Renewal, Non-renewal, Cancellation, and Certificates of Insurance

Grounds for Property Insurance Cancellation - Commercial

Policies may be cancelled 10 DAYS following receipt of written notice of cancellation if: 1) Unoccupied for more than 60 Days undergoing construction 2) Buildings with disconnected utilities for more than 30 DAYS 3) Building in need of permanent repairs following a fire kk

Notice of Cancellation

Any notice is effective once it has been mailed to the named insured at the last known mailing address. Company must keep proof of mailing on a recognized US post office form. Explanation of cancellation must be included.

Short Rate Cancellation

An agent, broker, or other rep can only recommend a cancellation at the expiration date of the policy, unless they provide a written notice of the additional cost of cancellation

Termination of an Independent Agent's Contract

- A company cannot refuse to renew because their agent has been terminated. - If a contract with an agent and a company have been in place for more than 1 year, there are specific requirements regarding termination of contract -Contract can only be terminated with a singed mutual agreement unless company gives a 180 day notice prior to the effective termination date - During those 180 days, agent cannot write or bind any new bsuiness

Personal Lines Policy Cancellation

- Cancellation of personal lines (fire, HO, Dwelling, Auto) must be mailed at least 30 days prior to the effective date of cancellation - If cancellation is non-payment of premium, notice must be mailed 10 days before the effective date. - No policy cancellation regarding ^ can be made solely because of a claim

Day Care Homes

- No insurer may non-renew or cancel a policy on a day care home just because it is a day care - Coverage may be canceled after the policy has been in effect for 60 days for nonpayment of premium, misrepresentation, fraud, or increased risk - After a policy has been in effect for 5 years, the policy may be non-renewed if the insurance has received 60 days notice of the intention of the company not to renew

Policies other than Personal Lines Cancellation

- Notices of cancellation during FIRST 60 DAYS OF COVERAGE must be mailed 30 DAYS BEFORE - After coverage has been in effect for 61 DAYS or longer, notice must be mailed 60 DAYS before cancellation -If cancellation is because of non-paid premium notice msut be sent 10 DAYS prior

Grounds for Property Insurance Nonrenewal

After a policy of fire and extended coverage for ALL PROPERTY has been in effect for more than 5 years, the company may not renew if: 1) Misrepresentation or Fraud 2) Risk has increased 3) The insured has received 60 DAYS notice A company may not choose to not renew residential property on account of: 1) Age of Property 2) Location Age, Sex, color, etc...

Cancellation Provision

All PnC policies must include a cancellation policy

Loss Information

All companies issuing PnC policies, except for private passenger auto, must provide loss info for the past 3 years to the named insured within 30 days upon request

Refusal by Other Insurer

An Insurer cannot cancel, refuse to issue or refuse to renew solely because another company did

Nonrenewal - Personal Lines

Any notice of intention not to renew must be mailed 30 DAYS in advance to be effective, and the nonrenewal wont be effective until 30 DAYS after the mailing date If a company intends to renew but impose changes, it must mail the names insured written notice of chnages 60 DAYS before the renewal claim.

Proximity og Agent/Broker

Client cannot cancel simply because of the geographic location of the producer

Nonrenewal - not personal lines

Company intending to nonrenew for commercial of business insurance must mail a written notice 60 DAYS prior to the expiration date of current policy *If a renewal has an increase of premium by 30% or more, the company must mail insured at least 60 DAYS prior to expiration

Certificates of Insurance

Evidence of PnC coverage Cannot amend, extend, or alter coverage, Cannot contain a warranty

Auto Nonrenewal

Grounds to non-renew if in effect for 5 or more years same as cancellation. Notice must be mailed 60 days before expiration. may NOT be nonrenewed for the reasons of: Age, Sex, Color, Creed, Ancestry, Occupation, Marital Status, Employer of the insured, Physical handicap

Cancelling Auto Policy

If policy has been in affect for 60 Days can be cancelled if: 1) Nonpayment of Premium 2) Misrepresentation 3) Violated conditions 4) Failure to disclose accidents in past 36 MONTHS 5) False Claim 6) cancelled license 7) Epilepsy 8) Conviction record, mental issue 9) Narcotic addiciton in past 36 MONTHS Or if the automobile is 1) Defective 2) Used in carrying passengers for hir 3) Transporting explosives 4) Emergency Vehicle 5) Increase in risk 6) Subject to inspection

Hearings

Insured must appeal cancellation or non-renewal 20 DAYS prior to effective date Director must grant a hearing within 10 Days of receipt of the appeal, must provide 10 DAYS notice. Director must issue written findings within 20 days of hearing Policy will remain until post hearing If the director finds for the insurer, cancellation or nonrenewal becomes effective 30 DAYS from the order

Hate Crimes

Insurer may not cancel, or refuse, to renew a coverage because of a loss from a hate crime within the last 60 MONTHS

Claims Fraud Prevention Act

Insurers must report Fraud when they see it

Rehabilitation Property

No insurer may issue a notice of cancellation or non-renewal for fire and extended coverages without giving 90 DAYS notice for them to repair their property.

Grounds for Property Insurance Cancellation - Residential

Once fire and extended coverage policies have been in effect for 60 DAYS, they may only be canceled if: 1) Nonpayment of premium 2) Misrepresentation of or fraud 3) THE RISK ORIGINALLY ACCEPTED HAS MEASURABLY INCREASED

Reasons of Casualty insurance cancellation (6)

Other than auto, if in effect for 60 days, may be cancelled: 1) Nonpayment 2) Misrepresentation 3) Any insured violated any of the terms of conditions of the policy 4) Risk originally accepted has measurably increased 5) Loss of reinsurance by the insurer 6) Continuation would lead to violation of state insurance laws

Notice of eligibility of the FAIR Plan Association

When a property insurance is cancelled or non-renewed, (not because of premium nonpayment) the company must notify the named insured of eligibility in the FAIR plan

Financing Premiums

terms of financing must be 10% or more of the producers total premium Accounts Receivable to be more than 90 days past due Financing without a license is a 2K fine for each offense, class A misdemeanor