§431:15-323 Recovery of premiums owed. (a) A producer, premium finance company, or any other person, other than the insured, responsible for the payment of a premium shall be obligated to pay upon written demand by the liquidator any unpaid collected premium held by the person, whether earned or unearned, as shown on the records of the insurer. A producer, premium finance company, or any other person shall have no obligation to pay an uncollected, unpaid, unearned premium to the liquidator. The liquidator shall also have the right to recover from the person any part of an unearned premium that represents commission actually paid or credited to the person. Credits or setoffs or both shall not be allowed to a producer or premium finance company for any amounts advanced to the insurer by the producer or premium finance company on behalf of, but in the absence of a payment by, the insured. An insured shall be obligated to pay, upon written demand by the liquidator, any unpaid, earned premium due the insurer as shown on the records of the insurer.
(b) The circuit court of the first judicial circuit shall have original but not exclusive jurisdiction of all civil proceedings to hear and determine the rights of any producer, premium finance company, insured, liquidator, or any other person under this section. The circuit court of the first judicial circuit may provide that any and all proceedings arising under this section shall be referred to the judge presiding over the delinquency proceeding of the insurer. In lieu of a separate action for the collection of unpaid premiums, a producer, premium finance company, insured, or any other person who contests their liability for unpaid premiums may voluntarily submit their claim and dispute to the judge presiding over the delinquency proceeding of the insurer for summary disposition.
(c) The commissioner may take administrative action in accordance with applicable law against a producer, premium finance company, or any other person the commissioner believes is in violation of subsection (a) by suspending, revoking, or refusing to renew an insurance license, or by levying a civil penalty in an amount not to exceed $1,000 for each violation.
(d) Any appeal of the commissioner’s decision pursuant to subsection (c) shall be made pursuant to chapter 91 to the circuit court of the first judicial circuit. [L 1987, c 347, pt of §2; am L 1993, c 165, §1; am L 2002, c 155, §87; am L 2005, c 132, §6]
Case Notes
As proceedings under this section are not in the nature of assumpsit, trial court did not err in denying insurance commissioner attorneys' fees under §607-14 in suit against customer of liquidated mutual benefit society. 99 H. 53, 52 P.3d 823.
Nothing in the language of §478-3 or this section precluded an award of post-judgment interest to insurance commissioner upon final judgment awarding commissioner the unpaid premiums from customer of liquidated mutual benefit society. 99 H. 53, 52 P.3d 823.
Section: Previous 431-15-316 431-15-317 431-15-318 431-15-319 431-15-320 431-15-321 431-15-322 431-15-323 431-15-324 431-15-325 431-15-326 431-15-327 431-15-328 431-15-329 431-15-330 NextLast modified: October 27, 2016