Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 2 - Division of Insurance
Chapter 23 - Producers, Managing General Agents, Surplus Lines Brokers, Reinsurance Intermediary Managers, Reinsurance Intermediary Brokers, Third Party Administrators, and Independent Adjusters
Article 2 - Premium Financing
3 AAC 23.260 - Contents of premium finance agreement; cancellation if default

(a) A licensee's premium finance agreement or agreement to extend credit must

(b) The power of attorney required in (a)(2) of this section must provide that, if a payment under the agreement is in default,

(c) If a licensee requests cancellation under (b)(2) of this section, the insurance policy must be canceled as if the notice of cancellation had been submitted by the borrower, but the return of the insurance policy is not required.

(d) If a statute, regulation, or contractual provision requires notice of cancellation to a governmental agency, mortgagee, or other third party, an insurer shall give notice on behalf of itself or the borrower no later than the fifth business day after the insurer receives the notice of cancellation from the licensee. The insurer shall determine the effective date of cancellation taking into consideration the number of days' notice required by statute, regulation, or contractual provision to complete the cancellation.

(e) The premium finance agreement or agreement to extend credit is not required to set out the items listed in (a) of this section in the order in which they are listed, but may use any logical sequence. The premium finance agreement or agreement to extend credit may include additional items to explain the computations made in determining the amount to be paid by the insured.

(f) The repayment schedule relating to personal insurance, as that term is defined in AS 21.36.310, must be arranged so that the total amount due the licensee at any time does not exceed the unearned premium on the policy being financed at that time. A deficiency balance may not be established or collected from the borrower. This section does not preclude the licensee from establishing or collecting a deficiency balance to the extent the insurer offsets unearned premiums on the policy financed by premiums earned by reason of endorsements to that same policy not paid for by the insured or financed by the licensee.

(g) The licensee shall deliver a complete copy of the premium finance agreement or agreement to extend credit to the borrower at the time the agreement is executed.