UNDER YOUR PRMIUM SERVICE AGREEMENT WITH THIS COMPNY, WE SHALL EFFECT CANCELLATION OF THE POLICY, PURSUANT TO THE POWER OF ATTORNEY EXECUTED BY YOU, UNLESS WITHIN 10 DAYS FROM THE DATE HEREOF, THE AMOUNT DUE SHOWN HEREIN IS RECEIVED IN OUR OFFICE.
-NO FURTHER NOTICE WILL BE SENT TO YOU-
CANCELLATION WILL BE REQUESTED
8/01/94 On August 5, 1994, Kimbrell faxed to the Agency the following message:
WE RECEIVED A NOTICE OF CANCELLATION FROM THE FINANCE COMPANY. PLEASE ADVISE TODAY IF YOU HAVE RECEIVED A REINSTATMENT, OR IF THE INSURED IS GOING TO PAY ACCOUNT. I WILL HOLD UNTIL TOMORROW AND IF I HAVEN'T HEARD FROM YOU I WILL PROCESS CANCELLATION. On August 8, 1994, the Agency received from PSC a copy of the August 4, 1994 Notice which provided in pertinent part:
*527 NOTICE TO INSURER PLEASE CANCEL THE ABOVE POLICY PURSUANT TO POWER OF ATTORNEY HELD BY US. SAID POER BEING HEREBY EXERCISED BY REASON OF INSUREDS FAILURE TO PAY WHEN DUE INSTALMENT UNDER PREMIUM SERVICE AGREEMENT WITH THIS COMPANY EXECUTED PURSUANT TO TITLE 39 CHAP. 27, CODE OF LAWS OF SOUTH CAOLINA, 1976, CANCEL AS OF 08/05/94 OR AS SOON THEREAFTER AS STATUTORY, REGULATORY OR CONTRACTUAL RESTRICTIONS PERMIT, SENDING THE UEARNED PREMIUM TO THIS COMPANY AT THE ABOVE ADDRESS FOR DISTRIBUTION AS PROVIED BY LAW. WARRANTED, THAT NOT LESS THAN 10 DAYS WRITTEN NOTICE HAS BEEN MAILED TO ISURED OF INTENT TO CANCEL THE POLICY, THAT COPY HEREOF IS BEING MAILED TO INSURED AS NOTICE OF CANCELLATION AT INSUREDS LAST ADDRESS AS SET FORTH IN THIS COMPANYS REORDS, AND THAT THE LICENSE NUMBERED ABOVE IS VALID AND SUBSISTING AS OF THE DATE HEREOF.
NOTICE TO INSURED[2] THIS NOTICE SHALL BE VOID AND INEFFECTIVE IF PAYMENT OF YOUR INDEBTEDNESS HAS BEEN MADE TO US ON OR BEFORE THE OTHERWISE EFFECTIVE DATE OF CANCELLATION. On August 9, 1994, Hiott paid PSC the July premium. The record does not reveal any further communication from PSC to the Agency or any communication from GNIC to Hiott. Jones called Hiott at least weekly seeking payment.
On August 22, 1994, Kimbrell sent another fax to the Agency reading:
TO DATE WE HAVE NOT RECEIVED THE REISTATEMENT FOR THE ABOVE INSURED. PER OUR
*528 PHONE CONVERSATION 8/5/94, THE INSURED HAD MADE PAYMENT AND REINSTATEMENT WOULD BE FORTHCOMING. IF I DON'T RECEIVE THIS WEEK I WILL HAVE TO CANCEL POLICY. PLEASE CONTACT THE FINANCE COMPANY AND ASK THEM TO FAX US A COPY OF THE REINSTATMENT. Jones called Hiott the same day and warned him that if all past due payments were not received by Friday, August 26, 1994, the policy would be canceled.
Finally, on September 6, 1994, Kimbrell notified the Agency by fax that it had received a second cancellation request from PSC and that it would "have to honor their cancellation date." On September 9, 1994, the Agency sent a document entitled "NOTICE OF CANCELLATION" to Hiott stating in part:
YOU ARE HEREBY NOTIFIED THAT THE ABOVE POLICY IS HEREBY CANCELED IN