Michigan SB0944 allows premium finance companies to collect fees for processing electronic payments.

Michigan SB0944 amends the insurance code to allow premium finance companies to collect fees for processing electronic payments. The bill specifies that fees must not exceed actual costs incurred by the company and cannot be charged on debit or prepaid card transactions if the insured is notified of the fee and given the option to cancel the transaction without incurring a fee. The bill also limits the delinquency charge to a maximum of 5% of the delinquent installment payment, but not exceeding $5.00.

Michigan SB0944 allows premium finance companies to collect fees for processing electronic payments.

Michigan SB0944 amends the insurance code to allow premium finance companies to collect fees for processing electronic payments. The bill specifies that fees must not exceed actual costs incurred by the company and cannot be charged on debit or prepaid card transactions if the insured is notified of the fee and given the option to cancel the transaction without incurring a fee. The bill also limits the delinquency charge to a maximum of 5% of the delinquent installment payment, but not exceeding $5.00.