§ 5-3-503 — Notice of cancellation

If a default exists on a consumer insurance
premium loan and any right to cure that exists has expired without cure being
effected, the lender may give notice of cancellation of each insurance policy or
contract to be canceled. If given, the notice of cancellation shall be in writing and
given to the insurer who issued the policy or contract and to the insured. The
insurer, within two business days after receipt of the notice of cancellation together
with a copy of the insurance premium loan agreement if not previously given to the
insurer, shall give any notice of cancellation required by the policy, contract, or law
and, within ten business days after the effective date of the cancellation, pay to the
lender any premium unearned on the policy or contract as of that effective date.
Within ten business days after receipt of the unearned premium, the lender shall
pay to the consumer indebted upon the insurance premium loan any excess of the
unearned premium received over the amount owing by the consumer upon the
insurance premium loan.

Legislative History

Source: L. 2000: Entire article R&RE, p. 1224, � 1, effective July 1.