364.130. Cancellation of finance contract under power of attorney--requirements, procedure.
Cancellation of finance contract under power ofattorney--requirements, procedure.
364.130. 1. When a premium finance agreement contains apower of attorney clause enabling the premium finance company tocancel any insurance contract or contracts listed in theagreement, the insurance contract or contracts shall not becanceled by the premium finance company unless such cancellationis done in accordance with this section.
2. Not less than ten days' written notice shall be mailedto the insured, at the last known address shown on the recordsof the premium finance company, of the intent of the premiumfinance company to cancel the insurance contract unless thedefault is cured within such ten-day period.
3. After expiration of such ten-day period, the premiumfinance company may thereafter cancel such insurance contract orcontracts by mailing to the insurer a notice of cancellation.The insurance contract shall be canceled as if such notice ofcancellation had been submitted by the insured, but withoutrequiring the return of the insurance contract or contracts.The premium finance company shall also mail a copy of the noticeof cancellation to the insured at the last known address shownon the records of the premium finance company.
4. All statutory, regulatory, and contractual restrictionsproviding that the insurance contract may not be canceled unlessnotice is given to a governmental agency, mortgagee, or otherthird party shall apply where cancellation is effected under theprovisions of this section. The insurer shall give theprescribed notice on behalf of itself or the insured to anygovernmental agency, mortgagee, or other third party on orbefore the second business day after the day it receives thenotice of cancellation from the premium finance company andshall determine the effective date of cancellation taking intoconsideration the number of days' notice required to completethe cancellation.
(L. 1984 S.B. 686 § 7)