What is the notice of cancellation requirement for a policy written for less than 120 days?

0
Posted

What is the notice of cancellation requirement for a policy written for less than 120 days?

0

Any insurance policy which has been in effect for less than 120 days and is not a renewal of a previously existing policy must provide a thirty-day written notice of cancellation. However, if the reason for cancellation is non-payment of premium, then not less than ten days written notice must be furnished. The thirty-day notice requirement applies for material misrepresentation of fact which, if known to the company, would have caused the company not to issue the policy; substantial change in the risk assumed, except to the extent that the insurer should reasonably have foreseen the change or contemplated the risk in writing the policy; substantial breaches of contractual duties, conditions, or warranties; or loss of the insurer’s reinsurance covering all or a significant portion of the particular policy insured; or where continuation of the policy would imperil the insurer’s solvency. Further, cancellation based on changes in climatic conditions must be based on statistical data rela