S.B. 750

VETOES

(i) receipt by the insurer of [the] A WRITTEN notice of cancellation
FROM THE PREMIUM FINANCE COMPANY; or

(ii) completion of any payroll audit necessary to determine the amount
of premium earned while the insurance contract was in force.

(2)     A RETURN PREMIUM SHALL BE SUBJECT TO ANY MINIMUM EARNED
PREMIUM STATED IN THE INSURANCE CONTRACT.

(3)      An audit under paragraph (1)(ii) of this subsection shall be performed
within [60] 45 days after the insurer receives the notice of cancellation.

(b) (1) [After the insurer returns to the premium finance company any gross
unearned premiums that are due under the insurance contract, the premium finance
company shall refund to the insured the amount of unearned premium that exceeds any
amount due under the premium finance agreement.] IF CREDITING OF RETURN
PREMIUMS TO THE ACCOUNT OF THE INSURED CAUSES A SURPLUS OVER THE
AMOUNT DUE FROM THE INSURED, THE PREMIUM FINANCE COMPANY SHALL
REFUND THE SURPLUS TO THE INSURED AS SOON AS REASONABLY POSSIBLE NOT
EXCEEDING 15 BUSINESS DAYS AFTER THE PREMIUM FINANCE COMPANY RECEIVES
ALL RETURN PREMIUMS.

(2) A premium finance company need not make a refund to the insured if
the amount of the refund would be less than $5.

(C)     WHENEVER AN INSURER, AFTER RECEIVING NOTICE OF THE EXISTENCE
OF A PREMIUM FINANCE AGREEMENT, RETURNS ANY UNEARNED PREMIUMS TO A
PERSON OTHER THAN THE PREMIUM FINANCE COMPANY NAMED IN THE PREMIUM
FINANCE AGREEMENT, THE INSURER SHALL BE DIRECTLY RESPONSIBLE TO THE
PREMIUM FINANCE COMPANY FOR ALL UNEARNED PREMIUMS ARISING FROM THE
CANCELLATION OF THE PREMIUM FINANCE AGREEMENT.

(D)     IF THE INSURER HAS PRIOR NOTICE OF THE EXISTENCE OF A PREMIUM
FINANCE AGREEMENT, THE INSURER SHALL RETURN TO THE PREMIUM FINANCE
COMPANY ANY UNEARNED COMMISSION THAT THE AGENT DOES NOT REMIT TO
THE PREMIUM FINANCE COMPANY WITHIN THE APPLICABLE PERIOD SPECIFIED IN
SUBSECTION (A)(1) OF THIS SECTION.

(E)     (1) AN INSURER THAT FAILS TO RETURN ANY PREMIUM REQUIRED
UNDER THIS SECTION SHALL PAY INTEREST OF 10% PER YEAR 1% PER MONTH OF ON
THE UNEARNED PREMIUM THAT HAS NOT BEEN RETURNED UNTIL TILE UNEARNED
PREMIUM IS RETURNED.

(2) ANY PAYMENT UNDER THIS SUBSECTION TO THE PREMIUM
FINANCE COMPANY SHALL BE CREDITED TO THE ACCOUNT OF THE INSURED.

(F) (E) AN INSURER MAY NOT DEDUCT FROM ANY RETURN PREMIUM ANY
AMOUNT OWED TO THE INSURER BY THE INSURED UNDER ANY OTHER INSURANCE
CONTRACT.

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