Section 569. Delinquency, collection and cancellation charges; attorney's fees

1. A premium finance agreement may provide for the payment by the  insured of a delinquency and collection charge  on  each  instalment  in
  default  for  a  period  of  not less than five days in an amount of one
  dollar to a maximum not in excess of five per centum of such instalment,
  provided  however,  that  when  any  personal,  household  or   domestic
  insurance  contract  are  listed  in  the agreement the charge shall not
  exceed five dollars and, provided that only  one  such  delinquency  and
  collection  charge may be collected on any such instalment regardless of
  the period during which it  remains  in  default  and,  if  the  default
  results  in  the  cancellation  of  any  personal, household or domestic
  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  and  collection  charge  imposed  in
  respect to the instalment in default and five dollars.
    2.  A  premium  finance  agreement may also provide for the payment of
  attorney's fees not exceeding twenty per centum of the  amount  due  and
  payable  under  the  agreement  if  it  is referred for collection to an
  attorney not a salaried employee of the premium finance  agency  holding
  the agreement.
    3.  Notwithstanding  the provisions of this section, a premium finance
  agency shall  not  take  or  receive  from  or  charge  an  insured  any
  cancellation  charge  or  attorney's  fees unless, within ten days after
  default in the payment of any instalment of a premium finance agreement,
  the agency has mailed a notice of the default  to  the  insured  at  his
  address  as  shown on the agreement and to any insurance agent or broker
  named therein at his place of business as shown therein.