§ 27-9.1-4.1 - Amounts received in settlement of claims retained for unpaid premiums.
SECTION 27-9.1-4.1
§ 27-9.1-4.1 Amounts received insettlement of claims retained for unpaid premiums. – (a) Any insurance company or insurance producer may retain an amount equal toany unpaid premiums due on the policy under which a claim is being presentedwhen settling any presented claim for an insured; provided, that:
(1) The unpaid premium remains unpaid sixty (60) days afterthe effective date of the policy or the date of the original billing of thepremium, whichever occurs later;
(2) The insurance company shall pay to the insuranceproducer, upon written documentation submitted by the insurance agent or brokerof the unpaid premium due, the amount equal to the unpaid premium due theinsurance producer from the amount of the claim being presented and the balanceof the claim be paid to the insured and/or loss payee or mortgagee named in thepolicy.
(b) This section shall not apply to any health insurancepolicy within the state.