N.Y. Insurance Law Section 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 Banking Law § 554 (Definitions)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 Banking Law § 576 (Cancellation of insurance contract upon default)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 Banking Law § 554 (Definitions)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 Banking Law § 554 (Definitions)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.

Source: Section 3428 — Cancellation of insurance contracts; return premiums; financed insurance premiums, https://www.­nysenate.­gov/legislation/laws/ISC/3428 (updated Sep. 22, 2014; accessed Jun. 15, 2024).

3401
Insurable interest in property
3402
Executory contract not a change in interest, title or possession
3403
Anti-arson application
3404
Fire insurance contracts
3405
Fire insurance contract
3406
Copy of examination of insured to be delivered to insured
3407
Property insurance
3407‑A
Property/casualty insurance contract and policy standard provisions
3408
Fire insurance
3409
Distribution of hazardous material report forms
3410
Fire insurance contract
3411
Automobile physical damage insurance covering private passenger automobiles
3412
Automobile physical damage insurance covering private passenger automobiles
3413
Standard claim forms for fire losses
3414
Reports by insurers of certain casualty loss on property owned or operated by religious organizations
3415
Supplemental claim form to be submitted for certain fire loss claims in excess of ten thousand dollars in a city with a population of one...
3420
Liability insurance
3421
Homeowners’ liability insurance
3422
Hate crimes
3425
Certain property/casualty insurance policies
3426
Commercial lines insurance
3427
Gap insurance
3428
Cancellation of insurance contracts
3429
Geographical location of risks
3429‑A
Geographical location of risks in area serviced by a volunteer fire department
3430
Right of insured, agent or broker aggrieved on basis of geographical location of property or risks
3431
Immunity
3432
Immunity
3433
Termination of contracts or accounts of licensed agents or brokers
3434
Motor vehicle insurance policies
3435
Group property/casualty insurance
3435‑A
Motor vehicle insurance policies
3436
Medical malpractice insurance
3436*2
Group credit unemployment insurance and individual credit unemployment insurance
3436‑A
Adverse action against legal reproductive health care or gender-affirming care
3439
Reinsurance contracts excepted
3440
Insurance covering private passenger motor vehicles
3442
Credit card, debit card, or checking account group policies
3443
Workers’ compensation and employers’ liability insurance
3444
Flood insurance notice
3445
Windstorm insurance notice
3446
Product or system group insurance policies
3447
Qualification of environmental remediation insurance for tax credit
3448
Involuntary unemployment insurance policies
3449
Wireless communications equipment insurance policies
3450
Insurance for expenses incurred as a result of an act or threatened act of violence
3451
Identity theft group insurance policies
3451*2
Regulations
3452
Group property travel insurance policies
3453
Group policy for service providers listed in a commercial directory
3453*2
Self-service storage company group insurance policies
3453*3
Employer sponsored group personal excess insurance
3454
Sponsored group personal insurance
3455
Transportation network company group insurance policies
3456
Prohibition against cancellation of policy when motor vehicle is used or operated through a transportation network company program
3457
Group insurance policies for certain for hire motor vehicles
3458
Electronic notices and documents
3458*2
Group insurance for peer-to-peer car sharing programs
3459
Car share exclusions for motor vehicle insurance policies
3460
Prohibition against cancellation of policy when motor vehicle is used or operated through a peer-to-peer car sharing program
3461
Notice of claim
3462
Affordable housing underwriting and rating

Accessed:
Jun. 15, 2024

Last modified:
Sep. 22, 2014

§ 3428’s source at nysenate​.gov

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