§ 27-29-13 - Payment of premium – Cancellation.
SECTION 27-29-13
§ 27-29-13 Payment of premium –Cancellation. – Notwithstanding the provisions of chapter 40 of this title, private passengermotor vehicle insurance policyholders on either six (6) month or twelve (12)month policies shall have the option of paying any policy premiums ininstallment payments; provided that for a twelve (12) month policy the insurermay require a payment of fifteen percent (15%) of the annual premium at time ofissuance with the balance to be paid thereafter in nine (9) subsequent andequal monthly installments thereafter for a six (6) month policy, the insurermay require a payment of thirty-five percent (35%) of the premium at time ofissuance with the balance to be paid in three (3) subsequent and equal monthlyinstallments thereafter. The insurer may levy a service charge of up to fivedollars ($5.00) per installment period against those policyholders who choosethe installment option. An insurer may levy and collect a maximum fee or chargeof ten dollars ($10.00) for any late payment of premium by a policyholder. Alate fee may not be imposed unless payment is received more than five (5)business days following the date payment is due. Policyholders shall beentitled to receive no less than thirty (30) days notice before a cancellationof an automobile insurance policy for any reason except nonpayment of premium,in which instance policyholders shall be entitled to receive no less than ten(10) days notice.