By the Division of Banks

Form Of Premium Finance Agreement

According to Mass. Gen. L. ch. 255C § 13 "a premium finance agreement shall be in writing on a form approved by the commissioner and shall comply with the provisions of this chapter." The Division of Banks reviewed 209 CMR 21.00 for historical guidance regarding the form of the agreement. 209 CMR 21.01(4) provided that the insured receive an executed copy of the agreement. 209 CMR 21.01(6) states in part that until an agreement is paid in full, a sales premium finance agency must keep on file the original agreement or duplicate original. Accordingly, multiple original copies are not required under present law, nor were they under prior law. Therefore, it is possible for the agreements to be prepared using only a single original with photocopies made as necessary.