KRS 304.30-090: Maximum service charge.

(1) A premium finance company shall not charge, contract for, receive, or collect a

service charge other than as permitted by the subtitle.

(2) The service charge is to be computed on the balance of the premiums due (after

subtracting the down payment made by the insured in accordance with the premium

finance agreement) from the effective date of the insurance coverage, for which the

premiums are being advanced, to and including the date when the final installment

of the premium finance agreement is payable.

(3) The service charge shall be a maximum of twelve dollars ($12) per one hundred

dollars ($100) per year plus an additional charge of fifteen dollars ($15) per

premium finance contract which need not be refunded upon cancellation or

prepayment.