LD 1678
pg. 3
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LR 2375
Item 1

 
Cancellation of policy. This policy shall may be cancelled at any
time at the request of the insured, in which case this Company
shall, upon demand and surrender of this policy, refund the excess
of paid premium above the customary short rates for the expired
time. This policy may be cancelled at any time by this Company by
giving mailing by certified mail, return receipt requested to the
insured a ten days' written notice of cancellation with or without
tender of the excess of paid premium above the pro rata premium for
the expired time, which and that excess, if not tendered, shall
must be refunded on demand. Notice of cancellation shall must
state that said excess premium, (if not tendered), will be refunded
on demand.

 
Sec. 6. 24-A MRSA §3007, sub-§5, ķA, as enacted by PL 1985, c. 671, §2,
is amended to read:

 
A. To the extent that section 3002 is applicable, the
notice of cancellation shall must be given as provided for
in that section. If section 3002, is not applicable,
cancellation shall is not be effective prior to 10 days
after receipt by the insured of a notice of cancellation.
The notice shall must state the effective date of and the
reason or reasons for cancellation. The notice must be sent
to the insured by certified mail, return receipt requested.

 
Sec. 7. 24-A MRSA §3050, as amended by PL 1989, c. 172, §7, is
further amended to read:

 
§3050. Delivery of notice

 
No notice Notice of cancellation of a policy shall be is not
effective unless received by the named insured at least 20 days
prior to the effective date of cancellation, or, when the
cancellation is for nonpayment of premium, at least 10 days prior
to the effective date of cancellation. Notice must be sent to
the insured by certified mail, return receipt requested. A
postal service certificate of mailing to the named insured at the
insured's last known address shall be is conclusive proof of
receipt on the 5th calendar day after mailing.

 
Except for a policy which that has been in effect for less
than 60 days at the time notice of cancellation is received by
the named insured, the reason for cancellation shall must
accompany the notice, together with a notice of the right to
apply for a hearing before the Superintendent of Insurance within
30 days, as provided in section 3054.


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