§ 26.1-20.1-10 — Application of unearned premiums

North Dakota § 26.1-20.1-10

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

Text

1. Whenever a financed insurance policy or assigned risk policy is canceled, the insurer
shall return whatever gross unearned premiums, computed on a pro rata basis, are
due under the insurance policy or assigned risk policy to the insurance premium
finance company for the account of the insured. The unearned premiums must be
returned within thirty days after the date of cancellation. This action by the insurer
satisfies the insurer's obligation under the insurance policy or assigned risk policy to
return unearned premiums.

2. If a premium is subject to an audit to determine the final premium amount, the gross
unearned premium must be calculated upon the premium deposited and the insurer
shall return whatever gross unearned premiums are due based upon the deposit
rather than the actual unearned premium to the insurance premium finance company
for the account of the insured or insureds.
3. If the crediting of returned premiums to the account of the insured results in a surplus
over the amount due from the insured, the insurance premium finance company must
refund any amount of one dollar or more to the insured within thirty days after receipt
of the returned premium.