955 CMR 2.06 - Cancellation Charge

When the agreement so provides, a cancellation charge which is permitted pursuant to M.G.L. c. 255C, § 15 may be made and collected in an amount not to exceed the greater of 2% of the unpaid balance due on the agreement or $5.00. No cancellation charge may be assessed except in connection with a cancellation notice pursuant to M.G.L. c. 255C, § 21, which has been issued to the policyholder more than ten days after the effective date of a charge permitted herein under 955 CMR 2.05 and further provided that, when an agreement is primarily for personal, family or household purposes, the maximum allowable cancellation charge shall be Five dollars. It is further provided that the amount, if any, by which any cancellation charge allowed exceeds Five dollars may be collected if and only if the cancellation issued has become effective. No cancellation charge may be assessed or collected for more than one cancellation notice issued during the term of the agreement. Any cancellation charge due may be deducted from the gross unearned premiums received from the insurer.

Notes

955 CMR 2.06