Maximum interest permitted

(a) A premium finance company may not charge, contract for, receive, or collect a service charge other than as permitted in AS 06.40. (b) Repealed 11/14/80. (c) If the service charge is to be computed monthly, the licensee may only charge up to 1.25 percent interest on the unpaid principal balance. The unpaid principal balance must not include the unpaid interest balance or any other unpaid charges. (d) The service charge must not exceed a simple interest equivalent annual rate of 15 percent plus an additional charge of no more than $10 per premium finance agreement. (e) If an additional charge of a maximum of $10 per premium finance agreement is charged as set out in (d) of this section, the licensee shall clearly disclose the charge to the borrower in the premium finance agreement.