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Cancellation/Non-Renewal Information |
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Cancellations are issued at the request of the Company when a risk does not meet underwriting requirements in accordance with New York State statutory regulations. During the First Sixty Days of Coverage: When a risk is inspected and minor
deficiencies are noted, the Company may issue a deficiency notice, at
the discretion of the Underwriter and/or Underwriting Manager,
allowing 15‑30 days to repair. Following reinspection, if the
deficiencies are not corrected, a notice of cancellation will be
issued on the risk. If an inspection indicates major
deficiencies, remaining on the risk could possibly jeopardize the
company surplus, Therefore, the policy will be cancelled in
accordance with the Company's Plan of Operation and NYS Regulations
allowing 32 days mailing notice to the policyholder. After the First Sixty Days of
Coverage: If a policy is to be cancelled after the first sixty days, it may only be done for the reasons stated in the Company's Plan of Operation and in accordance with NYS Regulations. [ Return to Top ] CANCELLATION BY AGENT TERMINATING BOOK OF BUSINESS If an agent desires termination of his contract, we will follow the same procedures under Section #3426 for termination of an agent. We will issue cancellation notices 45‑60 days in advance of the policy anniversary/renewal date. If an inspection indicates a below
average risk on an upcoming renewal, the company may elect to issue a
non-renewal notice. The Personal Lines notice must be issued 45‑60
days in advance of the renewal date. The Commercial Lines non‑renewal
notice must be issued in accordance with Section #3426. A letter will be mailed or faxed or a
telephone call will be made to an agent prior to the issuance of a
cancellation or non‑renewal notice. All notices of cancellation or
non-renewal issued at the request of the company will be mailed by
certificate of mailing to the policyholder, agent and mortgag CANCELLATIONS AT THE REQUEST OF THE POLICYHOLDER A policyholder must request the cancellation of a policy in writing. The original policy or a signed Lost Policy Release is acceptable. The request must be made within 30 working days of the requested effective date. Please submit a copy of the policyholder’s replacement policy if the request is over 30 days. Without proof of replacement coverage, we will not go back over 30 days from the date the request was received. NON-RENEWAL BY THE REQUEST OF THE POLICYHOLDER A policyholder must request the non‑renewal of a policy in writing. The original policy or a signed Lost Policy Release is acceptable. The request must be made within 30 working days of the requested effective date. Please submit a copy of the policyholder replacement policy if the request is over 30 days. Without proof of replacement coverage, we will not go back over 30 days from the date the request was received. REQUEST OF INSURED CANCELLATIONS, FLAT CANCELLATIONS Flat cancellations must be submitted within 30 days after requested effective date. We are required by law to provide 15 mailing days to the mortgagee on all cancellations, including request of insured/flat cancellations. If a policyholder replaces coverage elsewhere, please submit a copy of the policyholder’s replacement policy when the request to cancel is over 30 days. Without proof of replacement coverage, we will not go back over 30 days from the date the request was received. [ Return to Top ] Nonpayment notices will be issued approximately 15 days after premium was due. Once the cancellation for nonpayment is issued there will be a fee charge to the insured. Please refer to the current fee schedule. If you receive a late payment in your office, please fax a copy of the payment to your underwriter as proof of receipt. A $25.00 cancellation fee is added to all cancellations for non payment of premium. Please note the cancellation fee takes effect on the day our non-payment cancellation is generated and mailed to the insured. After that date the only way the cancellation fee will be removed is if there was a Company error.
MORTGAGEE RIGHTS TO
CANCELLATION NOTI The mortgagee is entitled to 15 additional mailing days notice on all types of cancellation requests, including request of insured, unless we have a valid signature of the mortgagee on the Lost Policy Release. This protects their rights in the event the policyholder does not replace coverage with another company. Policies cancelled for nonpayment may be reinstated when we receive full payment prior to the cancellation effective date. A reinstatement notice will be mailed promptly to the insured, agent and any mortgagee. A policy cannot be reinstated unless the minimum premium has been paid. If the policyholder pays the minimum amount due, less the $25.00 cancellation fee, the policy will not be reinstated unless the $25.00 balance is paid by the cancellation date. If the annual premium is paid on a cancellation notice, but not the $25.00 cancellation fee, the balance will roll over until the next payment due date. Payment plan fees will be added to the balance due. REWRITING OF CANCELLED POLICIES At the discretion of the underwriter, under limited circumstances, a policy cancelled for nonpayment with Fulmont Mutual Insurance Company may be rewritten. We must have the Company fees, earned premium and the first year's premium in full when we receive the new application. A rewritten policy will not be issued unless these conditions have been met. Return premium checks are made payable to the insured. Unearned commission will be deducted from the commission statements. View your web page for cancellation statements. Earned premium billings will be issued for the period of time that a policy was in effect. Policyholders will be given 10 days to pay the earned premiums before the billings are turned over to a collection agency. Once an earned premium is submitted to a collection agency, no commission will be paid to an agent when the premium is collected. If the deposit premium for a new policy is returned due to insufficient funds, the policy will be issued an underwriting cancellation notice and will not be reinstated or rewritten. If a regular payment is returned for insufficient funds, a letter will be sent to the policyholder advising them of the returned item and that a returned check fee is now due. The replacement payment must be a certified check, money order, credit card payment or cash payment. If a payment received on a cancellation for nonpayment is returned for insufficient funds, the policy will remain cancelled as of the cancellation date as all payments made on cancellation notices are subject to collection. We are unable to rewrite or reinstate a policy cancelled for this reason. If the proper payment, including all fees, is made by certified check, money order, credit card or cash payment PRIOR TO THE CANCELLATION EFFECTIVE DATE, we can accept the payment and a reinstatement will be issued. If the payment is received after the cancellation effective date, the policy will remain cancelled.
[ Return to Top ] Revised 09/2012 Return to Agency Programs Bulleted List or Return to Agency Manual Bulleted List |
