SECTION 25.58. Notice of Intent To Cancel Insurance Because of Default

(a) A notice of intent-to-cancel insurance because of default, as provided by the power of attorney agreement, shall be titled "Notice of Intent to Cancel" and shall be sent to the insured with a cancellation date not earlier than ten days after the mailing date of the notice of intent to cancel. The insurance premium finance company shall establish and maintain either a computer printout or a copy of the intent-to-cancel notice if the policy is subsequently cancelled. Such records shall provide evidence to an examiner that the notice was mailed. A copy of the notice of intent-to-cancel insurance because of default shall be sent to the insurance agent.

(b) If the insurance policy financed by an insurance premium finance company is written under the authority of the Texas Medical Liability Insurance Underwriting Association (Insurance Code, Article 21.49-3), a copy of the notice of intent-to-cancel and the request for cancellation shall be sent to the Texas Medical Liability Insurance Underwriting Association.

Source Note: The provisions of this §25.58 adopted to be effective May 17, 1995, 20 TexReg 3337.