§ 26.1-20.1-09 — Cancellation of insurance contract upon default

North Dakota § 26.1-20.1-09

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-20.1: Insurance Premium Finance Companies

Text

If a premium finance agreement contains a power of attorney or other authority enabling the
insurance premium finance company to cancel any insurance policy listed in the premium
finance agreement, an insurance policy may be canceled by the insurance premium finance
company as follows:
1. The insurance premium finance company shall mail to the insured and to the
insurance producer indicated on the premium finance agreement at least ten days'
written notice of the insurance premium finance company's intent to cancel the
insurance policy unless the default is cured prior to the date stated in the notice. If the
default is not cured by the date specified in the notice, the insurance premium finance
company may cancel on behalf of the insured by mailing to the insurer written notice of
the cancellation. The insurance policy must be canceled as if the notice of cancellation
had been submitted by the insured, but without requiring the return of the insurance
policy. The notice may be mailed by the insurance premium finance company to the
insurer at the address on the premium finance agreement or on file with the
commissioner. The insurance premium finance company shall also mail a notice of
cancellation to the insured at the insured's last-known address and to the insurance
producer indicated on the premium finance agreement.
2. If statutory, regulatory, or contractual restrictions provide that an insurance policy may
not be canceled unless notice is given to a governmental agency, mortgagee, or other
third party, the insurer shall give the prescribed notice on behalf of itself or the insured
to the governmental agency, mortgagee, or other third party within a reasonable time
after the insurer receives the notice of cancellation from the insurance premium
finance company. The insurance policy must be continued beyond the date of
cancellation requested by the premium finance company until the date specified by the
insurance company in the prescribed notice.