§ 5-65-7.1 - Notice of cancellation or failure to renew policies.
SECTION 5-65-7.1
§ 5-65-7.1 Notice of cancellation orfailure to renew policies. – Upon the cancellation or failure to renew, the insurance company having writtena liability policy, as described in § 5-65-7, shall notify the director ofthe contractors' registration board of the cancellation or failure to renew.The policy shall continue in effect until ten (10) days after written notice ofthe cancellation is given to the director of the contractors' registrationboard of the cancellation or termination of the liability policy by the issuinginsurance company or companies in addition to any other notices which may berequired by law. Any insurance company that fails to notify the director asrequired in this section shall be subject to prosecution for a misdemeanor andupon conviction of that offense may be punished by a fine of not more than twohundred fifty dollars ($250) for each offense and shall be responsible for anyclaims, fines or penalties from any parties resulting from lack of notice. Allcriminal actions for any violation of this section shall be prosecuted by theattorney general. The attorney general shall prosecute actions to enforce thepayment penalties and fines at the request of the director.