Cancellation of insurance policy by company.
1. When an agreement contains a power of attorney enabling the company, in the name of the insured, to cancel any insurance policy listed in the agreement, the insurance policy must not be cancelled by the company unless it is cancelled in accordance with this section.
2. A company shall mail written notice of its intent to cancel an insurance policy because of a default in payment under an agreement to the insured at his last known address as indicated in the records of the company and to the agent who submitted the agreement at least 10 days before the cancellation. If the default is cured within this 10-day period, the company shall not cancel the insurance policy.
3. If the default is not cured within the 10-day period, the company may cancel the policy if it mails to the insured at his last known address as indicated in the records of the company and to the insurer a notice of cancellation which must include the effective date of cancellation. The policy must be cancelled as if the notice of cancellation had been submitted by the insured, but without requiring the return of the policy.
4. No insurance policy may be cancelled for nonpayment of a charge for a late payment.
5. This section does not authorize the cancellation of an insurance policy without giving any other notice required by law or satisfying other conditions for cancellation.
6. A company shall not impose or collect a fee for the cancellation of a policy or agreement.
Last modified: February 27, 2006