revenue (H)


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