NY Ins L § 3428 (2021)
2021 New York Laws ISC - Insurance Article 34 - Insurance Contracts-Property/casualty 3428 - Cancellation of Insurance Contracts; Return Premiums; Financed Insurance Premiums.

§ 3428. Cancellation of insurance contracts; return premiums; financed insurance  premiums.  (a)  Except  as provided in subsection (e) of this section, whenever an insurance contract made or issued in this state  is cancelled  or  otherwise terminated by the insured before the expiration thereof in accordance with  the  terms  of  such  contract,  the  earned premium  to  be  retained  by  the  insurer  shall  be determined by the applicable rate  filing,  if  any,  otherwise  in  accordance  with  the provisions of such contract.  (b) No authorized insurer or its agent may knowingly accept payment of premiums,  for  an  insurance  contract  made  or  issued in this state, advanced under a premium finance agreement as defined  in  section  five hundred  fifty-four  of  the  banking  law  by  or for any person, firm, corporation or association who is not authorized either to engage in the business of a premium finance agency or to make loans for the purpose of financing insurance premiums in accordance with the banking law,  or  to include  an  amount  for  insurance  in  a retail instalment contract or obligation in accordance with the personal property law.  (c) No authorized insurer shall honor a power  of  attorney  or  other authority  to  cancel  an  insurance  contract executed by an insured in connection with insurance premium financing, except in  accordance  with section   five   hundred  seventy-six  of  the  banking  law.  Voluntary advancement of a premium to the insurer by an agent or broker, where  no additional  charge  over and above the premium has been imposed upon the insured and the insured has not signed a note or other obligation to pay the premium shall not be construed to be within the meaning of insurance premium finance agreement as defined in article twelve-b of the  banking law.  (d) Whenever an insurance contract the premiums for which are advanced under  a  premium  finance  agreement as defined in section five hundred fifty-four of the banking law, is cancelled,  the  insurer  or  insurers within  a  reasonable  time not to exceed sixty days after the effective date of the cancellation shall return whatever gross  unearned  premiums are  due  under the insurance contract or contracts to the bank, lending institution, premium finance agency or sales finance  company,  for  the benefit of the insured.  (e)  Whenever  an  insurance  contract,  issued  by or on behalf of an authorized insurer or insurers, the  premiums  for  which  are  advanced under  a  premium  finance  agreement as defined in section five hundred fifty-four of the banking law, is cancelled, upon such cancellation  the authorized  insurer or insurers shall return the gross unearned premiums due under the insurance contract or contracts, on a pro  rata  basis  to the bank, lending institution, premium finance agency or premium finance company,  for  the  benefit of the insured, provided, however, that such authorized insurer or insurers shall be entitled  to  retain  a  minimum earned  premium  on  the  policy  of ten percent of the gross premium or sixty dollars, whichever is greater.