In the event of repossession and cancellation of the policy, the insurance company or agent should protect itself by securing a certificate of repossession on a basis which justifies cancellation, and retention by the finance company, bank and other lending institutions of the return premium as a credit against the unpaid balance of the purchaser or borrower. If crediting the return premium to the account of the purchaser or borrower creates an overage balance, the difference shall be returned to the purchaser or borrower. Where an insured unit has been repossessed, the finance factor (finance company, bank, and other lending institutions) must certify to the insurer, or agent, the facts of such repossession in form satisfactory to the insurer and cancel the policy upon evidence to that effect.
Rulemaking Authority 624.308 FS. Law Implemented 624.307(1), 626.9551, 627.413 FS. History-Repromulgated 12-24-74, Formerly 4-4.16, 4-4.016. 4-184.017.