What is the maximum service charge for premium finance on an amount greater than $1,000?

In Illinois, the regulations surrounding premium finance agreements specify the limits on service charges that can be applied. For amounts exceeding $1,000, the maximum service charge established by law is $40. This regulation is designed to protect consumers from excessive costs associated with financing their insurance premiums.

It’s important to understand that the amount of $40 reflects a balance between allowing finance companies to remain in business while ensuring that policyholders aren't burdened with high fees. Thus, when considering a premium finance charge over $1,000, $40 is the legal maximum that can be charged, making this the correct response.