LegalFix

Section 21 - Cancellation of Insurance Contract; Refund of Finance Charges; Deficiency; Notice of Cancellation

MA Gen L ch 255c § 21 (2019) (N/A)
Copy with citation
Copy as parenthetical citation

Section 21. Upon the cancellation of an insurance contract the insured shall be entitled to a refund of the finance charges, such refund to be computed on a method which is at least as favorable to the insured as the actuarial method, so-called, from the effective date of cancellation irrespective of the time when the premium finance agency is reimbursed by the insurer or insurers. Whenever the gross unearned premiums received from the insurer or insurers are insufficient to extinguish the unpaid amount financed owed to the premium finance agency it may charge and collect a finance charge for the remaining unpaid amount financed not to exceed the rates established pursuant to the provisions of section one hundred and sixty-two B of chapter one hundred and seventy-five in effect on the date of cancellation and from said date to the time when the insured shall pay such balance. A premium finance agency shall give notice of cancellation to the policyholder by delivering such notice in hand to the named policyholder, or by leaving at his last business, residence or other address known to the agency, or by forwarding such notice to said address by first class mail, postage prepaid, and a notice delivered, so left or forwarded, shall be deemed a sufficient notice. No written notice of cancellation shall be deemed effective when mailed by the agency unless the agency obtains a certificate of mailing receipt from the United States Postal Service showing the name and address of the policyholder stated in the policy, but any notice of the intent to cancel as required by section thirty-four K of chapter ninety may be given by first class mail. If a premium finance agency, or any holder of a premium finance agreement, acting under a power of attorney in connection with the cancellation of a motor vehicle liability policy, as defined in section thirty-four A of chapter ninety, gives notice of cancellation in accordance with section thirty-four K of said chapter ninety, and thereafter the insured pays the full amount then due under the premium finance agreement, such agency or holder shall forthwith notify the insurer that it is revoking the notice of cancellation. Such notice of revocation shall not be binding upon the insurer, unless it is in writing and is received by the insurer not less than three days prior to the effective date of cancellation.

LegalFix

Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.

LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.

The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.

You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.

The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.

Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.

We have updated our Terms of Service, Privacy Policy, and Disclosures. By continuing to browse this site, you agree to our Terms of Service, Privacy Policy, and Disclosures.
Section 21 - Cancellation of Insurance Contract; Refund of Finance Charges; Deficiency; Notice of Cancellation