J. MILLARD TAWES, Governor                     1337

notice of cancellation, specifying the effective date of such cancella-
tion, and the premium finance company shall mail a copy of the can-
cellation notice to the insured at his last known address. No policy
may be cancelled by the holder of a power of attorney because the
delinquency and collection charge as provided in Section 486E has
not been paid.

(d)    Upon receipt of a copy of such cancellation notice by the
insurer or insurers, the insurance contract shall be cancelled as if
the aforesaid notice of cancellation had been submitted by the in-
sured himself, but without requiring the return of the insurance
policy.

(e)    All statutory, regulatory, and contractual restrictions pro-
viding that the insured may not cancel his insurance contract unless
notice is given to a governmental agency, mortgagee or other third
party shall apply where cancellation is effected under the provisions
of this section. The insurer, in accordance with said prescribed
notice where it is required to give such notice in behalf of itself
or the insured, shall give notice to such governmental agency, mort-
gagee or other person; and it shall determine and calculate the
effective date of cancellation from the day it receives the copy of
the notice of cancellation from the premium finance company.

(f)    Whenever an insurance contract is cancelled in accordance
with this section, the insurer shall return whatever gross unearned
premiums are due under the contract to the premium finance com-
pany effecting the cancellation for the account of the insured or
insureds.

486G.

(a)    The Commissioner may deny, suspend, revoke, or refuse to
continue any registration hereunder, if he shall find that: (1) the
registrant has failed to comply with any requirement of the Com-
missioner lawfully made pursuant to this subtitle, or (2) has vio-
lated any provision of this section, or (3) has made a material
misstatement in the application for registration, or (4) has engaged
in fraudulent or dishonest practices, or (5) has demonstrated his
incompetency or untrustworthiness to transact the business of a
premium finance company.

(b)    The Commissioner may in his discretion in lieu of suspen-
sion, revocation, or refusal to continue any registration, impose on
the registrant an administrative penalty of a fine of not less than
$25.00 nor more than $500.00 for the first and second offenses.

(c)    A registrant may surrender any registration by delivering to
the Commissioner written notice thereof, but such surrender shall
not affect such registrant's civil or criminal liability for acts com-
mitted prior to such surrender.

(d)    No revocation or suspension or surrender of any registration
shall impair or affect the obligation of any insured under any lawful
premium finance agreement previously acquired or held by the
registrant.

[a] (e) Any premium finance company or insurer, agent or
broker who wilfully and knowingly violates the provisions of any
section of this subtitle shall be guilty of a misdemeanor and shall,