Idaho State Statutes - Idaho Attorney Directory

(1) With respect to a premium finance loan, the debtor may give the lender
authority to cancel insurance contracts obtained for the debtor pursuant to
the premium finance loan agreement.
(2) A lender may not cancel unless he gives the debtor fifteen (15) days'
written notice that cancellation of a specified insurance contract will become
effective on a stated date and at a stated time unless the debtor before that
date cures his default with respect to the premium finance loan. The debtor
may cure his default by paying to the lender the amount of the installment
payments due, without acceleration of the unpaid balance of the principal, at
the time notice is given, together with the amount of delinquency or deferral
charges due at that time.
(3) Upon cancellation the lender shall rebate or refund to the debtor the
amount of any unearned loan finance charge. The amount of the rebate shall be
equal to the amount of the unearned loan finance charge that would have been
rebated or refunded pursuant to section 28-42-307, Idaho Code, if the loan had
been prepaid in full at the date of cancellation.
(4) All laws of this state relating to cancellation of insurance
contracts must be complied with when cancellation occurs pursuant to this
section.
(5) If the insurance contract cancelled provides motor vehicle liability
insurance:
(a) The notice of cancellation shall briefly inform the debtor of the
consequences under the laws of this state of operating a motor vehicle
without liability insurance; and
(b) A copy of the notice of cancellation shall be sent to the Idaho
transportation department.

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