(a) In the case of a property/casualty insurance policy where the property policyholder does not make the first installment payment to the premium finance agency after the conclusion of the 60-day period described in section 405.6(b)(1) of Title 3 and the premium finance agency cancels the property/casualty insurance policy based on such nonpayment at any time prior to the next succeeding installment payment, the insurer, other than a life insurer, shall return to the premium finance agency for the benefit of the property policyholder, in accordance with the terms of the property/casualty insurance policy but no later than 60 days after the effective date of such cancellation, the gross unearned premiums that are due under the property/casualty insurance policy on a pro rata basis, calculated as if the property/casualty insurance policy had been canceled 60 days prior to the effective date of such cancellation.

(b) Nothing in this section shall constitute the provision of free insurance in violation of Insurance Law section 2324 or a deviation from filed rates in violation of Insurance Law section 2314.