31 Pa. Code § 89.51 - Promissory notes

(a) If a promissory note is to be executed by the insured in connection with the financing of the insurance premium, this fact shall be set forth in the application immediately preceding the signature of the applicant, showing the amount of the note, the true rate of interest and the amount of down payment made at the time of taking the application.

(b) If the insured is a minor and executes a promissory note in connection with his premium payment or payments, the note shall be co-signed by the parent, legal guardian or adult spouse of the insured.

(c) If a promissory note is executed in connection with the financing of less than the full first year's premium, the balance of the premium shall be paid by the applicant at the time the application is taken.

(d) A down payment shall be paid by the applicant and the payment directly or indirectly made by the agent under any circumstances shall be deemed a rebate or inducement.

Notes

31 Pa. Code § 89.51

The provisions of this § 89.51 adopted January 20, 1970.