(a) If an insurance policy is cancelled, rejected, or rescinded by the

1. (1) insurer, the insurer shall return or credit any unearned premium paid to the agent or broker of record, or directly to the insured or premium finance company, if applicable; or

2. (2) insured, the insurer shall return or credit any unearned premium to the agent or broker of record or directly to the insured or premium finance company, if applicable, less a cancellation fee not to exceed 7.5 percent of the unearned premium; a cancellation fee may not be charged unless the fee is clearly stated in the policy; the insurer shall return or credit the unearned premium less a lawful cancellation fee

   1. (A) within 45 days of receipt of the request for cancellation or the effective date of cancellation, whichever is later; or
   2. (B) if the policy is selected for audit, within 45 days of completion of an audit; the insurer shall perform and complete an audit within 45 days of receipt of the request for cancellation or the effective date of cancellation, whichever is later.

(b) Notwithstanding (a) of this section, if the insurer clearly indicates one or more of the following features in the policy, an insurer may issue a policy

1. (1) whose premium is earned at a varying rate due to seasonality of exposure;
2. (2) that contains a minimum earned premium; or
3. (3) with a fluctuating premium base.