Title 33, Chapter 22, Section 14
(a) Whenever an insurance policy is canceled and the premiums have been paid by an insurance premium finance company on behalf of the insured, if the insurer has been notified of the existence of the insurance premium finance agreement as required in Code Section 33-22-12, the insurer shall return whatever unearned premiums are due to the insurance premium finance company for the account of the insured. Whenever an insurer, after receiving notification of the existence of the insurance premium finance agreement, returns any unearned premium to anyone other than the insurance premium finance company named in the agreement, the insurer shall be directly responsible to such insurance premium finance company for any and all unearned premiums due as a result of the cancellation. The insurer shall furnish to the agent, agency, or broker placing the insurance a report setting forth an itemization of the unearned premiums under the policy.
(b)(1) In the event that the crediting of return premiums to the
account of the insured results in a surplus over the amount due
from the insured, the premium finance company shall refund the
excess within ten working days of receipt of the return premium or
tender of return premium to the insured via the agent, agency, or
broker placing the insurance and shall furnish such agent, agency,
or broker, upon a written request, a report setting forth an
itemization of the unearned finance charge and other charges under
the premium finance agreement; provided, however, there shall be
no refund required when the excess due the insured is less than
(2) Any insurance premium finance company failing to tender
refunds or to furnish any report requested by the agent, agency,
or broker as required in paragraph (1) of this subsection shall
pay to the insured via the agent, agency, or broker a penalty
equal to 25 percent of the amount of the refund and interest equal
to 18 percent per annum until such time as the refund is made;
provided, however, the maximum amount of such penalty and interest
shall not exceed 50 percent of the amount of the refund due.
(3) Upon receipt of the refund from the insurance premium finance
company, the agent, agency, or broker shall return any unearned
premiums to the insured either in person or by depositing such
refund in the mail within ten working days of receipt of the
(4) Any agent, agency, or broker failing to tender any unearned premium as prescribed in paragraph (3) of this subsection shall be subject to the penalties prescribed in paragraph (3) of subsection (c) of Code Section 33-24-44.
(c) Failure to refund any surplus or return any unearned premium or
to furnish any reports requested by the agent, agency, or broker
under subsection (b) of this Code section shall not invalidate a
notice of cancellation given in accordance with this chapter.