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Cancellation / nonrenewal issues
Bank fails to pay insurance premium
My client’s homeowners policy was canceled for nonpayment after the bank which holds the mortgage failed to pay the premium. Subsequently there was a loss. What can my client do?
Renewal premium notices
What does the state say about the time frames for notifying insureds of renewal premium amounts on commercial policies?
Company documentation requests for cancellation
May an insurance company ask an automobile policyholder for documentation when the policyholder requests either that his auto policy be canceled or that a vehicle be removed from his policy. For example, many companies require that the policyholder provide a receipt from the Department of Motor Vehicles showing that the plates have been turned in on the insured vehicle, or proof that the vehicle is covered on another policy, before they will honor a policyholder’s request to delete coverage. Are these requests permissible?
Return premium time frames, calculation
We have a brokerage agreement with a carrier that states nothing about when the carrier will return any unearned premium due the insured if the insured decides to cancel. Is there anything in the law that addresses this?
Notice of renewal premium
One of our carriers recently raised the insurance premium on a large contracting risk substantially. We don't know whether the contractor was given adequate notice. Could you review the rules on this?
Block nonrenewals
We just received a notice from one of our carriers stating that they will begin to nonrenew all of their policies of a specific line of business. Can a carrier just decide to nonrenew an entire line of business?
Nonrenewals and curative attempts by the insured
If a carrier issues a legal and timely notice of nonrewal for failure to provide minimum information necessary to accurately rate the policy, does the policyholder have a chance to provide the information and prevent the nonrenewal?
Cancellation for nonpayment of audit premium, prior-year endorsements
Is it permissible for an insurance company to cancel a current policy for nonpayment of an audit premium on a prior policy?
Cancellation of premium-financed policies
If a premium-finance company cancels a policy, is it necessary for a managing general agent to send a cancellation notice to the mortgagee?
Agent advances premium, requests cancellation for nonpayment
Can the agent go ahead and notify certificate holders and additional named insureds when the agent has advanced the premium and then has to request cancellation for nonpayment of premium? We are thinking this might get the client to pay up; otherwise, we are going to be stuck with a 25% minimum premium.
Claims inquiry should not be considered a claim
If an insured makes a claim inquiry on a policy, not filing a claim, but only asking a “what if” or hypothetical question, can the carrier take action on that policy?
Renewal premium notice requirements—multi-state risks, exempt lines
We have a multi-state risk headquartered in New Jersey but with a couple of locations in New York. The company did not send advance warning of a big premium increase but instead billed the client after the renewal date. Shouldn’t the company have sent advance notice before the policy renewed?
Nonrenewals for bankruptcy of commercial client
Is it permissible for insurance company to nonrenew a commercial policyholder who has filed for bankruptcy?
Premium-financed return premium
We have several trucking policies written through an managing general agent. They are telling us that when they return premiums on premium-financed policies they cannot return the premium to our agency. They say they are required by law to return the premium to the premium-finance company. Is this correct?
Which agent should sign the ACORD 35
When a client decides to change from one policy to another—firing the old agent and hiring a new agent—which agent should complete the ACORD 35 form and request cancellation of the old policy?
Premium payments/nonsufficient funds
I write commercial-lines policies and occasionally receive a premium payment check drawn on insufficient funds. My client’s action subjects me to a not sufficient funds (NSF) fee, or a returned check fee that I am then forced to pay. I’d like to be able to charge this back to the insured, but am wary of running afoul of the department’s regulations. Can I do this?
Commercial-lines cancellation—short rate
My client got a commercial policy from a carrier but then we found a better rate for the same coverage elsewhere. He didn’t pay the first month’s premium on time, but plans to pay it. My client received a policy cancellation from the carrier canceling on a short-rate basis. Is this allowed in New Jersey?
Nonpayment cancellation gap prevention
How does the effective time for nonpayment cancellation affect a policyholder who intends to make the payment on the cancellation date?
Cancellation at policyholder’s request—effective date
Is a company required to cancel flat when the policyholder presents evidence that another policy was obtained for the same risk, and became effective on the date the policyholder wants to cancel?
Midterm cancellation
Can an insurer cancel a policy midterm for lack of supporting business?
Special conditional renewal notice—premium increases
What is the premium increase that triggers a special conditional renewal notice, or any special obligations of the agent?
Back dating a policy
After two years of a policy being in force, can an insured request to back date cancellation two years. The insured has stated he has a duplicate policy.
Cancellation due to catastrophe loss
Can an insurance carrier cancel a homeowners policy due to a catastrophe loss?
Conditional renewal notice for a commercial or homeowners risk
Is there a threshold for increasing the premium at renewal when an insurer must issue a conditional renewal notice on a commercial or homeowners risk?
Nonrenewal—specific reason must be noted
Can an insurer nonrenew a policy for a reason that is not listed on a notice of nonrenewal?
Unclaimed returned premiums
My agency has written returned premium checks to former clients, which have gone uncashed for quite some time. These clients have been unreachable or are out-of-business. Can we now move this money to our agency account and use it for agency expenses?