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  • PART III COURTS, JUDICIAL OFFICERS AND PROCEEDINGS IN CIVIL CASES
  • TITLE IV CERTAIN WRITS AND PROCEEDINGS IN SPECIAL CASES
  • CHAPTER 255C INSURANCE PREMIUM FINANCE AGENCIES
  • Section 16 Prohibited provisions in agreements

Section 16. No premium finance agreement shall contain any provision whereby

(a) in the absence of default of the insured, the premium finance agency holding the agreement may, arbitrarily and without reasonable cause, accelerate the maturity of any part or all of the amount owing thereunder;

(b) a power of attorney is given to confess judgment in this commonwealth; or

(c) the insured relieves the insurance agent or broker or the premium finance agency holding the agreement from liability for any legal rights or remedies which the insured may otherwise have against him.