Ohio Code § 1321.79
Ohio Code § 1321.79. Reproduced from the official Ohio Revised Code, with a citation summary, verification link, and related provisions.
§ 1321.79.
(A) A premium finance company shall not charge, contract for, receive, or collect a finance
charge other than as permitted by sections 1321.71 to 1321.83 of the Revised Code . (B) The finance charge shall be computed on the balance of the premium 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 premium is being
advanced, to and including the date when the final installment of the premium finance
agreement is payable, without regard to any requirement for installment payments. (C) The finance charge shall be computed at a maximum rate of twelve dollars per one
hundred dollars per year, plus an acquisition charge of twenty dollars per premium
finance agreement which need not be refunded upon cancellation or prepayment. However, if the insurance policies described in the premium finance agreement are
primarily for other than personal, family, or household purposes, the licensee may
contract for and receive any finance charge agreed to in writing by the licensee and
the insured. (D)(1) Notwithstanding any provision in a premium finance agreement to the contrary, any
insured may prepay his obligation under a premium finance agreement in full at any
time before the final payment is due. In such event any unearned finance charge shall be refunded by the insurance premium
finance company. The amount of any refund shall be calculated in accordance with the rule commonly
known as the “rule of 78” or any other method more beneficial to the insured. A refund calculated in accordance with the “rule of 78” shall represent at least
as great a proportion of the finance charge, if any, as the sum of the periodic balances
at the nearest installment due date to the date on which prepayment is made bears
to the sum of all periodic balances under the original schedule of payments in the
agreement. If the amount of any refund computed under division (D)(1) of this section is less
than three dollars, no refund need be made. (2) With respect to any premium finance agreement that is cancelled, the unearned finance
charge shall be refunded in the same manner as set forth in division (D)(1) of this
section. If the balance due on such an agreement is not paid in full, the licensee may earn
interest at the rate stated in the agreement until paid in full.
Source: official Ohio text · Last verified 2026-08-27
At a glance
- Citation: Ohio Revised Code § 1321.79
- Jurisdiction: Ohio
- Code: Ohio Revised Code
- Text: transcribed from the official source (verify below)
Verify the text
Statute text is transcribed from the official Ohio Revised Code. Confirm it against the primary source before relying on it:
Not legal advice. Verify against the official source and consult a licensed Ohio attorney.
Common questions
What is the source of Ohio Revised Code § 1321.79?
The text above is transcribed from the Ohio Revised Code, the codified statutes of Ohio. The official publisher link appears under "Verify the text" on this page.
What subject does Ohio Revised Code § 1321.79 address?
It addresses the rule set out in the section text. Read the section together with the surrounding provisions listed under "Nearby provisions" for the full picture.
Is Ohio Revised Code § 1321.79 still in force?
Statutes are amended, repealed, and renumbered every session. Confirm the current version at the official Ohio source before relying on this text.
Can this page be used as legal advice?
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