415-B:8 Delinquency and Cancellation Charges. –
I. A premium finance agreement may provide for the payment by the insured of a delinquency charge on any installment which is in default for a period of 5 consecutive days or more, of $1 to a maximum of 5 percent of the delinquent installment. If the default results in the cancellation of any insurance contract listed in the agreement, the agreement may provide for the payment by the insured of a cancellation charge equal to the difference between any delinquency charge imposed with respect to the installment in default and $15.
II. A premium finance agreement may provide for payment of collection costs, attorney's fees equal to 20 percent of the outstanding indebtedness, and any other charges which arise because one party breaches the contract.
III. None of the charges referred to in this section shall be considered directly or indirectly in determining whether a violation of the usury laws has occurred under a premium finance agreement.