What is the maximum service fee for financing premium that an agent or agency can charge?

The maximum service fee that an agent or agency can charge for financing premium payments is set at a specific amount to regulate the costs associated with premium financing. In this case, the correct answer of $3 per payment aligns with Florida's statutory limits, ensuring that the fees remain reasonable for consumers. This regulation is designed to protect consumers from potentially exorbitant fees that could arise from financing arrangements, promoting transparency and fairness in the insurance industry.

Understanding these limits is vital for both agents and consumers. Agents must adhere to this maximum service fee when structuring financing options for clients, and consumers should be aware of their rights regarding service fees. By knowing the established cap, consumers are better equipped to make informed decisions when considering financing options related to their insurance premiums.