§431:10C-109  Motor vehicle insurance
identification card after cancellation of policy; return to insurer, civil
sanctions.  (a)  When a motor vehicle insurance policy is canceled before
the end of the policy period, the insured shall within thirty days after being
notified of the cancellation:



(1)  Return the motor vehicle insurance identification
card to the insurer for the policy; or



(2)  If the card is lost or stolen, submit to the
insurer an affidavit signed by the insured stating that fact to the insurer.



(b)  The insurer's notice of cancellation shall
include:



(1)  The reason for the cancellation; and



(2)  A statement of actions which may be taken under
this section if the card is not returned.



(c)  If the card or affidavit is not returned
within the period specified, the insurer may:



(1)  If the premiums for the period shown on the motor
vehicle insurance identification card have been prepaid, withhold the unearned
portions of the premiums until the identification card or an affidavit signed
by the insured has been returned.  In addition, all premiums shall be
considered "earned" until the card is returned.



(2)  If
the premiums for the period shown on the identification card have not been paid
in full, bring a civil action for three times the unpaid portion of the
premiums.  Notwithstanding section 607-14, the insurer shall be awarded
reasonable attorney's fees and court costs.  If the motor vehicle insurance
identification card is returned after the civil action is filed but before the
matter is taken to trial, the insurer shall be awarded damages of not less than
$100, but not more than the amount of the unpaid premiums together with
reasonable attorney's fees and costs as provided in this section.



(d)  Notwithstanding the provisions of this
section, the imposition of criminal sanctions under section 431:10C-117 shall
not be precluded. [L 1987, c 347, pt of §2; am L 1989, c 195, §32; am L 1997, c
251, §20; am L 2005, c 22, §26]