{"data":{"id":"us-mi/mich.-comp.-laws-500.1509","jurisdiction":"us-mi","citation":"Mich. Comp. Laws § 500.1509","heading":"Premium finance company; authorized charges; service charge; amending original contract where balance of premium due changed.","body":"Sec. 1509.\n\nA premium finance company shall not charge, contract for, receive, or collect any charge other than as permitted by this chapter.\n\nThe service charge shall be computed on the balance of the premiums due, after subracting 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.\n\nExcept as provided in subsection (4), the service charge shall be a maximum of $12.00 per $100.00 per year plus an additional charge of $18.00 per premium finance agreement. The $18.00 need not be refunded upon cancellation or prepayment. Notwithstanding the provisions of any premium finance agreement to the contrary, any insured may pay the agreement in full at any time before the maturity of the final installment of the balance thereof and shall receive a refund of the unearned service charge which shall represent at least as great a proportion of the service charge after first deducting therefrom an acquisition cost of not more than $18.00 as:\n\nThe sum of the monthly balances under the schedule of payments in the finance agreement beginning as of the date after the prepayment which is the next succeeding monthly anniversary date of the due date of the first installment under the agreement, or, if the prepayment is prior to the due date of the first installment under the agreement, then as of the date after the prepayment which is the next succeeding monthly anniversary date of the date of the agreement, bears to;\n\nThe sum of all the monthly balances under the schedule of installment payments in the agreement. Where the amount of refund is less than $3.00, a refund need not be made.\n\nWhen the balance of premiums due is less than $100.00 and is:\n\nTo be paid in 3 monthly installments or less, the maximum service charge shall be $15.00.\n\nTo be paid in 4 or 5 monthly installments, the maximum service charge shall be $17.00.\n\nThe service charge shall be computed at the time of making the contract of insurance.\n\nIf the balance of premium due is changed, an amendment shall be added to the original contract setting forth the items required in section 1508(1)(c).","path":["MI Code","Chapter 500","Act Act-218-of-1956"],"source_url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-1509","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:31Z","sha256":"686e59645375179927dfcc653cd3f55f8bb3584c2e60d55a7e6f5b8a4931c9a1","source_id":"us-mi","stale":false,"prev":"us-mi/mich.-comp.-laws-500.1508","next":"us-mi/mich.-comp.-laws-500.1510"},"notice":"GroundRules: Original legal text. Not legal advice."}