The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 8 V.S.A. § 7007)
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§ 7007. Limitation on interest and other charges
(a) An insurance premium finance company shall not charge, contract for, receive, or collect
an interest charge or any fee, other than as permitted by this chapter.
(b) The interest is to be computed on the balance of the premiums due (after subtracting
the down payment made by the insured in accordance with the insurance premium finance
agreement) from the effective date of the insurance contract, for which the premiums
are being advanced, to and including the date when the final installment of the insurance
premium finance agreement is payable.
(c) The interest rate shall not exceed the rates permitted by 9 V.S.A. § 41a(b)(5), or a nonrefundable charge of $15.00 per insurance premium finance agreement, whichever
is greater, except as provided in this section. If the insurance policy that is the
subject of the insurance premium finance agreement is for other than personal, family,
or household purposes, then the parties to the contract may agree upon any rate of
interest that shall be stated in the insurance premium finance agreement. The interest
permitted by this subsection anticipates timely repayment in consecutive monthly installments
equal in amount for a period of one year. For repayment in greater or lesser periods
or in unequal, irregular, or other than monthly installments, the interest may be
computed at an equivalent effective rate having due regard for the timely payments
of installments.
(d) Notwithstanding the provisions of any insurance premium finance agreement, an insured
may prepay the obligation in full at any time. In such event, the insured shall receive
a refund credit, which refund credit shall be computed according to the actuarial
method on the assumption that all payments were made as originally scheduled. Where
the amount of the refund credit is less than $1.00, no refund need be made, unless
specifically requested by the insured. (Added 1983, No. 77, § 1; amended 2021, No. 105 (Adj. Sess.), § 249, eff. July 1, 2022.)