(1) Discounts based on the time or date of premium payment shall be permitted. Cash discounts based on full payment of premium will be permitted, with a maximum discount not to exceed 6% of the premium. The premium payment must be paid in full by the insured and accompany the application. The discount percentage amount must be shown on the declarations page of the policy. Insurers must include supporting data with filings that justify the discount.
(2) If full premium is not paid to the insurer at the time of policy inception, and if any interest charges to the insured are associated with the deferral of premium payment, a written premium finance agreement must be incorporated into the policy by explicit reference on the policy declarations page.
(3) Any plan an insurer intends to offer for the deferral of premiums or cash discounts must be included in the insurer's filing.