N.Y. BNK Law § 569

§ 569. Delinquency, collection and cancellation charges; attorney's\nfees. 1. A premium finance agreement may provide for the payment by the\ninsured of a delinquency and collection charge on each instalment in\ndefault for a period of not less than five days in an amount of one\ndollar to a maximum not in excess of five per centum of such instalment,\nprovided however, that when any personal, household or domestic\ninsurance contract are listed in the agreement the charge shall not\nexceed five dollars and, provided that only one such delinquency and\ncollection charge may be collected on any such instalment regardless of\nthe period during which it remains in default and, if the default\nresults in the cancellation of any personal, household or domestic\ninsurance contract listed in the agreement, the agreement may provide\nfor the payment by the insured of a cancellation charge equal to the\ndifference between any delinquency and collection charge imposed in\nrespect to the instalment in default and five dollars.\n 2. A premium finance agreement may also provide for the payment of\nattorney's fees not exceeding twenty per centum of the amount due and\npayable under the agreement if it is referred for collection to an\nattorney not a salaried employee of the premium finance agency holding\nthe agreement.\n 3. Notwithstanding the provisions of this section, a premium finance\nagency shall not take or receive from or charge an insured any\ncancellation charge or attorney's fees unless, within ten days after\ndefault in the payment of any instalment of a premium finance agreement,\nthe agency has mailed a notice of the default to the insured at his\naddress as shown on the agreement and to any insurance agent or broker\nnamed therein at his place of business as shown therein.\n