Bill > SB0944

This bill amends the Insurance Code of 1956 to allow insurance premium finance companies to collect certain processing fees from insureds who make payments using electronic methods like credit cards, debit cards, or electronic funds transfers. These fees are intended to offset the actual costs incurred by the finance company for processing these electronic payments, but they cannot exceed those actual costs, though a company can charge an average fee for various electronic payment types. Before charging a fee, the finance company must notify the insured of the amount, allow them to cancel the transaction without a fee, and always provide an option to pay by check, cash, or money order without a fee. While these fees can be charged in addition to other allowed interest and fees, they are not refundable if paid by the insured, and companies cannot charge fees on debit or prepaid card transactions if the payment card network prohibits it. The bill also clarifies that "actual costs" refers to third-party costs for processing electronic payments, even if the processing is done by an affiliated company.