is canceled, the insurer on notice thereof shall return to the insured, within a reasonable time not to exceed 60 days of cancellation or notice, ... the amount of gross unearned premiums paid.” N.J. Stat. Ann. § 17:290-4.1 (2007). While it is unclear from the language of the statute whether a failure to refund any unearned premium negates the cancellation of a policy, the caselaw is clear “that, upon cancellation of an insurance contract by either party to it, the obligation rests on the insurer to pay to the insured the unearned premium called for by the terms of the policy.” Spilka v. South America Managers, Inc., 54 N.J. at 464, 255 A.2d at 761 (internal citations omitted); see also Bankers’ Indem. Ins. Co. v. Henry Henkel & Sons, 118 N.J.Eq. 244, 251, 178 A. 565, 568 (N.J.Ch.1935) (<HOLDING>) (quoting Corpus Juris, 1269 § 475). In this
holding that when the company seeks cancellation or rescission it must as a condition of obtaining relief do equity by returning or tendering back the premium paid with interest recognizing that iowa national rejected the argument that equity compelled shared liability among insurers who were not in privity stating the insurer assuming the defense has no cause to complain because it is protecting its own interests and is only doing what it agreed and was paid a premium to do  holding that no binding insurance contract took effect because the initial premium was not paid holding elements of rescission are 1 holding  he who seeks equity must do equity 