State Codes and Statutes

Statutes > New-jersey > Title-17 > Section-17-16d > 17-16d-9

17:16D-9.  Form of premium finance agreement    A premium finance agreement shall--

    (a) Be dated, signed by or on behalf of the insured, and the printed portion  thereof shall be in at least 8-point type,

    (b) Contain the name and place of business of the insurance agent or insurance broker negotiating the related insurance contract, the name and residence or place of business of the insured as specified by him, the name and  place of business of the premium finance company to which payments are to be  made, a description of the insurance contracts involved and the amount of the  premium therefor;  and

    (c) Set forth the following items where applicable:

     (1) the total amount of the premiums,

      (2) the amount of the down payment,

      (3) the principal balance (the difference between items (1) and (2)),

      (4) the amount of the finance charge, including the additional charge of $10.00,

      (5) the balance payable by the insured (sum of items (3) and (4)), and

      (6) the number of installments required, the amount of each installment expressed in dollars, and the due date or period thereof.

    (d) Contain a notice reading as follows:  Notice to Insured:  (1) Read this  agreement before you sign, (2) Do not sign this agreement if it contains blank  spaces, (3) You are entitled to a copy of this agreement at the time you sign,  (4) Keep your copy of this agreement to protect your legal rights.

    The items set out in subsection (c) of this section need not be stated in the sequence or order in which they appear in such clause, and additional items  may be included to explain the computations made in determining the amount to  be paid by the insured.

    The licensee or the insurance agent or insurance broker shall deliver to the  insured, or mail to him at his address shown in the agreement, a complete copy  of the agreement.

    No premium finance agreement shall be signed by an insured when it contains  any blank spaces to be filled in after it has been signed except that if the  insurance contract involved has not yet been issued, the name of the insurer  and the policy number may be left blank and later inserted in the original  agreement.

    No premium finance agreement shall contain a power of attorney to confess judgment in this State.

     L.1968, c. 221, s. 9.