40-2612.Cancellation of insurance contracts, when; notice; dutyof insurer; refund.(a) When a premium finance agreement contains a power of attorneyenabling the premium finance company to cancel any insurance contract orcontracts listed in the agreement, the insurance contract or contractsshall not be canceled by the premium finance company unless suchcancellation is effectuated in accordance with this section.
(b) In the event the insured fails to make the payments at the timeand in the amount provided in the premium finance agreement, the premiumfinance company shall mail to the insured a written notice of the intentof the premium finance company to cancel the insurance contract becauseof the default in payments by the insured unless the default in paymentsis cured within a time certain stated in the notice, which timeshall not be less than 10 days. A copy of suchnotice shall also be sent to the insurance agent or insurance broker indicatedon the premium finance agreements.
(c) After expiration of such 10 day period, the premiumfinance company may thereafter request in the name of the insured,cancellation of such insurance contract or contracts by mailing to theinsurer a notice of cancellation, and the insurance contract shall becanceled as if such notice of cancellation had been submitted by theinsured, but without requiring the return of the insurancecontract or contracts. The premium finance company shall also mail anotice of cancellation to the insured at the insured's last knownaddress and to the insurance agent or insurance broker indicated on the premiumfinance agreement.
(d) All statutory, regulatory, and contractual restrictionsproviding that the insurance contract may not be canceled unless noticeis given to a governmental agency, mortgagee, or other third party shallapply where cancellation is effected under the provisions of thissection. The insurer shall give the prescribed notice in behalf ofitself or the insured to any governmental agency, mortgagee, or otherthird party on or before the second business day after the day itreceives the notice of cancellation from the premium finance company andshall determine the effective date of cancellation taking intoconsideration the number of days notice required to complete thecancellation.
(e) Whenever a financed insurance contract is canceled, the insurershall, within 20 days of the effective date of cancellation, returnwhatever gross unearned premiums are due under theinsurance contract to the premium finance company, either directly orvia the agent or agency writing the insurance, where an assignment ofsuch funds is included in the premium finance agreement for the accountof the insured or insureds.
(f) In the event that the crediting of return premiums to theaccount of the insured results in a surplus over the amount due from theinsured, the premium finance company shall refund such excess to theinsured via the insured's insurance agent or agency, but no such refund shallbe required if it amounts to less than $1.
History: L. 1968, ch. 287, § 12;L. 1991, ch. 136, § 5; July 1.
40-2612.Cancellation of insurance contracts, when; notice; dutyof insurer; refund.(a) When a premium finance agreement contains a power of attorneyenabling the premium finance company to cancel any insurance contract orcontracts listed in the agreement, the insurance contract or contractsshall not be canceled by the premium finance company unless suchcancellation is effectuated in accordance with this section.
(b) In the event the insured fails to make the payments at the timeand in the amount provided in the premium finance agreement, the premiumfinance company shall mail to the insured a written notice of the intentof the premium finance company to cancel the insurance contract becauseof the default in payments by the insured unless the default in paymentsis cured within a time certain stated in the notice, which timeshall not be less than 10 days. A copy of suchnotice shall also be sent to the insurance agent or insurance broker indicatedon the premium finance agreements.
(c) After expiration of such 10 day period, the premiumfinance company may thereafter request in the name of the insured,cancellation of such insurance contract or contracts by mailing to theinsurer a notice of cancellation, and the insurance contract shall becanceled as if such notice of cancellation had been submitted by theinsured, but without requiring the return of the insurancecontract or contracts. The premium finance company shall also mail anotice of cancellation to the insured at the insured's last knownaddress and to the insurance agent or insurance broker indicated on the premiumfinance agreement.
(d) All statutory, regulatory, and contractual restrictionsproviding that the insurance contract may not be canceled unless noticeis given to a governmental agency, mortgagee, or other third party shallapply where cancellation is effected under the provisions of thissection. The insurer shall give the prescribed notice in behalf ofitself or the insured to any governmental agency, mortgagee, or otherthird party on or before the second business day after the day itreceives the notice of cancellation from the premium finance company andshall determine the effective date of cancellation taking intoconsideration the number of days notice required to complete thecancellation.
(e) Whenever a financed insurance contract is canceled, the insurershall, within 20 days of the effective date of cancellation, returnwhatever gross unearned premiums are due under theinsurance contract to the premium finance company, either directly orvia the agent or agency writing the insurance, where an assignment ofsuch funds is included in the premium finance agreement for the accountof the insured or insureds.
(f) In the event that the crediting of return premiums to theaccount of the insured results in a surplus over the amount due from theinsured, the premium finance company shall refund such excess to theinsured via the insured's insurance agent or agency, but no such refund shallbe required if it amounts to less than $1.
History: L. 1968, ch. 287, § 12;L. 1991, ch. 136, § 5; July 1.
40-2612.Cancellation of insurance contracts, when; notice; dutyof insurer; refund.(a) When a premium finance agreement contains a power of attorneyenabling the premium finance company to cancel any insurance contract orcontracts listed in the agreement, the insurance contract or contractsshall not be canceled by the premium finance company unless suchcancellation is effectuated in accordance with this section.
(b) In the event the insured fails to make the payments at the timeand in the amount provided in the premium finance agreement, the premiumfinance company shall mail to the insured a written notice of the intentof the premium finance company to cancel the insurance contract becauseof the default in payments by the insured unless the default in paymentsis cured within a time certain stated in the notice, which timeshall not be less than 10 days. A copy of suchnotice shall also be sent to the insurance agent or insurance broker indicatedon the premium finance agreements.
(c) After expiration of such 10 day period, the premiumfinance company may thereafter request in the name of the insured,cancellation of such insurance contract or contracts by mailing to theinsurer a notice of cancellation, and the insurance contract shall becanceled as if such notice of cancellation had been submitted by theinsured, but without requiring the return of the insurancecontract or contracts. The premium finance company shall also mail anotice of cancellation to the insured at the insured's last knownaddress and to the insurance agent or insurance broker indicated on the premiumfinance agreement.
(d) All statutory, regulatory, and contractual restrictionsproviding that the insurance contract may not be canceled unless noticeis given to a governmental agency, mortgagee, or other third party shallapply where cancellation is effected under the provisions of thissection. The insurer shall give the prescribed notice in behalf ofitself or the insured to any governmental agency, mortgagee, or otherthird party on or before the second business day after the day itreceives the notice of cancellation from the premium finance company andshall determine the effective date of cancellation taking intoconsideration the number of days notice required to complete thecancellation.
(e) Whenever a financed insurance contract is canceled, the insurershall, within 20 days of the effective date of cancellation, returnwhatever gross unearned premiums are due under theinsurance contract to the premium finance company, either directly orvia the agent or agency writing the insurance, where an assignment ofsuch funds is included in the premium finance agreement for the accountof the insured or insureds.
(f) In the event that the crediting of return premiums to theaccount of the insured results in a surplus over the amount due from theinsured, the premium finance company shall refund such excess to theinsured via the insured's insurance agent or agency, but no such refund shallbe required if it amounts to less than $1.
History: L. 1968, ch. 287, § 12;L. 1991, ch. 136, § 5; July 1.
