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  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
  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 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 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.