20-267. Motor vehicle liability policies; monthly basis; fee
A. An insurer writing or an insurance producer soliciting applications for motor vehicle liability policies shall make available a monthly premium payment plan on policies that insure six or fewer motor vehicles.
B. At the inception of a monthly premium payment plan, an insurer may not require an insured to pay more than an amount equal to one and one-half times the monthly premium in addition to the first month's premium. Premiums for each month of coverage collected thereafter under a monthly premium payment plan may be due and payable not more than thirty days before the month of coverage related to that premium. An insurer may cancel or fail to renew a policy for nonpayment of premium, except that a cancellation or nonrenewal is not effective until the requirements of section 20-1632.01 are met.
C. An insurer or insurance producer may charge a fee pursuant to section 20-465 that is reasonably related to the administrative expenses of the monthly premium payment plan.
D. An insurer or insurance producer may use a premium finance company to meet the requirements of this section. In financing the monthly premium payment plan, at the inception of a premium finance agreement, a premium finance company may not require an insured to pay more than an amount equal to one and one-half times the monthly premium and the first month's premium. Payments collected thereafter under the premium finance agreement may be due and payable not more than every thirty days until the premium finance agreement is satisfied. A premium finance company may cancel a premium finance agreement for nonpayment pursuant to section 6-1415.
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