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- Alaska Statutes.
- Title 6. Banks and Financial Institutions
- Chapter 40. Premium Financing Act
- Section 140. Cancellation of Policy.
previous: Section 130
. Delinquency Charge; Separate Financing.
next: Section 150
. Return of Unearned Premiums.
AS 06.40.140. Cancellation of Policy.
- (a) When a premium finance agreement contains a power of attorney enabling the licensee to cancel the insurance policy
listed in the agreement, the insurance policy may not be cancelled by the licensee unless the cancellation is
effectuated under this section.
- (b) The licensee shall give not less than 10 days' written notice to the borrower, by mailing by certified mail or
documented by an affidavit of mailing, of the licensee's intent to cancel the insurance policy unless the default is
cured within that 10-day period. A copy of the notice shall also be mailed by certified mail or documented by an
affidavit of mailing to the insurance agent indicated on the premium finance agreement.
- (c) After expiration of the 10-day period specified in (b) of this section, the licensee may, in the name of the borrower,
cancel the insurance policy by mailing by certified mail or documented by an affidavit of mailing to the insurer a
notice of cancellation. The insurance policy shall be cancelled as if the notice of cancellation had been submitted by
the borrower, but without requiring the return of the insurance policy. The licensee shall also mail by certified mail
or documented by an affidavit of mailing a notice of cancellation to the borrower at the borrower's last-known address
and to the insurance agent indicated on the premium finance agreement.
- (d) All statutory, regulatory, and contractual restrictions providing that the insurance policy may not be cancelled
unless notice is given to a governmental agency, mortgagee, or other third party shall apply where cancellation is
effected under this section. The insurer shall give the prescribed notice on behalf of itself or the borrower to any
governmental agency, mortgagee, or other third party on or before the fifth business day after the day it receives the
notice of cancellation from the licensee and shall determine the effective date of cancellation taking into
consideration the number of days notice required to complete the cancellation.
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