Vermont § 7009 - Cancellation of insurance contract upon default

§ 7009. Cancellation of insurance contract upon default

• (a) When an insurance premium finance agreement contains a power of attorney enabling
  the insurance premium finance company to cancel any insurance contract or contracts
  listed in the agreement, the insurance contract or contracts shall not be cancelled
  by the insurance premium finance company unless such cancellation is effectuated in
  accordance with this section. (b) Not less than ten days’ written notice shall be mailed to the insured, at his or her
  last known address as shown on the records of the insurance premium finance company,
  of the intent of the insurance premium finance company to cancel the insurance contract
  unless the default is cured within such 10-day period. (c) After expiration of such 10-day period, the insurance premium finance company may
  thereafter cancel such insurance contract or contracts by mailing to the insurer a
  notice of cancellation. The insurance contract shall be cancelled as if such notice
  of cancellation had been submitted by the insured himself or herself, but without
  requiring the return of the insurance contract or contracts. Such cancellation shall
  be effective no less than 10 days after mailing of the notice to the insurer. The
  insurance premium finance company shall also mail at least 10 days’ notice of cancellation
  to the insured at his or her last known address as shown on the records of the insurance
  premium finance company. However, if the policy being cancelled is a policy defined
  in subdivision 4222(1) of this title, then the notice of cancellation shall be given by certified mail, return receipt
  requested, to the insured by the insurance premium finance company. (d) 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 insurance premium finance company and shall determine the effective date of cancellation
  taking into consideration the number of days’ notice required to complete the cancellation. (Added 1983, No. 77, § 1.)