28-44-401. CANCELLATION OF INSURANCE PURSUANT TO A PREMIUM FINANCE LOAN. (1) With respect to a premium finance loan, the debtor may give the lender authority to cancel insurance contracts obtained for the debtor pursuant to the premium finance loan agreement.
(2) A lender may not cancel unless he gives the debtor fifteen (15) days’ written notice that cancellation of a specified insurance contract will become effective on a stated date and at a stated time unless the debtor before that date cures his default with respect to the premium finance loan. The debtor may cure his default by paying to the lender the amount of the installment payments due, without acceleration of the unpaid balance of the principal, at the time notice is given, together with the amount of delinquency or deferral charges due at that time.
(3) Upon cancellation the lender shall rebate or refund to the debtor the amount of any unearned loan finance charge. The amount of the rebate shall be equal to the amount of the unearned loan finance charge that would have been rebated or refunded pursuant to section 28-42-307, Idaho Code, if the loan had been prepaid in full at the date of cancellation.
(4) All laws of this state relating to cancellation of insurance contracts must be complied with when cancellation occurs pursuant to this section.
(5) If the insurance contract cancelled provides motor vehicle liability insurance:
(a) The notice of cancellation shall briefly inform the debtor of the consequences under the laws of this state of operating a motor vehicle without liability insurance; and
(b) A copy of the notice of cancellation shall be sent to the Idaho transportation department.
History:
[28-44-401, added 1983, ch. 119, sec. 3, p. 293.]
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