Insurance: other; processing fees; allow premium finance companies to collect. Amends sec. 1510 of 1956 PA 218 (MCL 500.1510).

Summary

The legislation limits the extra charge a borrower can be assessed when a premium finance payment is late, with a $5 maximum for personal, family, household policies and small nonprofit policies. It also establishes how finance companies may charge fees for electronic payments, requiring clear notice, a chance to cancel, and fee‑free alternatives like cash or check. The goal is to protect insureds from excessive fees while allowing finance companies to recover actual processing costs.

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