§ 19-14.6-4 - Cancellation of insurance contract upon default.
SECTION 19-14.6-4
§ 19-14.6-4 Cancellation of insurancecontract upon default. – (a) When an insurance premium finance agreement contains a power of attorneyenabling the company to cancel an insurance contract or contracts listed in theagreement, the insurance contract or contracts shall not be cancelled by thecompany unless the cancellation is effectuated in accordance with this section.
(b) Not less than ten (10) days written notice shall bemailed to the insured, at his or her last known address, as shown on therecords of the company, of the intention of the company, to cancel theinsurance contract or contracts unless the default is removed within the ten(10) day period.
(c) After expiration of the ten (10) day period, the companymay cancel the insurance contract or contracts by mailing to the insurer anotice of cancellation. The insurance contract or contracts shall be cancelledas if notice of cancellation had been submitted by the insured personally, butwithout requiring return of the insurance contract or contracts. The companyshall also mail a notice of cancellation to the insured at his or her lastknown address as shown on the records of the company. The insurance contract orcontracts shall be cancelled by the insurer on a pro rata basis.
(d) All statutory, regulatory, and contractual restrictionsproviding that an insurance contract may not be cancelled unless notice begiven to a particular governmental agency, mortgagee, or other third partyshall be applicable to any cancellation effected under the provisions of thissection. The insurer shall give the prescribed notice on behalf of itself orthe insured to any governmental agency, mortgagee, or other third party on orbefore the second business day after the day it receives notice of cancellationfrom the company, and shall determine the effective date of cancellation,taking into consideration the number of days notice required to complete thecancellation.