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Cancellation/Non-Renewal
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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 10 working days of the requested effective date.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 10 working days of the requested effective date. REQUEST OF INSURED CANCELLATIONS, FLAT CANCELLATIONS Flat cancellations must be submitted within 10 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, we will cancel effective on the requested date when we are provided with proof of the replaced insurance policy. [ Return to Top ] Nonpayment notices will be issued approximately 15 days after premium was due. 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. REWRITING OF CANCELLED POLICIES At the discretion of the underwriter, under very limited circumstances, a policy cancelled for nonpayment may be rewritten. We must have the 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. This applies to direct‑bill agents. Unearned commission will be deducted from the commission 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. [ Return to Top ] |
