415-B:9 Cancellation of Insurance Contract Upon Default. –
I. When a premium finance agreement contains a power of attorney enabling the premium finance company to cancel upon default any insurance contract or contracts listed in the agreement, the insurance contract or contracts shall not be cancelled by the premium finance company unless such cancellation is effected in accordance with this section.
II. After default, the premium finance company may cancel such insurance contract or contracts by mailing to the insurer a notice of cancellation, stating the effective date of cancellation. Such date shall be not less than 10 days from the date of mailing the notice. The insurance contract shall be cancelled as if such notice of cancellation had been submitted by the insured himself but without requiring the return of the insurance contract or contracts. The premium finance company shall also mail a copy of the notice of cancellation to the insured at his last known address as shown on the records of the premium finance company, and to the insurance agent or broker. Termination of workers' compensation policies shall be made pursuant to the provisions set forth in RSA 281-A:9.
III. All statutory, regulatory, and contractual restrictions providing that the insurance contract may not be cancelled 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 shall give the prescribed notice on behalf of itself or the insured to any governmental agency, mortgagee, or other third party on or before the second business day after the day it receives the notice of cancellation from the premium finance company. The insurer shall determine the effective date of cancellation taking into consideration the number of days' notice required to complete the cancellation.
IV. The notice of cancellation shall state the date, not less than 10 days after its mailing, on which such cancellation shall become effective.